INVL Baltic Real Estate, a real estate investment company, has increased the dividend provided in the company’s dividend policy more than twofold – from EUR 0.012 to EUR 0.026 per share. It has also been decided to increase the share par value five times to EUR 1.45 subject to approval of the Bank of Lithuania. The change would come into force after the approval by the Bank of Lithuania. The decisions were taken by the general meeting of shareholders today.
‘We believe that both our performance in the management of properties in appealing locations and today’s decisions will contribute to improving the attractiveness of the company‘s shares for those who are considering opportunities for investing in real estate’, says Vytautas Bakšinskas, the Real Estate Fund Manager of INVL Asset Management, which manages INVL Baltic Real Estate.
In addition, the general meeting of shareholders approved of the decision to reduce the management fee paid by INVL Baltic Real Estate to the management company INVL Asset Management from 1.5 % to 1.0 %. The accordingly amended agreement with INVL Asset Management will enter into force on 1 January 2018.
The opportunity for the reduction of the management fee arose due to the fact that starting from the next year a company managed by INVL Baltic Real Estate will assume the administration of the real estate owned by INVL Baltic Real Estate. As a result of this, the scope of the services for which INVL Baltic Real Estate was paying the management fee to INVL Asset Management will decrease. The general meeting of shareholders has also approved amendments to the depository agreement.
The share liquidity of INVL Baltic Real Estate is also expected to increase in the coming year. Invalda INVL has announced that it is planning to dispose of up to 22 % of the company’s shares it manages, thus stimulating an increase of the number of free float shares from 16 % to 38 %.
INVL Baltic Real Estate’s consolidated net profit for the first three quarters of this year was EUR 2.1 million and was 2.3 times larger than in the same period last year. The company’s consolidated equity value per share increased 19.5 % year on year to EUR 0.49 per share at the end of September 2017 (equity per share at the end of September 2016 was EUR 0.42, also accounting for dividends of EUR 0.012 per share that were paid). INVL Baltic Real Estate’s consolidated net operating income from the properties it owns was EUR 1.9 million in three quarters of this year and increased 5.1 % year-on-year.
INVL Baltic Real Estate manages 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. As of November 30 of this year, the company’s property holdings had a total area of 55,000 square metres and were valued at EUR 56 million.
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.
