INVL Baltic Real Estate Reports Impressive Half-Year Results for 2024
In the first half of 2024, INVL Baltic Real Estate (the Company) group reported an unaudited consolidated net profit of EUR 0.82 million, alongside revenues of EUR 2.05 million. This represents a significant improvement compared to the same period in 2023, when the consolidated net profit was EUR 0.27 million, with revenue at EUR 1.71 million.
Profit and Revenue Growth
INVL Baltic Real Estate, a real estate investment firm, achieved a consolidated net profit of EUR 0.82 million in the first half of this year, marking a threefold increase from the EUR 0.27 million net profit recorded last year.
Operational Achievements
“We have successfully achieved our goals to improve the company’s operational performance through investments in commercial real estate, maintain high occupancy rates at our properties, and advance reconstruction and design projects in the Old Town,” says Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which oversees INVL Baltic Real Estate.
Financial Overview
As of the end of June 2024, the Company’s consolidated equity stood at EUR 23.61 million, with equity per share experiencing a 5.6% increase over the year, reaching EUR 2.93.
Growth in Investment Properties
By the end of the first half of 2024, the total value of INVL Baltic Real Estate’s investment properties rose to EUR 44.03 million, reflecting a 6.7% increase from EUR 41.28 million a year earlier.
Increased Property Income
Consolidated revenue saw a 19.7% rise in the first half of 2024, reaching EUR 2.05 million. Particularly noteworthy is the 26.4% surge in consolidated rental income from owned properties, which climbed to EUR 1.29 million. The consolidated net operating income from properties was EUR 1.45 million, showing a 31.2% increase compared to January-June 2023.
Property Performance Insights
The net operating income from the largest asset in the portfolio, an office building located at Palangos St. 4 in Vilnius Old Town, which houses the Talent Garden coworking space, rose by 13.6% in the first half of 2024, totaling EUR 0.84 million. Additionally, rental revenue from the Žygis Business Centre increased by 7.7%, amounting to EUR 0.2 million.
High Occupancy Levels
As of the end of June, both the Talent Garden Vilnius and the Žygis Business Centre reported exceptionally high occupancy rates of 99% and 100%, respectively.
Ongoing Construction and Renovation
Vytautas Bakšinskas highlighted that during the first half of this year, the company worked with contractor Sivysta to continue reconstruction efforts on the building at Vilniaus St. 37, which is expected to be completed in the last quarter of the year. Design work for renovations on various properties, including those at Vilniaus St. 37 and Palangos St. 4/Vilniaus St. 33, is progressing swiftly. Renovation design work is also ongoing for the Pramog? Bankas building, which was acquired last year in Vilnius.
Looking Ahead
“INVL Baltic Real Estate is committed to continuing its profitable investments in commercial real estate by increasing rental income and optimizing costs. The characteristics of the company’s property holdings suggest strong potential for ongoing growth in asset value,” Bakšinskas adds.
About INVL Baltic Real Estate
INVL Baltic Real Estate manages a diverse portfolio of real estate properties, including office buildings on Vilniaus Street and in Šiaur?s Miestelis, the Pramog? Bankas in central Vilnius, and the expansive 55-ha Dommo Logistics and Industrial Park located near major highway intersections. As of June 2024, the company’s properties achieved occupancy rates ranging from 85% to 100%.
Current Property Holdings
At present, INVL Baltic Real Estate's total property area is 32,100 sq. m., with an overall property value of EUR 44.03 million as of the end of June 2024.
About INVL Asset Management
INVL Asset Management is recognized as the leading alternative asset manager in the Baltic region, dedicated to delivering superior risk-adjusted returns to investors while positively influencing regional economic growth. With over 30 years of experience, the management firm oversees assets valued at EUR 1 billion across a variety of asset classes, including private equity, forests, agricultural land, renewable energy, and private debt.
Contact Information
For additional inquiries, please contact:
Real Estate Fund Manager of Management Company
Vytautas Bakšinskas
E-mail: vytautas.baksinskas@invl.com
Frequently Asked Questions
What is the net profit reported by INVL Baltic Real Estate for the first half of 2024?
The reported net profit for the first half of 2024 is EUR 0.82 million.
How much did the company’s revenue increase from the first half of 2023 to 2024?
The revenue increased by 19.7%, reaching EUR 2.05 million.
What factors contributed to the growth in net operating income?
The growth is attributed to increased rental income and high occupancy rates at their properties.
What are INVL Baltic Real Estate's plans for property renovations?
The company is continuing its renovation efforts on various properties in Vilnius, with plans for completion in the coming quarters.
What is the future outlook for INVL Baltic Real Estate?
The company aims to enhance rental income and optimize costs to achieve continuous growth in asset value.
