The real estate investment company INVL Baltic Real Estate had a consolidated net profit of EUR 0.46 million in the first nine months of this year, 78 percent less than in the same period last year when the net profit was EUR 2.1 million. The decrease in profits was influenced by a sharp rise in interest costs and the recognition last year of a significant increase in the value of investment assets.
The company’s consolidated equity at the end of September 2023 was EUR 23.3 million. Equity per share was EUR 2.89 and compared to the end of September 2022 grew 12%, also taking into account dividends that were paid.
The value of INVL Baltic Real Estate’s investment property holdings at the end of September 2023 was EUR 41.7 million and was 23% more than a year earlier (when it was EUR 33.9 million).
The properties the company owns and manages maintained a high occupancy rate and increased their operating income in the reporting period. INVL Baltic Real Estate’s consolidated net operating income from its properties in the nine months of 2023 was EUR 1.8 million and was 22% more than in the same period last year (when it was EUR 1.4 million). Consolidated revenue grew 4% over the period of comparison to EUR 2.6 million, of which consolidated rent income from own properties increased 12.5% to EUR 1.6 million.
The net operating income for the largest property that INVL Baltic Real Estate owns – the office building at Palangos Street 4 in the Vilnius Old Town with the Talent Garden Vilnius coworking space which the company operates – was EUR 1.1 million in January-September this year, or 18.6% more than in the same period last year. The Žygis Business Centre’s rent income increased by 2.9% over the same period of comparison to EUR 0.27 million. At the end of September this year, both Talent Garden Vilnius and Žygis Business Centre had occupancy of 100%.
“In the third quarter, we focused on our investment property holdings in the Lithuanian capital. We continued renovation work on the building at Vilniaus Street 37, where we are advancing rapidly according to schedule. Early in the quarter we successfully completed the transaction to acquire the Pramogų Bankas building in the Lithuanian capital and started to implement our long-term plans to redevelop the site and increase its value. We also continued design works for the planned reconstructions of the buildings at Palangos Street 4/Vilniaus Street 33,” says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
About INVL Baltic Real Estate
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, the Pramogų bankas and the 55-ha Dommo Logistics and Industrial Park by the juncture of highway A8 and the A5 Riga bypass road. The company’s properties had occupancies of 85% to 100% at the end of September 2023.
INVL Baltic Real Estate currently owns properties with a total area of 32,100 sq. m. and a value of EUR 41.7 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. The company is managed by INVL, the leading investment management and life insurance group in the Baltic region. INVL Baltic Real Estate will operate as a closed-end investment company until 2046, with extension possible for a further 20 years.
About INVL
INVL is the leading investment management and life insurance group in the Baltics. Its companies manage pension and mutual funds and life insurance directions, individual portfolios, private equity, and other alternative investments. Over 300,000 clients in Lithuania, Latvia, and Estonia and international investors have entrusted the group’s companies with the management of more than EUR 2 billion of assets. In the business for more than 30 years now, the group has solid experience in managing private equity assets and building market players that are leaders in their respective fields in the Baltic countries and Central and Eastern Europe.
