The real estate investment company INVL Baltic Real Estate’s consolidated net profit for the first three quarters of this year was EUR 2.1 million and was 2.3 times larger than in the same period last year. The company’s consolidated equity value per share increased 19.5 per cent from a year earlier to EUR 0.49 per share at the end of September 2017 (equity per share at the end of September 2016 was EUR 0.42, also accounting for dividends of EUR 0.012 per share that were paid).
“We’re pleased with the results that have been achieved – they encourage us to continue working actively to increase the value of property holdings and so create gains for investors,” said Vytautas Bakšinskas, the Real Estate Fund Manager at INVL Asset Management, which manages INVL Baltic Real Estate.
INVL Baltic Real Estate’s consolidated net operating income from the properties it owns was EUR 1.9 million in the first three quarters of this year and compared to the same period last year increased 5.1 per cent.
“After completion in the third quarter of the main reconstruction works at the Vilnius Gates business centre, the real occupancy of the centre’s premises reached 82 per cent, which will result in significant growth of leasing income in the last quarter of this year. Moreover, in late July we signed a lease agreement with TransferGo, one of biggest Lithuanian start-ups, providing international money transfer services in 46 countries, for the lease of nearly a thousand square metres of space in the centre of Vilnius, on Palangos Street. This agreement will not only make it possible to boost leasing income from that property, but also, once the premises are reconstructed, will increase the property’s leasable area,” Vytautas Bakšinskas said.
INVL Baltic Real Estate’s consolidated revenue for three quarters of this year was EUR 4.8 million and, compared with the same period of 2016, grew 4.3 per cent. Of that, EUR 2.9 million was consolidated leasing income from owned properties, which increased 7.4 per cent. Vilnius Gates leasing income rose 38.7 per cent in the first nine months of this year compared with the same period last year to EUR 0.39 million.
The value of the transaction for the sale of 3 000 square metres of office and warehouse premises on Kirtimų Street in Vilnius, which was completed in September this year, was EUR 1 million. This property was valued at EUR 0.8 million at the end of 2016, so the transaction had a positive impact of EUR 0.2 million on 2017 results.
INVL Baltic Real Estate manages real estate in Vilnius and Riga: office and commercial premises at the Vilnius Gates complex in the Lithuanian capital, the IBC Business Centre near Konstitucijos Avenue, office buildings in the Old Town on Vilniaus Street and in Šiaurės Miestelis, and the Dommo Business Park manufacturing, warehouse and office complex beside the Riga bypass. As at September 30 of this year, the company’s property holdings had a total area of 55 000 square metres and a value of EUR 54.5 million.
Since 22 December 2016, INVL Baltic Real Estate has operated as a closed-end investment company. Management of the company was assumed by INVL Asset Management, one of Lithuania’s leading asset management firms. The company will operate as a closed-end investment company until 2046, with extension possible for another 20 years.
