INVL Baltic Farmland, a company investing into agricultural land, is planning to allocate EUR 197 thousand or EUR 0.06 per share to the payment of the dividends
The Board of INVL Baltic Farmland is proposing this suggestion to the company’s shareholders meeting, which will be held on 24 March. Also, it suggests approving the dividend payment policy, which implies, that each year at least EUR 0.06 will be allocated to the payment of the dividends. In case net profit of the reporting period is larger than previously described share of the profit attributable for dividends, the board of the company taking into consideration a need for investments and working capital as well as other conditions can propose to pay as a dividend higher share of the profit than described earlier.
“Farmland is an asset, generating stable income, therefore the free cash should be addressed to the payment of the dividends”, – Darius Šulnis, director of INVL Baltic Farmland, said.
INVL Baltic Farmland also announced activity forecast of 2015. It is projected that the consolidated income will reach EUR 450 thousand and the net profit is expected to be around EUR 260 thousand. These predictions are based on the assumption that there will be no changes in land value and no farmland sale transactions.
Also it is proposed for the shareholders to approve an agreement, which says that the land administration of INVL Baltic Farmland subsidiaries would be transferred to INVL Farmland Management, a company owned by an investment and asset management company Invalda LT, under the contract. The proposal is to set annual management fee paid to INVL Farmland Management, UAB which shall not exceed 7 percent of income plus 0.5 percent of INVL Baltic Farmland, AB market capitalization, in case bad debt exceeds 5 percent of income, surplus shall be fully compensated by INVL Farmland Management, UAB. Additionally, set the success fee of 20 percent of the return in excess of minimal annual return of 5 percent plus inflation.
The authorised capital of INVL Baltic Farmland is planned to be reduced by canceling owned shares and at the same time changing nominal value per share to EUR.
INVL Baltic Farmland group owns about 3 thousand hactares of farmland in Lithuania, which is leased to farmers and agricultural companies. INVL Baltic Farmland shares are listed on NASDAQ Vilnius stock exchange, company’s equity amounts to EUR 9.9 million.