INVL Baltic Real Estate

Investor Presentation • Dec 23, 2020

BALTIC INL | REAL ESTATE

INVL BALTIC REAL ESTATE

VALUE CREATION 2016-2020

*Based on the information available to INVL Baltic Real Estate as of 30 September 2020

OUR SUCCESS STORY: TRANSACTIONS AND FUND RETURN 2016 - 2020

BALTIC INIL REAL ESTATE

5

VALUE CREATED CONSISTENTLY since 2016

RETURN SINCE THE 2016 SECONDARY PUBLING OFFERING

6

ANNUAL RETURN (NAV growth + dividends)
Target >8%
12.6%	11.5%	9.4%	29.5%	10.7%
2016	2017	2018	2019	2020 Q3

DIVIDEND YIELD

Target 5% (since 2018)

3.0%	3.0% 2016-2017 target: 3%	6.5%	6.5%	775%	5.0%*
2016	2017	2018	2019	2020	2021-

Dividend yield = (dividends per share / SPO price (= EUR 2.00) x 100%)

SUCCESS STORY 1. IBC BUSINESS CENTRE SALE

• ▶ > A business centre in the central part of the city.
• ► > High long-term occupancy maintained with strong tenants mix.
• ► > Good timing of the sale made it possible to maximise the sale price, selling it with a development opportunity premium.

IBC Business Centre on Šeimyniškių Street

Address

Šeimyniškių Street

Location

In Vilnius's central business district, beside Konstitucijos Avenue. Neighbours include key government and finance institutions.

TSS

8

IN

NL	BALTIC REAL ESTATE		VALUE CREATION 2016-2020
Value during 2016 share offering EUR 22.3 mln			Sale price in 2020 EUR 33 mln
VALUE CREATION
	+ EUR 10.7 mln	+ EUR 4.5 mln	15%
	VALUE	NOI*	IRR*

*Net operating income

**Unlevered internal rate of return

SUCCESS STORY 2. VILNIUS GATES SALE

Vilnius Gates Business Centre on Gynėjų Street

Address Gynėjų Street 14, Vilnius

Location

10

Prestigious part of Vilnius beside the Lithuanian parliament

• ▶ > The property was acquired from a company in a complicated legal situation, which made it possible to get an attractive price.
• The object concept was fundamentally changed. Space for night ▲ clubs and restaurants was reconstructed, adapting it for offices and commercial needs.
• The façade was renovated, adding more windows and providing more ▲ comfort for employees working at the business centre.
• The property was sold to a target buyer that had added synergy with a ▲ neighbouring building it already owned, for an attractive price.

NOVIAN ROCKIt O Go Vilnius ETRONKA

Acquisition price in 2016

Investments

EUR 7.8 mln + EUR 3.7 mln

Sale price in 2020

EUR 20 min

VALUE CREATION
+ EUR 8.5 mln	+ EUR 2.4 mln	17%
VALUE	NOI*	IRR**

*Net operating income

**Unlevered internal rate of return

SUCCESS STORY 3. OFFICE BUILDING AT VILNIAUS STREET 33

NOI for 2021 forecast at EUR 0.7 mln.

12

• Gross leasable area increased 10% from 6 200 m2 to 6 800 m2.

• Strong tenants attracted and long-term lease agreements signed.

• Talent Garden coworking space launched.

Office building in the centre of Vilnius on Vilniaus Street

Address Vilniaus Street 33, Vilnius

Location Central Vilnius Old Town location

*Net operating income

**Unlevered internal rate of return

2

INVL BALTIC REAL ESTATE TODAY AND TOMORROW

TODAY AND TOMORROW. OFFICE BUILDING at Vilniaus street 33

• ▶ ㅤ We will continue reconstruction work, including 3rd floor renovation and renting out on better terms, and reorganisation of some commercial space on 1st floor.
• ► We will continue growth of the property's value after reconstruction work, the property's NOI for 2021 will reach EUR 0.7 mln.
• ► > We will prepare a long-term development plan for the property.

16

• ► Reorganization of the property will increase area by 3 500 m2.
• ▶ Commercial-use property
• ► Vilnius Old Town

transferGo"

Office building at Vilniaus Street 33
9 700 m² Total area	6 800 m² Leasable area	0.49 ha Land plot size	93% Occupancy	EUR 12.1 mln Market value of property in Q3 2020

TALENT GARDEN VILNIUS, Vilniaus Street 33

COWORKING SPACE

• ► coworking space with the Talent Garden franchise.
• ► A unique 2 200 m2 space in the Vilnius Old Town in which INVL Baltic Real Estate's investments totalled approx. EUR 2 mln.
• ► > Talent Garden Vilnius offers over 220 workplaces and a modern 175-seat conference and event hall.
• ▶ ㅤ At the end of Q3 2020, the space had 82% occupancy and was one of the highest between coworking spaces in Vilnius.
• ► In its first year of operations, Talent Garden Vilnius managed not only to attract clients who are well-known in the market and achieve a high level of occupancy but also to justify its name as a coworking space with the highest standards of quality.

TODAY AND TOMORROW. DOMMO BUSINESS PARK, Latvia

► We have the possibility to develop up to 200 000 m2.

20

▶ logistics or industrial-use facilities

REWICO Baltikum

BALTIC INL | REAL ESTATE

▶ We will work with potential tenants seeking opportunities

property's leasable area and market value.

to develop new buildings on the land and thus increase the

▶ tenant and the property generates a stable flow of rent.

DOMMO BUSINESS PARK
12 800 m² Total area	12 600 m² Leasable area	58.21 ha Land plot size	100% Occupancy	EUR 8.4 min Market value of property in Q3 2020

TODAY AND TOMORROW. ŽYGIO BUSINESS CENTRE, Žygio Street 97A

22

• Completion of 3rd-floor renovation work in Q1 2021 and leasing of free space will bring renovation of the property to completion.
• Long-term lease agreements are signed with the building's main tenants and the property generates a stable flow of rent.

IP

	BALTIC NL REAL ESTATE	VALUE CREATION 2016-2020	23
1

ŽYGIS BUSINESS CENTRE
3 200 m² Total area	2 600 m- Leasable area	0.4 ha Land plot size	69% Occupancy	EUR 3 mln Market value of property in Q3 2020

3

INVL BALTIC REAL ESTATE: EFFICIENT AND CONVENIENT WAY TO INVEST IN COMMERCIAL RE

na
Total
Total Total

A CONVENIENT INVESTMENT FORM

25

Return	Dividends	Liquidity	Oversight	Operational efficiency	Efficient capital structure	Management fee	Performance fee
Target annual return of 8%+* incl. 5% annual dividends **	Dividend yield of roughly 5% as per approved dividend policy	Listed NASDAQ	Supervised by the Bank of Lithuania Audited by PWC	A team of professionals handles RE search, acquisition, development, management, and sale	Balanced use of debt capital ***	1% of capitalisation	20% (if minimum annual return of 8% exceeded)

* These projections are not reliable indicators of future performance. * As per the dividend policy approved on 9 April 2020, the leverage ratio was 4%.

INVL BALTIC REAL ESTATE ADDITIONAL OPPORTUNITIES

AN EXPERIENCED TEAM

DEVELOPMENT, FINANCING, ACQUISITION

Vytautas Bakšinskas

Committee member

More than 10 years working with real estate investments and over 7 years of management experience. As the INVL Baltic Real Estate fund manager, ensures development of the fund's RE holdings and seeks profitable exit deals and promising new acquisitions that would Fund manager, Investment increase the value of the fund's assets.

Gailė Butėnaitė -Lapienienė

RENT AND PROPERTY MANAGEMENT

Gabrielė Kvedaraitė

Diana Manžurinaitė

The staff of Talent Garden Vilnius look after more than 2 000 m2 of space, ensuring the highest possible occupancy level and everything that's needed for smooth, convenient work. They also coordinate the varied events held in the space for

startups, investors, and the public.

Talent Garden Vilnius

coworking space staff

Andrius Daukšas

Investment manager, Investment Committee member

With the Invalda INVL group for 16 years, more than 8 years of RE investment experienced. Looks after INVL Baltic Real Estate's new investments and search for financing to ensure stable growth of the fund's asset holdings.

These asset managers with almost 20 years of experience look after the maintenance of more than 25 800 m2 of real estate and the leasing of office space and signing of lease agreements, and by handling everyday facility maintenance issues, ensure smooth and convenient working conditions.

INVL Baltic Real Estate

asset managers

Rolanda Kemeklienė

28

MANAGEMENT COMPANY EXECUTIVES

Laura Križinauskienė

CEO

Darius Šulnis

Chairman of the Board

Nerijus Drobavičius

Member of the Board

Vytautas Plunksnis

Member of the Board

• This presentation is marketing material of an informational nature which is not and cannot be ▲ construed as an offer to buy shares, an investment recommendation, or investment research. The company is not responsible for any third-party decisions made on the basis of information provided solely in this presentation and does not assume responsibility for any expenses, or direct or indirect losses, which occur upon using solely this information provided cannot be the basis for any later concluded transaction.
• Investments in shares of a closed-end investment company (hereinafter CEIC) are associated ▲ with investment risk. The value of the company's shares can both rise and fall, and you may recover less than you invested or even lose the entire invested amount. Past results only show the changes in the value of a company's shares over a past period but do not guarantee future performance.
• ► The information provided does not encompass all the information disclosed by the company and should be read together with the company's publicly announced financial information. The financial data provided should be evaluated together with the financial statements. The data presented reflect the situation of a period in the past, and the results of a past period are not a reliable indicator of future performance.
• Before making a decision to invest, you should personally or with the help of investment advisers assess the selected CEIC's investment strategy, the applicable fees, and all investment-related risks, and carefully read the CEIC's prospectus, rules and key investor information document. These documents are available for review on the website bre.invl.com
• The CEIC does not guarantee the profitability of investments. You can find the latest values of ▲ the shares of the CEIC on the website bre.invl.com
• The right of investors in the CEIC to demand redemption of shares which they hold is ▲ restricted.
• Figures for 30 September 2020 are calculated considering the shares in fact bought back ▲ following the share buy-back process which ended on 9 November 2020.
• ▶ which may affect the value of asset holdings.

BALTIC INL | REAL ESTATE

bre.invl.com