The real estate investment company INVL Baltic Real Estate’s consolidated net profit for the first quarter of this year was EUR 0.7 million and compared to the same period last year grew 95%. The company’s consolidated equity at the end of March was EUR 32.85 million. Equity per share was EUR 2.50 and increased 12.6% from a year earlier. (Equity per share at the end of the first quarter of 2017 was EUR 2.39, also accounting for dividends that were paid.)
INVL Baltic Real Estate’s consolidated net operating income from its properties in the first quarter of 2018 was EUR 0.9 million, or 51% more than in the same period last year. The company’s consolidated revenue totalled EUR 1.5 million, or 11% less than in the first quarter last year, including a 17.9% rise in consolidated leasing income from property holdings to EUR 1.1 million.
“We started the year enlarging our circle of tenants – some moved into Vilnius Gates and the business centre on Palangos Street, and we signed a new long-term contract with the public institution Mokykla Vaikams on the lease of space in a building in Šiaurės Miestelis. Our goal is to continue effectively managing the company’s business centres and commercial premises, and thus to increase the value of the assets and the return to investors,” said Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
He said it is hoped the company’s performance will also be appreciated by those considering investing in real estate. INVL Baltic Real Estate already on 2 May is beginning a public share offering during which both institutional investors and Lithuanian residents can acquire shares of the company. A total of up to 22% or 2.893 million of the company’s shares which are now owned by Invalda INVL will be offered to investors, in three stages, through 13 December.
During the first stage, from 2 May to 4 July, the share price will be EUR 2.4984 – the company’s net asset value per share that was published most recently, on 30 April. Purchase orders may be submitted at INVL Asset Management’s customer consulting offices in Vilnius (Gynėjų St. 14), Kaunas (Savanorių Ave. 349), and Klaipėda (Minijos St. 19). Each investor may acquire no fewer than 500 of the company’s shares.
Considering the real estate investment alternatives – buying residential or commercial property –, investing in professionally managed commercial real estate by acquiring shares in the company that owns it has several advantages.
“Housing you buy sooner or later requires extra maintenance, which isn’t needed when you invest in company-owned offices or other commercial-use buildings – a professional team takes care of that. Plus, an investment in shares offers flexibility, since you can put in a relatively small amount, and if necessary you can sell the shares. I’d also point out that, with high occupancy levels for commercial space in Vilnius and growing business needs in recent times, demand for this type of premises is big, and our properties are in attractive locations,” Vytautas Bakšinskas said.
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 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. At 31 March 2018, INVL Baltic Real Estate’s property holdings had a total area of 56 900 square metres and a value of EUR 56.6 million. Of INVL Baltic Real Estate’s properties, 80% by asset value are in the central part of Vilnius. Their occupancy levels at the end of March 2018 ranged from 77% to 100%.
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.
