INVL Baltic RE has first-half net profit of 1.5 m Euros
The real estate investment company INVL Baltic Real Estate’s consolidated net profit for the first half of this year was of EURO 1.5 million and was more than 2.5 times greater than in January-june 2016. The company’s consolidated equity value per share increased 20 per cent from a year earlier to EUR 0.48 per share at the end of June 2017 (equity per share at the end of June 2016 was EUR 0.41, also taking into account dividends of EUR 0.012 per share that were paid).
“We’re pleased that the active work and investments reconstructing the Vilnius Gates Business Centre have brought the expected results, leading to an increase of about 1 million Euros in this property’s value. In the second half of the year, once the Vilnius Gates renewal is complete, we’ll see the final results of the work done over the past year and a half. We don’t intend to stop and will continue working actively to boost the value and leasing income of property holdings,” said Vytautas Baksinskas, Real Estate Fund Manager at INVL Asset Management, which manages INVL Baltic Real Estate.
INVL Baltic Real Estate’s consolidated net operating income from the properties it owns was EUR 1.2 million in the first half of this year and increased 2.7 per cent compared to the same period last year.
“The company’s financial results show that active work with property holdings pays off and the chosen operating strategy is correct. Some of what was done in the first half of this year will be reflected in the results later, since most of the new leases and renewal agreements that were signed will take effect in the second half of the year. So the current half-year can be expected to be even more successful for INVL Baltic Real Estate,” Vytautas Baksinskas said.
The company’s consolidated revenue in Januaryjune was EUR 3.3 million and grew 6.8 per cent compared with the first half of 2016. Of that, EUR 1.9 million was consolidated leasing income from owned properties, which was up 6.8 per cent.
In late July, the company announced it had signed an agreement on the sale of 3,000 square metres of office and warehouse premises on Kirtimų Street in Vilnius. The transaction, completion of which is planned by October, has a value of EUR 1 million. The property was valued at EUR 0.8 million at the end of 2016, so the transaction will have a positive impact of EUR 0.2 million in the 2017 results.
INVL Baltic Real Estate also 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 Siaures Miestelis, and the Dommo Business Park manufacturing, warehouse and office complex beside the Riga bypass. As of June 30 of this year, the company’s property holdings, including the building on Kirtimu Street in Vilnius, had a total area of 58,000 square metres and a value of EUR 54.1 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.
INVL Baltic Real Estate information
On August 22, 2017, Lords LB Baltic Fund IV, real estate investment fund managed by the investment management company Lords LB Asset Management, signed a purchase agreement for the shopping centre GO9. The building of more than 12,000 square meters located on Vilnius Gedimino Avenue accommodates fashion store H&M, bookstore Vaga and supermarket RIMI among others.
The GO9 shopping centre is the fourth purchase of the fund since the start of its operation. The fund has acquired the object from the East Capital Baltic Property Fund II of the investment management company East Capital.
According to Manfredas Darguzis, the manager of Lords LB Baltic Fund IV, GO9 building is in a very good location and perfectly meets the investment strategy of the fund.
“This acquisition fits the strategy of Lords LB Baltic Fund IV perfectly. The object is in the very center of Vilnius and we see a great potential for growth in the long run perspective. The shopping centre has every opportunity to become more attractive for both residents and guests of Vilnius,” said Darguzis.
The closed-end real estate fund Lords LB Baltic Fund IV managed by investment management company “Lords LB Asset Management” was launched in 2015, with a goal to acquire cash-generating commercial real estate in the Baltic States.
The first property of the fund – business centre ‘k29’ on Konstitucijos Avenue in Vilnius – was opened three years ago. In March 2016, the assets of the fund were supplemented by Comfort Hotel LT located on Kauno Street in Vilnius, and another addition was made in November – the EU House in Tallinn centre.
With the acquisition of the shopping centre GO9, the assets managed by Lords LB Baltic Fund IV reached more than 125 million Euros. The fund will continue to look for investment opportunities in the Baltic States. The investment period of the fund will continue until September 2018, and the duration of the fund is up to 2022, with the possibility of extension for another 2 years.
On the acquisition of the GO9 shopping centre, Lords LB Asset Management were consulted by Colliers International Advisors, Ellex Valiunas, Ernst&young Baltic and Caverion Lietuva. Acquisition is financed by Swedbank.
Lords LB Baltic Fund IV information