Special Closed Ended Type Real Estate Investment INVL BALTIC REAL ESTATE : INVL Baltic Real Estate plans to pay EUR 1 million of dividends to shareholders
The real estate investment company INVL Baltic Real Estate proposes to distribute a dividend of EUR 1 million or EUR 0.12 per share to the shareholders for 2020. These and other decisions will be proposed for adoption at a general meeting of the company’s shareholders on April 29, 2021.
‘Thanks to both the successful exits last year and the successful real estate transformations, we have once again proven that we are able to significantly increase the value of assets and offer our investors a long-term return. The company has amassed free cash that enables it to pay a dividend that is higher than the EUR 0.09 foreseen in its dividend policy, ”says Vytautas Bakšinskas, member of INVL Baltic Real Estate’s investment committee.
Dividends are paid out within one month of the resolution being passed. These persons have the right to receive those who are shareholders of INVL Baltic Real Estate at the end of the business day on May 13th of this year. Based on the share price on April 7, 2021, the dividend yield is 5%.
For approval at the meeting, procedures for the acquisition of own shares and the transfer of EUR 4.3 million from the revenue reserves to a reserve for will also be proposed the acquisition of own shares.
According to Vytautas Bakšinskas, the right to buy back own shares is used if the share price on the market is below the net asset value (NAV). This offers shareholders additional liquidity opportunities. If INVL Baltic Real Estate purchases shares for less than the net asset value, the value of the remaining shares should increase.
It is proposed to set the maximum repurchase price per share at the last published net asset value per share of INVL Baltic Real Estate and the minimum at EUR 1.45. For the maximum number of shares that can be acquired, it is proposed that the treasury shares held by INVL Baltic Real Estate may not exceed one tenth of the company’s share capital.
In order to cancel 5,088,586 common shares acquired by INVL Baltic Real Estate in the course of share buyback processes, it was proposed to reduce the company’s share capital from EUR 19.1 million to EUR 11.7 million by canceling the own shares acquired by the company will.
For the formation at the general meeting, it is also proposed to form a supervisory board of INVL Baltic Real Estate, whose proposed members are Raimondas Rajeckas, the CFO of Invalda INVL, Audrius Matikiūnas, the head of INVL Asset Management’s Legal, and Product Management Team and Eglė Surplienė, an asset manager at Gerovės Valdymas with more than 25 years of experience in the Lithuanian financial market.
The members of the Supervisory Board can take office if the Bank of Lithuania approves their candidacies.
INVL Baltic Real Estate had audited net profit of EUR 5.42 million in 2020The company’s consolidated equity amounted to EUR 28.87 million or EUR 2.21 per share at the end of 2020, an increase of 12.2% compared to the end of 2019 (also taking into account dividend payments).
INVL Baltic Real Estate owns properties in Vilnius and Riga: office buildings in the old town of the Lithuanian capital on Vilniaus Street and in Miestelis in Šiaur as well as the production, warehouse and office complex Dommo Business Park next to the Riga bypass. The company’s properties were 72% to 100% full at the end of the year.
INVL Baltic Real Estate’s real estate holdings currently have a total area of 26,000 m². and a value of EUR 24.13 million.
Since its founding as a collective investment company (on December 22, 2016), INVL Baltic Real Estate has been one of the Baltic real estate funds open to private investors with the highest stable returns. The fund is a closed investment company. The management of the company was taken over by INVL Asset Management, one of the leading Lithuanian asset management companies. The company will operate as a closed-end investment company until 2046 and can be extended for a further 20 years.