The shareholders of INVL Baltic Real Estate, which is currently offering a new issue of shares, approved a dividend policy that foresees the payment every year of dividends of no less than EUR 0.012 per share, which equals 3 per cent of the new shares' offering price. The company's shares are traded on the NASDAQ Vilnius exchange.
"The stable payment of dividends is one of the terms that both individuals and institutional investors consider before making a decision to invest," said Egidijus Damulis, the CEO of INVL Baltic Real Estate, who at the shareholders meeting which took place today was also elected as a member of the company's board. He said that, depending on operating results and the need for funds, the dividends paid out to investors may also be larger than what is foreseen in the policy.
INVL Baltic Real Estate is currently offering a new issue of shares with a value of EUR 11.5 million, an offering price of EUR 0.40 per share and no restrictions on the size of an initial investment.
The new issue makes it possible to invest – regardless of the amount of money available – in a company that is successfully managing and maintaining a real estate portfolio of varied office and commercial properties in strategically attractive locations in Vilnius and Riga which enjoy high occupancy rates and generate stable cash flows. It is considered an attractive alternative for those who want to invest in real estate but are unable to dedicate the time or money needed for its upkeep.
The annual return that INVL Baltic Real Estate seeks is at least 8 per cent. That is what the team managing the portfolio, which has strong experience in the field of real estate, will seek to ensure.
Those wishing to acquire the new shares must by 3 March submit a subscription order indicating the desired share purchase amount. That can be done at the offices of INVL Finasta in Vilnius (Gyneju St. 14) and Kaunas (Savanoriu Pr. 349) as well as at branch offices of Siauliu Bankas in Vilnius (Seimyniskiu St. 1A, 6th floor), Kaunas (Laisves Al. 80), Klaipeda (Taikos Pr. 101) and Siauliai (Tilzes St. 149). The subscription period will end for individuals at 5 pm on 3 March, and for institutional investors at 5 pm on 4 March.
The money that is raised will be used to partially finance or refinance the acquisition of 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 Farmland, another company in the INVL group which invests in agricultural land, also has an approved dividend policy.
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 alongside the Riga bypass.