At the end of the third quarter of 2015, the value of the equity capital of Invalda INVL, one of the Baltic region’s leading asset management groups, was EUR 49.1 million, or EUR 4.19 per share. During the first three quarters, the group’s equity capital per share increased by 11.5% while profit was EUR 5.1 million, 16.4 % less than in the same period of 2014 (EUR 6.1 million).
Asset management business
Invalda INVL’s asset management companies INVL Asset Management in Lithuanian and Latvia and the administrative company INVL Farmland Management had EUR 307.5 million of assets under management at the end of September, or 11.7% more than at the end of 2014 (EUR 275.3 million). Revenue of Invalda INVL group companies from asset management and administration activities during 9 months of this year was EUR 2.4 million.
After completion in early October of the merger of INVL Asset Management, MP Pension Funds Baltic and INVL Fondai, it is INVL Asset Management that now operates in the market. “We’re actively expanding our asset management business, where INVL Asset Management serves as the group’s investment hub, providing services to both individuals and institutional investors,” said Darius Sulnis, the CEO of Invalda INVL.
Investments
Investments in related companies
The value of Invalda INVL’s investment in INVL Technology, of which it owns 15.65% of shares, was EUR 4.1 million at the end of September, while the recognized gain from changes in the value of the company’s shares was EUR 1.0 million.
Having completed the placement of a 10-million-euro share issue in July this year, INVL Technology, a company that invests in IT businesses, is currently seeking the status of a closed-end investment company. In September the company applied to the Bank of Lithuania for a license to operate as a closed-end investment company. After obtaining this status, management of the company will be transferred to INVL Asset Management.
Invalda INVL’s equity and debt investments in INVL Baltic Real Estate, of which it owns 12.7% of shares, were EUR 6.5 million as of the end of September. In 9 months of this year, interest of EUR 175 thousand was received from this investment, though changes in the value of the shares during the period led to an overall loss of EUR 0.4 million.
INVL Baltic Real Estate, a company that invests in real estate, at the start of October acquired 6,500 square metres of commercial property at the Vilnius Gates complex in the Lithuanian capital (address: Gyneju St. 14). Following this transaction, the company manages about 58,200 square metres of real estate premises in Vilnius and Riga.
Early next year, INVL Baltic Real Estate plans to issue and publicly offer shares with a value of EUR 10.071 million. “We expect this will interest not only professional investors, but also smaller ones. Recently there haven’t been many opportunities for people who want to invest smaller amounts, though investments in real estate are among the most attractive,” Darius Sulnis said. Proceeds from the new issue will be used to finance the acquisition of premises in the Vilnius Gates complex and to balance the company’s ratio of debt and equity capital before it becomes a closed-end investment company.
In late November, Invalda INVL made an official voluntary tender offer to buy up shares of INVL Baltic Real Estate. During the offer, shares may be sold by those shareholders who did not vote in favour of INVL Baltic Real Estate obtaining a license as a closed-end investment company.
Agriculture
The value of Invalda INVL’s investments in the Baltic agribusiness company Litagra, of which it owns 36.9% of shares, was EUR 16.7 million at the end of the third quarter, which is EUR 1.9 million or 12.5% more than at the start of the year. This year, in order to simplify the group’s structure and increase efficiency, the subsidiaries that provide services to farmers and those that operate grain elevators are being merged. The change should speed up decision-making and improve client care.
Banking activities
In September, Invalda INVL purchased newly issued shares of Siauliu Bankas for EUR 6.19 million and thus acquired a 6.79% stake in Siauliu Bankas. In 9 months of this year, Invalda INVL had a total gain of EUR 1.7 million from its transaction with Siauliu Bankas, which included the transfer to Siauliu Bankas of the shares of Bankas Finasta and the financial brokerage firm FMI Finasta, and from changes in the value of the shares of Siauliu Bankas. “We expect the value of Siauliu Bankas’s shares to continue rising on the basis of the bank’s successful operations,” said Invalda INVL”s CEO.
The transaction in which Invalda INVL acquired the newly issued Šiauliu Bankas shares was completed after Siauliu Bankas received approval from the Bank of Lithuania to increase its authorized capital and after related changes to the bank’s charter were registered at the Centre of Registers. Siauliu Bankas issued the shares to make settlement for the transfer by Invalda INVL to Siauliu Bankas of the shares of Bankas Finasta and the financial brokerage firm FMI Finasta.
Facility management
Companies of the Inservis facility management group, which Invalda INVL controls, were valued at EUR 4.4 million at the end of September, or 34% more than at the end of 2014. In 9 months of this year, EUR 237 thousand of dividends were allocated by these companies, while the gain from their change in value was EUR 1.1 million. As of the end of September, Inservis controlled the companies Priemiestis, Jurita, Advima and Naujosios Vilnios Turgaviete. In November, the group sold its shares in the latter company and Advima was merged with Inservis.
Other investments
As of the end of September, Invalda INVL had EUR 0.5 million of investments in other publicly traded shares as well as EUR 2.3 million of other investments and loans. Invalda INVL had total liabilities of EUR 0.8 million after three quarters of this year.
Invalda INVL, operating since 1991, is one of the leading asset management groups in the Baltic region. The companies it owns in Lithuania and Latvia manage more than 20 mutual, real estate and pension funds (2nd and 3rd pillar), alternative investments, individual portfolios, private equity and other financial instruments. Companies in the group manage more than EUR 300 million of assets entrusted to them by over 150,000 clients in Lithuania and Latvia as well as international investors. The shares of Invalda INVL have traded on the NASDAQ Baltic exchange since 1995.
For further information contact:
Darius Šulnis
E-mail [email protected]