Real estate investment company INVL Baltic Real Estate’s consolidated net profit for the first quarter of this year was EUR 121 thousand, a decrease of 70% compared to the same period of 2020. The company’s consolidated equity at the end of March this year was EUR 18 million, or EUR 2.23 per share, and increased 11.8% compared to the end of the first quarter of 2020 (also taking into account dividends that were paid).
INVL Baltic Real Estate’s consolidated net operating incoming from its properties in the first quarter of this year was EUR 317 thousand, or 56% less than in the same period last year. The company’s consolidated revenue was 59.6% less than in the same period last year and amounted to EUR 601 thousand. Of that amount, consolidated operating income from property holdings decreased 60.3% to EUR 410 thousand. The decrease in operating income was due to last year’s completed sale transactions for the IBC and the Vilniaus vartai business centres.
The revenue of INVL Baltic Real Estate’s biggest property holding, the office building at Palangos St. 4 in Vilnius which houses the Talent Garden Vilnius coworking space operated by the company, totalled EUR 300 thousand in the first quarter, or 17.4% more than in the same period last year.
“The property had occupancy of 96% at the end of the first quarter. Due to the restrictions of the quarantine in the country, restaurant tenants in the building were given rent discounts throughout the quarter, but the extremely successful operations of Talent Garden Vilnius and high occupancy allowed us to achieve growth of operating income,” says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
He says the company remains focused on increasing the value of its existing assets and is looking for new investment projects. The company is ready to invest in non-standard, creative solutions that would help earn a big return for investors and expand the real estate management business.
INVL Baltic Real Estate owns real estate in Vilnius and Riga: office buildings in the Old Town of the Lithuanian capital on Vilniaus Street and in Šiaurės Miestelis, and the Dommo Business Park manufacturing, warehouse and office complex beside the Riga bypass. At year-end the company’s properties had occupancy of between 72% and 100%.
INVL Baltic Real Estate’s asset holdings currently have a total area of 26 000 sq. m. and a value of EUR 24.1 million.
Since its launch as a collective investment undertaking (on 22 December 2016), INVL Baltic Real Estate has been one of the Baltic real estate funds open to retail investors with the highest stable returns. The fund operates 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 a further 20 years.
