The real estate investment company INVL Baltic Real Estate’s consolidated net profit for the first half of this year was EUR 1.7 million and compared to the same period last year decreased 10.5%. The company’s consolidated equity at the end of June was EUR 35.3 million, while equity per share was EUR 2.685 and compared to the end of June 2018 increased 8.7% (also taking dividend payments into account).
INVL Baltic Real Estate’s consolidated net operating income from its properties in the first half of 2019 was EUR 0.8 million, or 52.6% less compared to the same period last year. Consolidated revenue totalled EUR 3.0 million, or 1.9% more than in the first half last year. Of that, consolidated leasing income from its properties increased 2.9% to EUR 2.32 million.
“Our aim is to continue efficient management of the company's assets. Since the beginning of the year we have concluded new lease agreements and announced the implementation of a new project in the Old Town of Vilnius – plans to open the first Talent Garden Vilnius co-working space in the Lithuanian capital by the end of this year. We believe that this space will not only become an attractive place for work, meetings and new ideas, but will also enable the effective use of the assets managed by the company, thus creating value for those who invest in INVL Baltic Real Estate too,“ says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
According to him, assessing the results for the reporting period, the profit for the first half of the year was also significantly influenced by the renovation of premises at the company’s largest property, the IBC Business Centre, as these repairment expenditures were recognized as expenses.
As previously announced, INVL Baltic Real Estate will establish a new Talent Garden Vilnius co-working space in the building at Vilnius Street that is part of the company’s property portfolio. The coworking space will be established according to a franchise agreement to represent Talent Garden, one of Europe’s largest coworking platforms, which was signed in June this year. The opening of Talent Garden Vilnius will conclude two years of renovation and other work on the building involving total investments by INVL Baltic Real Estate of roughly EUR 2 million.
Talent Garden Vilnius, at over 2,000-sq. m, will offer companies, teams and freelance professionals from the digital and creative industries spaces of varied sizes and privacy levels for work and meetings, with a 150-seat modern conference hall at its heart. Plans are for the site to offer over 230 workplaces altogether, with more than half functioning as private offices.
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 half of 2019 ranged from 66% to 100%.
As of 30 June 2019, INVL Baltic Real Estate’s property holdings had a total area of 56 900 sq. m. and a value of EUR 60.0 million. By asset value, 80% of the properties are located in the central part 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.
