The real estate investment company INVL Baltic Real Estate had a net profit last year of EUR 4.104 million (EUR 0.09 per share), of which EUR 2.17 million was from property revaluation. The company had revenue of EUR 5.7 million in the period, including EUR 3.0 million from leasing properties it owns. Compared with 2014, when the new company operated for 8 months, total revenue grew 62% while revenue from the leasing of owned properties rose 72%.
The company's equity capital at the end of 2015 was EUR 18.595 million, or EUR 0.43 per share, and during the year increased 28%. The consolidated annual operating results were approved today by the company's board.
"It was not only effective asset management that let us achieve such results, but also successful acquisitions. We started this year with a much enlarged portfolio of real estate in Lithuania and Latvia that stands out for high rates of occupancy and generates stable cash flows," said Egidijus Damulis, the CEO of INVL Baltic Real Estate.
Last July, INVL Baltic Real Estate completed a EUR 3.1 million transaction to increase its stake in the Dommo logistics complex near Riga to 100%. In October, the company agreed to acquire 6,500 square metres of commercial property at the Vilnius Gates complex in the Lithuanian capital (address: Gyneju St. 14).
Moreover, the leased percentages of the properties owned by the company are remarkably high. The average occupancy of the premises that the company lets was 87% at the end of 2015. For most of the properties the level was between 92% and 100%, and almost 40% of the Vilnius Gates premises acquired in October are now leased out.
According to Damulis, this year the company will continue to focus on the effective management and development of its commercial real estate portfolio. Plans are to offer premises for lease not only at Vilnius Gates but also at Dommo Business Park while ensuring the quality of the portfolio and of services. "We're obliged to seek strong results by the companyā€™s current offering of new shares and the approved dividend policy," he said.
The annual return on equity that INVL Baltic Real Estate targets is 8% or more. The approved dividend policy foresees payment of a dividend every year of at least EUR 0.012 per share, which is equal to 3% of the new shares' offering price. An experienced real estate asset management team will seek to ensure such results.
INVL Baltic Real Estate is currently conducting an EUR 11.5 million offering of new shares, making it possible, regardless of the amount of money one has available, to invest in this company which is successfully managing and maintaining its real estate portfolio. The offering price for the issue is EUR 0.40 per share, with no restrictions on the size of an initial investment.
The offering is considered an attractive alternative for those who want to invest in real estate but are unable to allocate time or money for its maintenance. The subscription period will end on 3 March for individuals and on 4 March for institutional investors. The shares can be acquired by submitting an order at offices of INVL Finasta, the lead manager of the issue, in Vilnius or Kaunas, or at designated branch offices of Siauliu Bankas in Vilnius, Kaunas, Klaipeda or Siauliai.
The money that is raised will be used to partially finance or refinance the acquisition of the 6,500 square metres of premises at the Vilnius Gates complex and to balance the company's debt-to-equity ratio before it becomes a closed-end investment company. Once it acquires that status, transfer of the company's management on the basis of a trust to the asset management company INVL Asset Management is planned.
INVL Baltic Real Estate manages real estate valued at EUR 52 million comprising 58,000 square metres of premises at strategically attractive locations in Vilnius and Riga: office space at the Vilnius Gates complex, the IBC Business Centre near Konstitucijos Ave., office buildings in the Old Town on Vilniaus St. and in Siaures Miestelis, office and warehouse premises in Kirtimai, and the Dommo Business Park manufacturing, warehouse and office complex beside the Riga bypass. The company's shares are traded on the NASDAQ Vilnius exchange.
