The real estate investment company INVL Baltic Real Estate had a consolidated net profit of EUR 2.1 million in the first nine months of this year, 84% more than in the same period last year when its net profit was EUR 1.14 million. The results for this year were positively impacted by a revaluation of real estate holdings in the second quarter which increased their value by EUR 1.7 million.
The company’s consolidated equity at the end of September this year was EUR 21.42 million. Equity per share was EUR 2.66 and grew 24% from a year earlier (also taking into account dividends that were paid).
INVL Baltic Real Estate’s properties continued to maintain a high rate of occupancy and increased their operating income. The company’s consolidated revenue grew 30% over the period of comparison to EUR 2.55 million, of which consolidated rent income from property holdings increased 14% to EUR 1.44 million. INVL Baltic Real Estate’s consolidated net operating income from its properties in nine months of 2022 was EUR 1.44 million and was 22% more than in the same period last year (when it was EUR 1.18 million).
The largest property that INVL Baltic Real Estate owns is the office building at Palangos Street 4 in Vilnius, which contains the Talent Garden Vilnius coworking space that the company operates. That building’s income in the first nine months of the year was EUR 1.69 million, or 35% more than in the same period of 2021. The Žygis Business Centre’s income increased 49% over the same one-year period to EUR 0.35 million. The occupancy of both properties at the end of September 2022 was 91%-100%.
The value of INVL Baltic Real Estate’s investment property holdings at the end of September was 33.94 million and was 25% more than a year earlier (when it was EUR 27.1 million).
“Since the start of the year we’ve advanced significantly with the design of the reconstruction project for the buildings at the intersection of Palangos and Vilniaus Streets. We publicly presented the design for the project at the start of the year. The Vilnius City municipality later approved those proposals and issued the design requirements for renovating the complex. We are currently working with the Viltekta design firm to prepare the technical design for reconstruction of the buildings,” says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
He says targets have also been met in the development of the property at Vilniaus Street 37. Studies of this distinctive building in the protected Old Town of Vilnius have been completed, details of the site’s valuable attributes have been updated, and the preparation of reconstruction and management projects has begun.
“During the studies of the building, valuable wall and ceiling paintings were found, and we started work to preserve those paintings already at the end of the summer. We plan to publicly present the design proposals for reconstruction of the building, which is subject to strict heritage protection requirements, by the end of this year,” Vytautas Bakšinskas notes.
In early July, Dommo Grupa, a subsidiary of INVL Baltic Real Estate which is developing the 58-hectare Dommo Logistics and Industrial Park alongside Riga, sold a 3.4-ha plot of land for EUR 0.4 million. This industrial park in Latvia is attractive for those seeking built-to-suit solutions (where a property developer builds a facility for a client under a long-term lease agreement) and land that already has infrastructure in place and an approved detailed plan for developing commercial real estate projects of various types and sizes.
About INVL Baltic Real Estate
INVL Baltic Real Estate owns real estate in Vilnius and Riga: office buildings in the Old Town of the Lithuanian capital on Vilniaus Street and in Šiaurės Miestelis, and the 55-ha Dommo Logistics and Industrial Park by the juncture of highway A8 and the A5 Riga bypass road. The company’s properties had occupancies of 91% to 100% at the end of September 2022.
INVL Baltic Real Estate currently owns properties with a total area of 28,000 sq. m. and a value of EUR 33.94 million.
Since its launch as a collective investment undertaking (on 22 December 2016), INVL Baltic Real Estate has been one of the Baltic real estate funds open to retail investors with the highest stable returns. The fund operates as a closed-end investment company. The company is managed by INVL, the leading investment management and life insurance group in the Baltic region. INVL Baltic Real Estate will operate as a closed-end investment company until 2046, with extension possible for a further 20 years.