INVL Baltic Real Estate - Notification on material event

Presentation of INVL Baltic Real Estate

INVL Baltic Real Estate announces a presentation that will be used for the meetings with investors.

Additional information:

The real estate investment company INVL Baltic Real Estate has announced the forecasts stating that the 2017 net operating income of the company will amount to 2.57 million euro, which is 28 per cent higher than in 2016. Meanwhile, comparing with 2017 forecast, it is calculated, that the company's estimated net operating income indicator for 2018 will climb by 43 per cent totalling 3.69 million euro. The compilation of this forecast was evaluated by professional services firm PricewaterhouseCoopers UAB.

Furthermore, it is forecasted that at the end of 2017, the net assets value per share of INVL Baltic Real Estate will comprise EUR 0.5155, which is 9 per cent above this indicator at the end of 2016. In the end of 2018, after evaluation of the forecast for allocation EUR 0.026 dividends per share, this number will reach EUR 0.5285.

“The past two years were the time of the company’s growth. Having succeeded to attract tenants to Vilniaus Vartai business centre, its reported occupancy rate at the end of November was 92 per cent, which will result in a considerable increase in rental income in 2018. Other objects under our management have also been successfully developed. We believe in the future of our real estate portfolio. This is based on the prime location – by asset value, 80 per cent of the managed objects are situated in the central part of Vilnius,” said Vytautas Bakšinskas, the Real Estate Fund Manager at INVL Asset Management, which manages INVL Baltic Real Estate.

The share liquidity of INVL Baltic Real Estate is also expected to increase in the coming year. Invalda INVL has announced that it is planning to dispose of up to 22 per cent of the company’s shares it manages, thus stimulating increase of the number of free float shares from 16 to 38 per cent.

“We abide by the principle that together with customers we invest into the products we create and manage, thus, we will retain more than 10 per cent of INVL Baltic Real Estate shares. The planned distribution of shares is expected to raise the liquidity of INVL Baltic Real Estate shares,” added Darius Šulnis, President of Invalda INVL.

Up to 22 per cent block of INVL Baltic Real Estate, shares, which Invalda INVL intends to dispose, was worth 6.9 million euro according to the Nasdaq Vilnius stock market prices on 20^th of December this year. It is expected that already next year, the possibility to acquire the shares of INVL Baltic Real Estate will be offered to the institutional investors, and later, upon approval of the company’s prospectus by the Bank of Lithuania establishing the price and distribution procedure of the shares, the shares would be available for acquisition to the retail investors as well.

Moreover, INVL Baltic Real Estate proposes more than doubling the size of the dividends paid, i.e. from 0.012 to 0.026 euro per share. This decision is submitted for approval by the general meeting of company’s shareholders that will take place on December 29.

INVL Baltic Real Estate’s consolidated net profit for the first three quarters of this year was EUR 2.1 million and was 2.3 times larger than in the same period last year. The company’s consolidated equity value per share increased 19.5 per cent from a year earlier to EUR 0.49 per share at the end of September 2017 (equity per share at the end of September 2016 was EUR 0.42, also accounting for dividends of EUR 0.012 per share that were paid). INVL Baltic Real Estate’s consolidated net operating income from the properties it owns was EUR 1.9 million in three quarters of this year and compared to the same period last year increased 5.1 per cent.

INVL Baltic Real Estate manages 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. As at November 30 of this year, the company’s property holdings had a total area of 55 000 square metres and a value of EUR 56 million.
 
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.

 

         The person authorized to provide additional information:
         Real Estate Fund Manager of the Management Company
         Vytautas Bakšinskas
         E-mail vytautas.baksinskas@invl.com

Attachments:

INVL Baltic Real Estate_presentation for investors.pdf