INVL Baltic Real Estate

Investor Presentation • Apr 28, 2023

Key information for 3 months 2023

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: about 28,000 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.

Main information about securities of the Company Shareholders votes (%)

ISIN code LT0000127151
Amount of shares, units	8,061,414
Nominal value per share, EUR	1.45
Share price, EUR (as of 31.03.2023)	2.24
Last approved dividends, EUR per share*	0.09
Consolidated equity, mln. EUR 23.75
Net asset value per share, EUR	2.95

*Dividends were assigned after the reporting period, so they are not reflected in the figures.

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

The net lease income of INVL Baltic Real Estate in the first quarter of the year amounted to €489 thousand or 4.86% more than in the corresponding period last year. The consolidated income of the company was 7% higher than in the first quarter of last year and amounted to €864 thousand, of which the consolidated lease income of their own objects increased by 10.7% to €505 thousand.

The largest facility managed by INVL Baltic Real Estate is an office building at Palangos g. 4 in Vilnius, where the company-managed co-working space "Talent Garden Vilnius" is located. The consolidated net lease income in the first quarter of the year amounted to €350 thousand or 5.4% more than in the corresponding period last year. At the end of the first quarter, the occupancy of the object reached 86%, and the occupancy of the "Talent Garden Vilnius" space reached 98%.

Another object managed by the Company – Žygis Business Centre – also significantly increased its lease income, which in the first quarter of the year amounted to €92 thousand or 7% more than in the corresponding period in the previous year.

In the first quarter of the year, we continued the design works of the planned reconstructions at Vilniaus g. 37 and Palangos g. 4/Vilniaus g. 33. In February, we received a permit for maintenance works for the object at Vilniaus g. 37, which allows for the repair and restoration of the protected parts of the building.

At the end of the quarter, a contract was concluded with the construction company Sivysta, which plans to start work at the beginning of the second quarter. At Palangos g. 4/Vilniaus g. 33 we continue to work together with the design company Viltekta on the technical project for the reconstruction of the buildings.

The Vilniaus g. 37 building maintenance and reconstruction works are expected to be completed in mid-2024. After completion of the reconstruction and maintenance works of the building, in which it is planned to invest about €3 million, INVL Baltic Real Estate will offer to the market about 2,100 sq. m. of high-end premises. On the second and third floors of the building there will be about 1,400 sq. m of office space, and on the first floor of the building three restaurant premises, the total area of which will be about 700 sq. m.

On 18 April, the General Meeting of Shareholders approved the dividends for the €0,09 per share, the total amount allocated to dividends is €0.725 million, while the dividend yield, considering the company's share price on the Nasdaq Vilnius stock exchange on 28 April, reaches 4%.

Key information for 3 months 2023

Portfolio, thousand EUR	31.03.2021	31.03.2022	31.03.2023
Operational Property investments	20,473	23,003	26,597
Property Investment redevelopment	-	2,730	5,037
Other investment properties	3,629	3,996	4,934
TOTAL PROPERTY VALUE	24,102	29,729
Rent Income from own properties during 3 months period	410	456	505
NOI (Net Operating Income) from own properties during 3 months period	317 514		489
NLA (Net Leasable Area), sq.m.	22,600 22,600		22,850
Balance sheet, million EUR	31.03.2021	31.03.2022	31.03.2023
Investment properties	24.10	29.73	36.57
Cash	4.98	1.70	1.22
Other assets	1.69	1.42	1.25
TOTAL ASSETS	30.77	32.85	39.04
Borrowings from credit institutions	9.40	9.06	12.91
Other liabilities	3.39	3.45	2.39
TOTAL LIABILITIES	12.79	12.51	15.30
EQUITY	17.98	20.34	23.75
Equity per share	EUR 2.23	EUR 2.52	EUR 2.95
Profit (loss) statement, million EUR	01.01.2021- 31.03.2021	01.01.2022- 31.03.2022	01.01.2023- 31.03.2023
Revenue	0.60	0.81	0.86
from own properties	0.41	0.46	0.51
other revenue	0.19	0.35	0.35
Net profit	0.12	0.05	0.2
Earnings per share	EUR 0.01	EUR 0.01	EUR 0.03
Borrowings	31.03.2021	31.03.2022	31.03.2023
Borrowings, thousand EUR	9,400	9,056	12,912
Borrowings to value of investment properties*	39.00	30.46	35.31
Gearing ratio*	0.2	0.27	0.33
Interest coverage ratio*	2.86	5.58	1.92
Bank's Debt Service Coverage Ratio*	1.24	2.34	1.12

Office building Palangos str. 4/ Vilniaus str. 33

Building Vilniaus str. 37, Vilnius

"Žygis Business centre Žygio str. 97 Vilnius

"Dommo business park"

Riga

	Vilnius			Latvia
Acquired	2006	2021 – 2022	2006	2015
Net leasable area	6,900 sq. m.	Total area 2,000 sq. m.	2,900 sq. m.	12,800 sq. m.
Property value	EUR 17.4 million	EUR 5.3 million	EUR 3.9 million	EUR 10 million
Occupancy	86%	100%**	96%	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

More information: www.invlbalticrealestate.com