The real estate investment company INVL Baltic Real Estate had a consolidated net profit of EUR 0.2 million in the first quarter of this year, 3.9 times more than in the same period last year when net profit was EUR 0.05 million. The acquisition of investment property in the first quarter of last year affected the change in net profit.
The company’s consolidated equity at the end of March 2023 was EUR 23.75 million. Equity per share was EUR 2.95 and compared to the end of March 2022 grew 21.8%.
The value of INVL Baltic Real Estate’s investment property holdings at the end of the first quarter of 2023 was EUR 36.57 million and was 23% more than a year earlier (when it was EUR 29.73 million).
The company’s properties maintained a high rate of occupancy and increased their operating income. INVL Baltic Real Estate’s consolidated net operating income from its properties in the first quarter of 2023 was EUR 0.49 million and was 4.86% less than in the same period last year (when it was EUR 0.51 million). Consolidated revenue grew 7% over the period of comparison to EUR 0.86 million, of which consolidated rent income from own properties increased 10.7% to EUR 0.51 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 0.35 million in the first quarter of 2023, or 5.4% more than in the same period last year. The Žygis Business Centre’s rent income increased 7% over the same period of comparison to EUR 0.09 million. The occupancy of the Talent Garden Vilnius at the end of March this year was 98%, while that of the Žygis Business Centre was 96%.
“In the first quarter of this year, we continued design work for the planned reconstruction of the buildings located at Vilniaus Street 37 and Palangos Street 4/Vilniaus Street 33 in the Old Town. In February, a permit for maintenance works was received for the site at Vilniaus Street 37, which allows for repairs and restoration of protected parts of the building. A contract for that work was concluded at the end of the first quarter with the construction company Sivysta, which plans to start the work in the near future,” says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
Maintenance and reconstruction of the building at Vilniaus Street 37, in which about EUR 3 million is planned to be invested, are scheduled to be completed in mid-2024. After those investments, INVL Baltic Real Estate will offer the market approximately 2,100 sq. m. of high-end leasable space. There will be about 1,400 sq. m. of office space on the second and third floors of the building, with three restaurant facilities expected to occupy the total of about 700 sq. m. on the first floor.
On 18 April, INVL Baltic Real Estate’s general meeting of shareholders approved paying dividends of EUR 0.09 per share, for a total dividend allocation of EUR 725,000. The dividend yield is about 4%.
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, 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 98% to 100% at the end of December 2022.
INVL Baltic Real Estate currently owns properties with a total area of 28,000 sq. m. and a value of EUR 36.6 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.
