INVL Baltic RE has first-half net profit of 1.5 m Eu­ros

The Baltic Times - - RE NEWS -

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

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