The real estate investment company INVL Baltic Real Estate had a consolidated net profit of EUR 3.4 million in 2021, according to audited results. The value of the company’s property holdings increased by EUR 5.5 million during 2021 to EUR 29.6 million at year-end. Its consolidated equity at the end of 2021 was EUR 20.3 million, or EUR 2.52 per share, and increased 19% compared to the end of 2020 (also taking into account dividends that were paid).
INVL Baltic Real Estate’s consolidated net operating incoming from properties in 2021 was EUR 1.6 million, or 27% less than in 2020 (EUR 2.2 million) but 25% more than the 2020 figure for the property holdings that were not sold (EUR 1.3 million). The company’s consolidated revenue of EUR 2.7 million for 2021 was 30% less than in 2020 (EUR 3.9 million). Of that amount, consolidated operating income from property holdings fell 40% to EUR 1.7 million. The decreases of both consolidated operating income and consolidated revenue were due to the sale of the IBC and Vilnius Gates business centres during 2020.
Last year was the second year in business for Talent Garden Vilnius, the coworking space operated by the company, and despite the challenges of the pandemic it was an extremely successful year, enabling significant improvement of the company’s results.
“Throughout the entire two-year pandemic period, Talent Garden Vilnius managed to maintain high occupancy and continually improve its financial results. Thanks to the successful performance of Talent Garden Vilnius and to other lease agreements signed in previous periods, the net operating income of the property at Palangos Street 4/Vilnius Street 33 in 2021 grew by 44% compared to 2020, to EUR 1.1 million,” says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
Last year, in an auction organised by Turto Bankas, the company acquired a property at Vilniaus Street 37 –1,552 sq. m. of administrative premises and a 0.1185 ha plot of land– for EUR 2.4 million. After design and renovation work on the building, in late 2023 the company will offer the market approximately 1,700 sq. m. of space for lease in high-end offices on the second and third floors of the building and commercial premises on the ground floor.
“Last year, we focused heavily on preparing design proposals for reconstruction of the company’s property at Palangos Street 4/Vilniaus Street 33, which were presented to the public in January 2022. I am delighted that with the architects who prepared the proposals we found the best solutions for renovating the Communications Palace. We expect the reconstruction to increase the complex’s above-ground area by about 3,600 sq. m.,” Bakšinskas says.
The properties owned by INVL Baltic Real Estate showed a high level of occupancy in 2021 along with improving operating results. The global pandemic did not have a significant impact on the company’s performance.
“We are pleased that our clients continue to be loyal and put their trust in INVL Baltic Real Estate as a reliable and long-term partner. In the coming year, we will strive to continue to meet our clients’ expectations and increase value for investors,” the INVL Baltic Real Estate fund manager says.
Payment of EUR 1 million of dividends to shareholders is planned
INVL Baltic Real Estate is proposing the payment of EUR 1 million of dividends to shareholders for 2021, or EUR 0.12 per share. This and other decisions are proposed to be taken at the general meeting of shareholders of the company convened for 12 April 2022.
“The company’s successful operations demonstrate our ability to generate significant growth of asset value and allow us to pay investors a dividend higher than the EUR 0.09 per share envisaged in the company’s dividend policy,” says Vytautas Bakšinskas, who is also a member of the INVL Baltic Real Estate Investment Committee.
The dividends will be paid out within a month of when the decision is adopted. Those persons will be eligible to receive them who are shareholders of INVL Baltic Real Estate at the end of business on 27 April 2022. Based on the 17 March 2022 share price, the dividend yield is above 5%.
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. At year-end the company’s properties had occupancies of 98% to 100%.
INVL Baltic Real Estate’s current property holdings have a total area of 28,000 sq. m. and a value of EUR 29.6 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.