The real estate investment company INVL Baltic Real Estate’s consolidated net profit for the first half of this year was EUR 0.92 million, or 46% less than in the same period of 2019. The company’s consolidated equity at the end of June this year was EUR 24.6 million, or EUR 1.87 per share. Equity per share increased 27.4% compared to the end of the first half of 2019 also taking into account dividends that were paid out.
INVL Baltic Real Estate’s consolidated net operating income from its properties in the first half of this year was EUR 1.28 million, or 59.3% more than in the same period last year. The company’s consolidated revenue was EUR 2.29 million, or 23% less than in the first half of 2019. Of that, the consolidated operating income from property holdings decreased 27.4% to EUR 1.7 million.
“Despite the challenges of the first half of the year, we continued to maintain our major properties’ high level of occupancy and stable flow of rental income. Although the company’s revenue and net income figures were impacted by the sale of the IBC Business Centre, completed in March, looking at net operating income we achieved growth. That was due not just to work with clients and the successful start of the Talent Garden Vilnius coworking space, but also to reduced costs compared to the previous year,” says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
In his view, although the coronavirus pandemic negatively influenced the company’s results, the impact was not material – discounts given to tenants whose activities were banned during the quarantine totalled approximately EUR 50,000. Considering the tenant structure of INVL Baltic Real Estate as well as the impact of the coronavirus wave early this year on tenants’ operations and the company’s results, it can be forecast that, barring substantial changes in the second half of the year, this pandemic will not have a significant impact on the company’s results for this 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, 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 the end of June this year, the company’s properties had occupancy levels of between 69% and 100%.
As of 30 June 2020, INVL Baltic Real Estate’s property holdings had a total area of 33 900 sq. m. and a value of EUR 38.9 million. A full 71% of INVL Baltic Real Estate’s properties by asset value are 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.
