Audited results of INVL Baltic Real Estate group of 2023

The audited consolidated net profit of INVL Baltic Real Estate group amounted to EUR 0.7 million, the revenue was EUR 3.6 million for the period of 2023 (for 2022 – consolidated net profit was EUR 4.2 million, revenue was EUR 3.4 million).

The audited net profit of INVL Baltic Real Estate itself amounted to EUR 0.7 million in 2023 and EUR 4.2 million in 2022.

The annual information is published in the European Single Electronic Format (ESEF) in compliance with the requirements of Commission Delegated Regulation (EU) 2019/815 of 17 December 2018 (zip file attached). This is the official format for the annual information that will be approved by the Ordinary General Shareholders‘ Meeting. The annual information (without the auditor‘s report) is additionally provided in pdf format as a copy of the published ESEF information.

Additional information:

The real estate investment company INVL Baltic Real Estate had a consolidated net profit of EUR 0.7 million last year, 83 percent less than in 2022 when the net profit was EUR 4.2 million.

Profit last year was reduced by a marked increase in interest expenses (EUR 1.0 million in 2023 compared to EUR 0.4 million in 2022) as well as by a slight impairment of investment properties (EUR 0.2 million) due to revaluation, whereas in 2022 the revaluation of assets had a positive impact on profit (EUR 4.0 million).

The company’s consolidated equity at the end of 2023 was EUR 23.52 million. Equity per share was EUR 2.92 and compared to a year earlier grew 3%, also taking into account dividends that were paid.

“Last year the company’s properties under management continue to maintain a high level of occupancy and increased their operating income. Although the company’s net profit decreased, the performance indicators that are significant for fund operations, like net operating income, have steadily increased. Last summer the Pramogų Bankas building in Vilnius was added to company’s real estate portfolio,” says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.

The value of INVL Baltic Real Estate’s investment properties at the end of 2023 was EUR 42.1 million and was 15% more than a year earlier (when it was EUR 36.4 million). The growth in value was due to investments in the property at Vilniaus Street 37 in the Lithuanian capital.

The company’s consolidated revenue in 2023 increased 6% to EUR 3.6 million, of which consolidated rent income from own properties increased 16% to EUR 2.2 million. INVL Baltic Real Estate’s consolidated net operating income from its properties was EUR 2.4 million and was 19% more than in 2022.

“For a fourth straight year now, we managed to maintain maximum occupancy of Talent Garden Vilnius and continually improve that property’s financial results. Last year was also significant in terms of developing the building at Vilniaus Street 37 in the Vilnius Old Town and notably advancing with the design for reconstruction of the buildings at the intersection of Palangos and Vilniaus streets,” Vytautas Bakšinskas says.

The net operating income for the largest property that INVL Baltic Real Estate owns – the office building at Palangos Street 4 with the Talent Garden Vilnius coworking space which the company operates – was EUR 1.5 million in 2023 year, or 19% more than in 2022.

In April last year, repair and restoration work began on the building at Vilniaus Street 37. When it is complete, the company will be able to offer the market about 2,200 sq. m. of high-end leasable space in offices on the second and third floors and dining facilities on the first floor.

Currently, the technical design for the reconstruction of the buildings at the intersection of Palangos and Vilniaus streets is being completed with the design company Viltekta. The reconstruction is expected to increase the surface area of the complex by approximately 3,600 sq. m.

In July 2023, INVL Baltic Real Estate acquired the company Pramogų Bankas, which owns the building of the same name in Vilnius, for EUR 2.9 million.

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 2023.

INVL Baltic Real Estate currently owns properties with a total area of 32,100 sq. m., the value of the real estate at the end of 2023 was EUR 42.1 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-ended investment company which is managed by INVL Asset Management, the leading alternative asset manager in the Baltics. INVL Baltic Real Estate will operate as a closed-end investment company until 2046, with extension possible for a further 20 years.

About INVL Asset Management

INVL Asset Management is the leading Baltic alternative asset manager. We strive to deliver superior risk-adjusted returns to our investors while positively impacting our region’s economic development.

We are part of the Invalda INVL group with a track record spanning over 30 years. Our group manages more than EUR 1 billion of assets across multiple asset classes including private equity, forests and agricultural land, renewable energy, real estate as well as private debt. Our scope of activities also includes family office services in Lithuania and Latvia, management of pension funds in Latvia, and investments in global third-party funds. Further information

The person authorized to provide additional information:
Real Estate Fund Manager of Management Company
Vytautas Bakšinskas

Annual information_INVL Baltic Real Estate.pdf