INVL Baltic Real Estate

Investor Presentation • Mar 19, 2024

Activity: operating since 1997, real estate investment company INVL Baltic Real Estate seeks to ensure the growth of leasing income and to profit on investments in commercial real estate.

Shares: listed on the Baltic Secondary List of Nasdaq Vilnius stock exchange since 2014.

Asset under management: At the end of 2023 about 32,000 sq. m. of real estate in Vilnius and Riga – offices and commercial premises, warehouse properties. These properties generate stable cash flows and most of them have high occupancy rates. In addition, some of them have further development potential.

Management of the company: INVL Baltic Real Estate enabling to engage in the closed-ended type investment company's activities under the Republic of Lithuania Collective investment undertakings act. The special closed-ended type real estate investment company will work 30 years from receiving the special closed-ended real estate investment company license, the term of company's activity may be further extended for a period of no longer than 20 years. Upon receipt of the license, the company's management was transferred to the Management company INVL Asset Management.

INVL Baltic Real Estate growth of net asset value, EUR/share and dividend allocation

Comment made by INVL Asset Management real estate fund manager Vytautas Bakšinskas

Last year has been extremely successful for the Company in achieving long-term operational results.

INVL Baltic Real Estate's consolidated net operating income from its own properties in 2023 amounted to 2.4 million euros or 19 per cent more than in 2022 (2.03 million euros). INVL Baltic Real Estate's consolidated income in 2023 comprised 3.6 million euros or 6 per cent more than in 2022 (3.4 million euros), the consolidated rental income from own property increased by 16 per cent to 2.2 million euros.

The group's net profit in 2023 reached 0.7 million euros, the value of assets under management increased by 5.6 million euros in 2023, and at the end of the year amounted to 42.1 million euros. The value of equity at the end of the year reached 23.52 million euros. The equity value per share was 2.92 euros and increased by 3 per cent (after assessing the dividends paid in 2023) during the year.

Last year was significant in the development of the object on Vilniaus st. 37 – in April, the maintenance and repair works of the object have been started, upon completion of which at the end of 2024, we will offer to the market about 2,200 sq.m of leased space on the first and second floors of a high-class office building and catering facilities on the ground floor.

Last year, we made significant progress in the design of the reconstruction of the buildings located at the intersection of Palangos and Vilniaus streets in the capital. Currently, together with the design company Viltekta, we are about to complete the preparations for the technical project of reconstruction of the buildings. We plan that after the reconstruction, the above-ground area of the complex should increase by approximately 3,600 sq. m.

We are glad that Talent Garden Vilnius managed to maintain the maximum level of occupancy of the space for the fourth year in a row and continuously improve its financial results. Thanks to the successful operations of Talent Garden Vilnius and other lease agreements signed in previous periods, in 2023, the net rental income of the object on Palangos st. 4 / Vilniaus st. 33 increased by 19 per cent compared to 2022, and amounted to 1.5 million euros.

In 2023, the premises managed by INVL Baltic Real Estate were characterised by a high occupancy rate and improving operating results. We are glad that our customers continue to remain loyal and trust INVL Baltic Real Estate as a reliable and long-term partner. In the coming years, we will continue to meet the expectations of our customers and increase the value for investors.

Portfolio, thousand EUR 31.12.2021 31.12.2022 31.12.2023 Operational Property investments 22,990 26,595 31,069 Property Investment redevelopment 2,630 4,898 5,951 Other investment properties 3,996 4,934 5,038 TOTAL PROPERTY VALUE 29,616 36,427 42,058 Rent Income from own properties during 12 months period 1,694 1,919 2,217 NOI (Net Operating Income) from own properties during 12 months period 1,615 2,030 2,424 NLA (Net Leasable Area), sq.m. 24,200 22,850 25,800 Balance sheet, million EUR 31.12.2021 31.12.2022 31.12.2023 Investment properties 29.62 36.43 42.06 Cash 1.90 1.28 1.28 Other assets 1.51 1.31 1.22 TOTAL ASSETS 33.03 39.02 44.56 Borrowings from credit institutions 9.14 12.82 18.64 Other liabilities 3.60 2.66 2.4 TOTAL LIABILITIES 12.74 15.48 21.04 EQUITY 20.29 23.54 23.52 Equity per share EUR 2.52 EUR 2.92 EUR 2.92 Profit (loss) statement, million EUR 01.01.2021- 31.12.2021 01.01.2022- 31.12.2022 01.01.2023- 31.12.2023 Revenue 2.73 3.41 3.63 from own properties 1.69 1.92 2,22 other revenue 1.04 1.49 1.41 Investment property revaluation 2.85 3.98 (0.2) Net profit 3.40 4.22 0.7 Earnings per share EUR 0.37 EUR 0.52 EUR 0.09 Borrowings 31.12.2021 31.12.2022 31.12.2023 Borrowings, thousand EUR 9,142 12,817 18,644 Borrowings to value of investment properties* 30.87 35.19 44.33 Gearing ratio* 0.26 0.33 0.42 Interest coverage ratio* 3.73 3.63 1.53 Bank's Debt Service Coverage Ratio* 1.61 1.74 1.14

Key information of 2023

EQUITY,

	Office building Palangos str. 4/ Vilniaus str. 33 Vilnius	Building Vilniaus str. 37, Vilnius	Building of Pramogų bankas A. Stulginskio str. 8 Vilnius	"Žygis Business centre Žygio str. 97 Vilnius	"Dommo business park" Riga Latvia
Acquired	2006	2022	2023	2006	2015
Net leasable area	6,900 sq. m.	260 sq. m.	3,000 sq. m.	2,900 sq. m.	12,800 sq. m.
Property value	EUR 17.5 million	EUR 6.1 million	EUR 4.2 million	EUR 3.9 million	EUR 10.3 million
Occupancy	91%	100%	85%	100%	100%

* https://bre.invl.com/en/for-investors/financial-information-and-reports/

** The 257 sq. m. building area, which is suitable for rent is leased. The other building area is being reconstructed.