INVL Baltic Farmland, a company that invests in agricultural land, had revenue of EUR 575 000 in 2017 and an audited net profit of EUR 885 000. Compared to 2016, the group’s revenue grew 8.3 per cent, while net profit decreased 25.8 per cent. INVL Baltic Farmland’s equity capital at the end of 2017 was EUR 12 million. Equity per share was EUR 3.72 and, also taking into account the dividends paid out in 2017, increased 8 per cent during the year.
The value of INVL Baltic Farmland’s land holdings increased 5.1 per cent in the year to EUR 12.96 million, or EUR 4 300 per hectare. Valuation of the property was performed by the company Matininkai. Excluding the effects of property revaluation and related deferred profit tax and management fees, INVL Baltic Farmland’s profit would be EUR 350 000.
The company’s operating forecasts for last year, which assumed that the value of its land holdings would not change and there would be no land purchase or sale transactions, planned 2017 revenue at EUR 575 000 and net profit at EUR 350 000.
"We’re positive about the company’s results, which match the published forecast. The growing value of the property and a focus on long-term land rent agreements are grounds to expect further growth as well,” said Kristina Urbonienė, the director of INVL Farmland Management, which is the administrator of INVL Baltic Farmland’s land.
Based on the results achieved, the company’s board proposes approving a dividend per share of EUR 0.15 for 2017, allocating a total of EUR 484 000 for dividends. That would be an increase of 2.14 times compared with the amount of dividends paid out for 2016. The board also proposes changing the company’s dividend policy to increase the dividend per share it envisages from EUR 0.06 to EUR 0.10.
“INVL Baltic Farmland’s results in recent years provide a basis for increasing the dividends envisaged for allocation in the dividend policy, thus giving greater value to shareholders,” said Alvydas Banys, the chairman of the board of INVL Baltic Farmland. Decisions on the payment of dividends and the change to the dividend policy will be considered at the ordinary general meeting of shareholders on 10 April.
The board is proposing as well that shareholders approve an authorisation for INVL Baltic Farmland to acquire its own shares. The proposed minimum share price is EUR 3 and the maximum EUR 5.
The company’s operating forecasts for this year have also been published. Considering the rental agreements in effect, INVL Baltic Farmland plans during 2018 to receive EUR 609 000 of revenue and to earn a consolidated net profit of EUR 360 000. These forecasts assume that during 2018 the value of the company’s land holdings will not change and there will be no land purchase or sale transactions.
INVL Baltic Farmland is listed on the Nasdaq Vilnius exchange. Its subsidiaries own 3 000 hectares of agricultural land in Lithuania which is rented out to agriculture companies and farmers.