The real estate investment company INVL Baltic Real Estate’s consolidated net profit for the first quarter of this year was EUR 0.24 million and decreased 66% compared to the same period of 2018. The company’s consolidated equity at the end of March this year was EUR 35.55 million, while equity per share was EUR 2.70 and increased 13.2% compared to the end of March 2018 (also taking dividend payments into account).
INVL Baltic Real Estate’s consolidated net operating income from its properties in the first quarter this year totalled EUR 0.4 million, or 53.8% less than in the corresponding period last year. Consolidated revenue increased 3.4% in comparison with the first quarter last year, to EUR 1.54 million. Of that, consolidated leasing income from its properties increased 4.8% to EUR 1.15 million.
“In the first quarter this year, new lease agreements at our largest property, the IBC Business Centre, also brought a need to renovate its premises. During the period more than 2,000 square metres of premises were renovated and handed over to tenants. Those repairment expenditures were recognised as expenses and so reduced profit,” said Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management which manages INVL Baltic Real Estate.
Also today INVL Baltic Real Estate announced that a contract on the sale of land plots the company owns in Latvia will not be signed. Dommo Grupa, which INVL Baltic Real Estate owns, in September 2018 signed a preliminary agreement envisaging the sale 20.6 hectares of land in Latvia. That preliminary agreement lost force on 30 April 2019 due to circumstances independent of INVL Baltic Real Estate. “We continue planning to consider a variety of alternatives for using or realizing Dommo Grupa’s land holdings,” V. Bakšinskas said.
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 alongside 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. Occupancy levels at the company’s properties at the end of the first quarter of 2019 ranged from 67% to 100%.
As per decisions adopted at the company’s general meeting of shareholders on 26 April this year, INVL Baltic Real Estate will pay shareholders dividends of EUR 0.13 per share for 2018. The total amount allocated to dividends will be EUR 1.71 million.The dividend yield, based on the price of the company’s shares on the Nasdaq Vilnius exchange on 29 April, is 5.3%.
As of 31 March 2019, INVL Baltic Real Estate’s property holdings had a total area of 56 900 sq. m. and a value of EUR 58.3 million. Of the properties, 80% by asset value are located in the central part of the city of Vilnius.
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.
