The real estate investment company INVL Baltic Real Estate will pay dividends of EUR 1 million to shareholders for 2020, an allocation of EUR 0.12 per share. That and other decisions were adopted at the general meeting of shareholders of the company which took place today.
“Both thanks to last year’s successful exits and successful property transformations, we have proven once again that we are able to create significant growth in the value of assets and a long-term return for our investors. The company has accumulated free cash which enables it to pay a dividend higher than the EUR 0.09 envisaged in its dividend policy,” says Vytautas Bakšinskas, a member of the Investment Committee of INVL Baltic Real Estate.
The dividends will be paid out within a month after the adoption of the decision. Those persons will have a right to receive them who are shareholders of INVL Baltic Real Estate at the end of the business day on 13 May this year. Based on the share price on 28 April 2021, the dividend yield amounts to 5%.
Also approved at the meeting were procedures for the acquisition of the company’s own shares and the transfer of EUR 4.3 million from retained earnings to a reserve for the acquisition of own shares.
According to Vytautas Bakšinskas, the right to buy-back the company’s own shares will be used if the share price on the market is lower than the net asset value (NAV). That will give shareholders additional liquidity opportunities, and when INVL Baltic Real Estate acquires shares for less than the NAV, the value of the remaining shares should grow.
The maximum buy-back price per share was set at INVL Baltic Real Estate’s last published net asset value per share, and the minimum at EUR 1.45. Regarding the maximum number of shares that may be acquired, the total own shares held by INVL Baltic Real Estate may not exceed one-tenth of the company’s share capital.
Seeking to annul 5 088 586 ordinary registered own shares acquired by INVL Baltic Real Estate in share buy-back processes, a proposal was approved to reduce the company’s share capital from EUR 19.1 million to EUR 11.7 million by annulling own shares which the company has acquired.
A decision was also approved at the general meeting of shareholders form a Supervisory Board at INVL Baltic Real Estate, the designated members of which are Raimondas Rajeckas, the CFO of Invalda INVL, Audrius Matikiūnas, the head of INVL Asset Management’s Legal and Product Management Team, and Eglė Surplienė, a wealth manager at Gerovės Valdymas with more than 25 years of experience in the Lithuanian financial market.
The members of the Supervisory Board will be able to take office when the Bank of Lithuania approves their candidacies.
INVL Baltic Real Estate owns real estate in Vilnius and Riga: office buildings in the Old Town of the Lithuanian capital on Vilniaus Street and in Šiaurės Miestelis, and the Dommo Business Park manufacturing, warehouse and office complex beside the Riga bypass. The company’s properties had occupancy of between 72% and 100% as year-end.
INVL Baltic Real Estate’s property holdings currently have a total area of 26 000 sq. m. and a value of EUR 24.13 million.
Since its launch as a collective investment undertaking (on 22 December 2016), INVL Baltic Real Estate has been one of the Baltic real estate funds open to retail investors with the highest stable returns. The fund operates 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 a further 20 years.
