Real estate investment company INVL Baltic Real Estate’s consolidated net profit for the first half of this year was EUR 750 000 and was 19% less than in the same period of 2020. The company’s consolidated equity at the end of June this year was EUR 17.6 million, or EUR 2.19 per share, and increased 23.5% compared to the end of the first half of 2020 (also taking into account dividends that were paid).
INVL Baltic Real Estate’s consolidated net operating incoming from its properties in the first half of this year was EUR 689 000, or 46.2% less than in the same period last year. The company’s consolidated revenue was 46% less than in the first half of last year and totalled EUR 1.2 million. Of that amount, consolidated operating income from property holdings decreased 50.8% to EUR 830 000. The decrease in operating income was due to the sale transactions for the IBC and the Vilnius Gates business centres which were completed last year.
The revenue of INVL Baltic Real Estate’s biggest property holding, the office building at Palangos St. 4 in Vilnius which houses the Talent Garden Vilnius coworking space operated by the company, totalled EUR 753 000 in the first half of the year, or 33.7% more than in the same period last year.
“The property had occupancy of 97% at the end of the first half of the year. Despite the quarantine restrictions in place in the country, the extremely successful operations of Talent Garden Vilnius and high occupancy levels made it possible to achieve significant growth of operating income,” says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate.
The company’s Žygis Business Centre property at Žygio St. 97 in Vilnius had revenue of EUR 148 000 in the first half of 2021, or 11.2% more than in the same period of 2020.
“Occupancy at the property was 82% after the first half of this year and was up 10 percentage points compared with the end of the first quarter. Growth of both the operating income and the occupancy level were due to renovation work done on the building’s third floor and new lease agreements that were signed,” Bakšinskas says.
He says the company remains focused on increasing the value of its existing assets and is looking for new investment projects. The company is ready to invest in non-standard, creative solutions that would help earn a big return for investors and expand the real estate management business.
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 Dommo Business Park manufacturing, warehouse and office complex beside the Riga bypass. At year-end the company’s properties had occupancy of between 72% and 100%.
INVL Baltic Real Estate’s current asset holdings have a total area of 26 000 sq. m. and a value of EUR 24.7 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. 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 a further 20 years.