Profit and net asset value for 2020 were affected by the sale completed last September of part of the Vilnius Gates business centre. The transaction’s impact on INVL Baltic Real Estate’s 2020 profit was EUR 4.4 million, while the impact on the company’s net asset value per share was EUR 0.335.
“INVL Baltic Real Estate’s consolidated net operating incoming from its properties in 2020 was EUR 2.2 million and was 8.5% larger than in 2019. We are pleased that despite the sale of two properties during the year, growth of net operating incoming was maintained, mainly influenced by the results of the Talent Garden Vilnius coworking space which began operating at the start of 2020 and caused operating income for the office building at Vilniaus Street 33 to grow. Talent Garden Vilnius not only keeps much of those premises occupied, with the rate of occupancy averaging 80% in the fourth quarter of the year, but at the same time is also competing successfully in the market for coworking space, earning a name for itself as the market’s flagship,” says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
“Thanks to both the transactions done last year and successful restructuring of assets, we produced significant growth of asset value and return for investors. In terms of the outlook, we will continue working to develop existing properties and increase their value and looking for new investment projects. We’re ready to invest in non-standard, creative solutions that would help earn a big return for investors and expand the real estate management business,” Bakšinskas adds.
The company’s ability, authorised last year, to buy-back its own shares when the share price on the market is smaller than the net asset value (NAV), will give shareholders additional liquidity opportunities, and when INVL Baltic Real Estate acquires shares for less than the NAV, the value of the remaining shares should grow.
While the coronavirus pandemic since early last year has negatively affected the company’s results due to discounts given to some tenants with activities limited by the quarantine, that effect is not material and, if there are no new major changes, will not have a significant impact on the company’s results.
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. The company’s properties had occupancy of between 72% and 100% as year-end.
INVL Baltic Real Estate’s property holdings currently have a total area of 26 000 sq. m. and a value of EUR 24.13 million.
Since its launch (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.
