The real estate investment company INVL Baltic Real Estate will decide about allocating dividends for 2018 at the general meeting of shareholders which will take place on 26 April. Based on the proposal of the company’s management company, it is proposed that shareholders be paid dividends of EUR 0.13 per share for 2018. The total amount allocated to dividends would be EUR 1.71 million. The dividend yield, based on the price of the company’s shares on the Nasdaq Vilnius exchange on 4 April, would be 5.16%
Also presented to the shareholders meeting for approval, besides the distribution of the profit that INVL Baltic Real Estate earned in 2018, will be the company’s 2018 audited financial report, an updated agreement on depository services, and the company’s updated articles of association. The possibility for the company to buy back its own shares will be considered as well.
Approval of permission for the company to acquire its own shares is proposed in light of the version of the Law on Collective Investment Undertakings that took effect on 1 February this year. If the shareholders meeting approves the possibility, the maximum number of shares that could be acquired would be no more than one-tenth of the company’s share capital, or 1.315 million shares.
Buy-back of shares would be possible for 18 months from the date of the decision. The maximum acquisition price would be equal to INVL Baltic Real Estate’s last published net asset value per share, and the minimum would be 1 euro. The company would be able to make use of the buy-back possibility once a corresponding decision is made by the management company.
It is also envisaged that own shares acquired by INVL Baltic Real Estate could be cancelled by a decision of the general meeting of shareholders or sold at the decision of the management company under the condition that their minimum sale price be equal to the acquisition price and the manner of sale ensure equal opportunities for all shareholders to acquire the shares.
Updated articles of association of INVL Baltic Real Estate will also be submitted to the 26 April shareholders meeting for approval. They have been prepared on the basis of the new versions of the Law on Companies and the Law on Collective Investment Undertakings and will take effect when, after being confirmed by the meeting of shareholders, they are approved by the Bank of Lithuania and registered at the Centre of Registers.
INVL Baltic Real Estate’s audited consolidated net profit for 2018 was EUR 3.17 million and was 11.4% smaller than in 2017. The company’s consolidated equity at the end of last year was EUR 35.3 million. Equity per share was EUR 2.69 and increased 9.7% from a year earlier (also taking into account dividends that were paid out). INVL Baltic Real Estate’s consolidated net operating income from its properties totalled EUR 3 million in 2018, or 13% more than in 2017.
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.