Following the completion of procedures for a change of nominal share value, trading in the shares of the real estate investment company INVL Baltic Real Estate is being renewed as of 25 January. Trading in the shares was suspended during a change of the company’s Articles of Association and of the nominal value and total number of INVL Baltic Real Estate registered shares specified therein.
The five-fold increase of the nominal value of INVL Baltic Real Estate’s shares – from EUR 0.29 to EUR 1.45 – did not change the total value of investors’ shares: the number of shares held by an investor who previously had 10 000 decreased to 2 000, but their value on the exchange should correspondingly increase five times.
The nominal value and outstanding number of INVL Baltic Real Estate registered shares was changed after obtaining the Bank of Lithuania’s permission to amend the company’s Articles of Association, the new wording of which was approved at a shareholders meeting held on 29 December 2017. Upon registration of the new wording of Articles of Association on 15 January 2018, the nominal value of INVL Baltic Real Estate’s ordinary registered shares was changed from EUR 0.29 to EUR 1.45 and the number of ordinary registered shares was changed from 65 750 000 to 13 150 000.
The last price of INVL Baltic Real Estate shares on the exchange was EUR 0.48, which after the change of nominal share value corresponds to a recalculated price of EUR 2.40. At this price, INVL Baltic Real Estate has a market capitalization of EUR 31.56 million.
“The nominal share value was changed with the aim of increasing the shares’ liquidity and reducing price fluctuations,” said Vytautas Bakšinskas, the Real Estate Fund Manager at INVL Asset Management, which manages INVL Baltic Real Estate.
Also seeking to boost the attractiveness of INVL Baltic Real Estate’s shares, at the end of 2017 the dividends envisaged in the company’s dividend policy were more than doubled, to EUR 0.026 per share. It is planned that the liquidity of INVL Baltic Real Estate’s shares will increase this year, as Invalda INVL announced in late 2017 that it intended to relinquish up to 22 per cent of the company’s shares, in that way increasing the stock’s free float from 16 per cent to 38 per cent.
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 30 November 2017, the company’s property holdings had a total area of 55 000 square metres and a value of EUR 56 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.
