INVL Baltic Real Estate - Notification on material event

AB INVL Baltic Real Estate preliminary operating results and factsheet for 12 months of 2015

Vilnius, Lithuania, 2016-01-27 08:41 CET (GLOBE NEWSWIRE) -- For 12 months of
2015, the unaudited consolidated net profit of the AB INVL Baltic Real Estate
group and the part of profit attributable to the shareholders of AB INVL Baltic
Real Estate was EUR 4.1 million. 

Additional information:

The real estate investment company INVL Baltic Real Estate had a net profit
last year of EUR 4.104 million (EUR 0.09 per share), of which EUR 2.17 million
was from property revaluation. The company had revenue of EUR 5.7 million in
the period, including EUR 3.0 million from leasing properties it owns. Compared
with 2014, when the new company operated for 8 months, total revenue grew 62%
while revenue from the leasing of owned properties rose 72%. 

The company’s equity capital at the end of 2015 was EUR 18.595 million, or EUR
0.43 per share, and during the year increased 28%. The consolidated annual
operating results were approved today by the company’s board. 

“It was not only effective asset management that let us achieve such results,
but also successful acquisitions. We started this year with a much enlarged
portfolio of real estate in Lithuania and Latvia that stands out for high rates
of occupancy and generates stable cash flows,” said Egidijus Damulis, the CEO
of INVL Baltic Real Estate. 

Last July, INVL Baltic Real Estate completed a EUR 3.1 million transaction to
increase its stake in the Dommo logistics complex near Riga to 100%. In
October, the company agreed to acquire 6,500 square metres of commercial
property at the Vilnius Gates complex in the Lithuanian capital (address:
Gynėjų St. 14). 

Moreover, the leased percentages of the properties owned by the company are
remarkably high. The average occupancy of the premises that the company lets
was 87% at the end of 2015. For most of the properties the level was between
92% and 100%, and almost 40% of the Vilnius Gates premises acquired in October
are now leased out. 

According to Damulis, this year the company will continue to focus on the
effective management and development of its commercial real estate portfolio.
Plans are to offer premises for lease not only at Vilnius Gates but also at
Dommo Business Park while ensuring the quality of the portfolio and of
services. “We’re obliged to seek strong results by the company’s current
offering of new shares and the approved dividend policy,” he said. 

The annual return on equity that INVL Baltic Real Estate targets is 8% or more.
The approved dividend policy foresees payment of a dividend every year of at
least EUR 0.012 per share, which is equal to 3% of the new shares’ offering
price. An experienced real estate asset management team will seek to ensure
such results. 

INVL Baltic Real Estate is currently conducting an EUR 11.5 million offering of
new shares, making it possible, regardless of the amount of money one has
available, to invest in this company which is successfully managing and
maintaining its real estate portfolio. The offering price for the issue is EUR
0.40 per share, with no restrictions on the size of an initial investment. 

The offering is considered an attractive alternative for those who want to
invest in real estate but are unable to allocate time or money for its
maintenance. The subscription period will end on 3 March for individuals and on
4 March for institutional investors. The shares can be acquired by submitting
an order at offices of INVL Finasta, the lead manager of the issue, in Vilnius
or Kaunas, or at designated branch offices of Šiaulių Bankas in Vilnius,
Kaunas, Klaipėda or Šiauliai. 

The money that is raised will be used to partially finance or refinance the
acquisition of the 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 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 Šiaurės Miestelis, office and warehouse premises in Kirtimai, and
the Dommo Business Park manufacturing, warehouse and office complex beside the
Riga bypass. The company’s shares are traded on the NASDAQ Vilnius exchange. 


         Person authorised to provide additional information:
         CEO Egidijus Damulis
         E-mail: Egidijus.damulis@invl.com

Attachments:

INVL Baltic Real Estate_fact sheet_2015_IVQ.pdf