The real estate investment company INVL Baltic Real Estate’s consolidated net profit for the first half of this year was EUR 1.9 million and compared to the same period last year grew 24.8%. The company’s consolidated equity at the end of June was EUR 34.06 million. Equity per share was EUR 2.59 and increased 12.4% from a year earlier. (Equity per share at the end of the first half of 2017 was EUR 2.42, also taking into account dividends that were paid.)
INVL Baltic Real Estate’s consolidated net operating income from its properties in the first half of 2018 was EUR 1.7 million and increased 43% compared to the same period last year. The company’s consolidated revenue totalled EUR 2.9 million, or 11% less than in the first half last year, including a 19% rise in consolidated leasing income from its properties to EUR 2.2 million.
“We view the first half of this year as successful. Net operating income grew due to both the groundwork done until now and effective asset management. We will work to continue increasing the value of the assets and the return to investors,”said Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management which manages INVL Baltic Real Estate. He said the reconstruction of the Vilnius Gates business centre which was completed last year also contributed to this year’s earnings growth. Net operating income from that property increased eight times in the first half of this year compared to the same period last year, to EUR 0.45 million.
It is hoped that people who are considering investing in commercial real estate by participating in INVL Baltic Real Estate’s public share offering will also appreciate the company’s performance. “This investment opportunity is worth noting not just because when you invest in a fund that owns commercial real estate you don’t have to worry about the property’s maintenance, since a team of professionals handles that, but also because the amount you initially invest can be rather small, unlike when you acquire real estate yourself,” Bakšinskas explained.
The second stage of INVL Baltic Real Estate’s share offering will take place from 18 August through 18 September, with a share price of EUR 2.5900 (the net asset value per share of the company which was last published, on 17 August). Purchase orders may be submitted at INVL Finasta in Vilnius (Gynėjų St. 14), Kaunas (Savanorių Ave. 349), and Klaipėda (Minijos St. 19). Shares are available for purchase by both institutional investors and Lithuanian residents. Each investor may acquire no fewer than 500 shares in the company.
INVL Baltic Real Estate began the public share offering on 2 May. In three stages, ending 13 December, a total of 22% or 2.893 million of the company’s shares owned by Invalda INVL will be offered to investors. The first stage took place from 2 May through 4 July.
INVL Baltic Real Estate owns real estate in Vilnius and Riga: office and commercial premises at the Vilnius Gates complex in the Lithuanian capital, the IBC Business Centre near Konstitucijos Avenue, office buildings in the Old Town on Vilniaus Street and in Šiaurės Miestelis, and the Dommo Business Park manufacturing, warehouse and office complex beside the Riga bypass.
At 30 June 2018, INVL Baltic Real Estate’s property holdings had a total area of 56 900 square metres and the value of its investment assets, following a new valuation, increased to EUR 57.5 million. Given the large change in the value of the assets compared to the forecast for its 2018 results which the company published at the end of 2017, that forecast is no longer valid.
Of INVL Baltic Real Estate’s properties, 80% by asset value are in the central part of Vilnius. Their occupancy levels at the end of June 2018 ranged from 77% to 100%.
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.
