The real estate investment company INVL Baltic Real Estate will pay its shareholders dividends of EUR 0.13 per share for 2018, allocating a total of EUR 1.71 million to dividends. The decision was made at the general meeting of the company’s shareholders that took place today, 26 April.
The dividends will be paid out within a month of the decision by shareholders. Persons who are shareholders of the company at the end of business on 13 May this year will have the right to receive the dividends. The dividend yield, based on the price of the company’s shares on the Nasdaq Vilnius exchange on 25 April, is 5.3%.
Also approved at the shareholders meeting was the distribution of the profit that INVL Baltic Real Estate earned in 2018, the company’s 2018 audited financial report, an updated agreement on depository services, updated articles of association of the company, and the possibility of the company buying back its own shares.
The possibility of the company acquiring its own shares was approved in light of the version of the Law on Collective Investment Undertakings that took effect on 1 February this year. Based on the decision of the shareholders meeting, the maximum number of shares that could be acquired would be no more than one-tenth of the company’s share capital, or 1.315 million shares.
A share buy-back would be possible for 18 months from the date of the decision. The maximum acquisition price would be equal to INVL Baltic Real Estate’s last published net asset value per share, and the minimum would be 1 euro. The company would be able to make use of the buy-back possibility if a decision to do so is made by its management company.
It is also envisaged that own shares acquired by INVL Baltic Real Estate could be cancelled by a decision of the general meeting of shareholders or sold at the decision of the management company, under the condition that their minimum sale price be equal to the acquisition price and that the manner of sale ensure equal opportunities for all shareholders to acquire the shares.
Updated articles of association of INVL Baltic Real Estate were also approved by the shareholders meeting. They were prepared on the basis of new versions of the Law on Companies and the Law on Collective Investment Undertakings, and will take effect when the articles of association approved by the meeting of shareholders are confirmed by the Bank of Lithuania and registered at the Centre of Registers.
INVL Baltic Real Estate’s audited consolidated net profit for 2018 was EUR 3.17 million and was 11.4% smaller than in 2017. The company’s consolidated equity at the end of last year was EUR 35.3 million. Equity per share was EUR 2.69 and increased 9.7% from a year earlier (also taking into account dividends that were paid out). INVL Baltic Real Estate’s consolidated net operating income from its properties totalled EUR 3 million in 2018, or 13% more than in 2017.
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.
