INVL Baltic Real Estate

Earnings Release • Aug 17, 2018

Key information for 6 months of 2018

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.

Main information about securities of the Company Assets under management: about 57,000 sq. m. of real estate in Vilnius and Riga – mostly business centres, manufacturing, warehouse properties and other commercial premises. 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: On 22 December 2016 the Bank of Lithuania issued the closed-ended type investment company operating license for 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
ISIN code	LT0000127151
Amount of shares, units	13,150,000
Nominal value per share, EUR	1.45
Share price, EUR (as of 30.06.2018)	2.30
Last approved dividends, EUR per share	0.13
Consolidated equity, thousand EUR	32,058
Net asset value per share, EUR	2.5900
INVL Baltic Real Estate change of share price and indexes

INVL Baltic Real Estate change of share price and indexes

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

half of 2017 to EUR 0.956 million. INVL Baltic Real Estate's other properties also showed high occupancy levels and growing financial results. Steadily improving performance had a positive impact on the value of the company's property holdings, which rose EUR 1.2 (because of EUR 0.85 million revaluation) from the start of the year to EUR 57.5 million. We are pleased with the positive results of the company and we'll strive to continue increasing the value of the property holdings.

Portfolio, thousand EUR	30.06.2016	30.06.2017	30.06.2018
Operational Property investments	46,355	49,678	52,791
Property Investment redevelopment	1,720	350	350
	3,735	4,042	4,376
Other investment properties
TOTAL PROPERTY VALUE	51,810	54,070	57,517
Rent Income from own properties during 6 months period NOI (Net Operating Income) from own properties during 6	1,772	1,893	2,257
months period	1,151	1,182	1,695
NLA (Net Leasable Area), sq.m.	48,476	48,476	46,576
Balance sheet, million EUR	30.06.2016	30.06.2017	30.06.2018
Investment properties	51.8	54.1	57.5
Cash	0.7	0.3	0.6
Other assets	2.1	1.7	1.2
TOTAL ASSETS	54.6	56.1	59.3
Borrowings from credit institutions	21.9	21.3	23.1
Other liabilities	5.5	3.0	2.1
TOTAL LIABILITIES EQUITY	27.4 27.2	24.3 31.8	25.2 34,1

NLA (Net Leasable Area), sq.m.	48,476	48,476	46,576
Balance sheet, million EUR	30.06.2016	30.06.2017	30.06.2018
Investment properties Cash	51.8	54.1	57.5
Other assets	0.7	0.3	0.6
TOTAL ASSETS	2.1 54.6	1.7 56.1	1.2 59.3
Borrowings from credit institutions	21.9	21.3	23.1
Other liabilities	5.5	3.0	2.1
TOTAL LIABILITIES	27.4	24.3	25.2
EQUITY	27.2	31.8	34,1
Equity per share*	EUR 2.07	EUR 2.42	EUR 2.59
	01.01.2016-	01.01.2017-	01.01.2018-
Profit (loss) statement, million EUR	30.06.2016	30.06.2017	30.06.2018
Revenue from own properties	3.1 1.8	3.3 1.9	2.9 2.2
from subleased properties	0.8	0.8	0.1
other revenue	0.5	0.6	0.6
Investment property revaluation	-	1.0	0.85
Net profit	0.6	1.5	1.9
Earnings per share*	EUR 0.05	EUR 0.12	EUR 0.15
Borrowings	30.06.2016	30.06.2017	30.06.2018
Borrowings, thousand EUR	21,939	21,266	23,108
Borrowings to value of investment properties**	42.3	39.3	40.2
Gearing ratio**	0.44	0.40	0,40
Interest coverage ratio**	3.36	3.85	5.93

Vilnius

IBC Class A Business centre Šeimyniškių str. 1, Šeimyniškių str. 3 Vilnius	Business centre str. 6, Vilnius	IBC Class B A. Juozapavičiaus	Business centre Vilnius Gates Gynėjų str. 14 Vilnius		Office building Palangos str. 4/ Vilniaus str. 33 Vilnius	Žygis Business centre Žygio str. 97 Vilnius	"Dommo business park" Riga Latvia
Acquired	2003	2003	2015		2006	2006	2015
Net leasable area	7,100 sq.m	10,300 sq.m	7,100 sq.m		6,400 sq.m	2,600 sq.m	12,800 sq.m
Property value	EUR 12.1 million	EUR 10.5 million	EUR 14.5	million	EUR 8.9 million	EUR 2.8 million	EUR 8.2 million
Occupancy	95%	95%	91%		77%	100%	98%
*The nominal	value per share amounted	to EUR 1.45				More information: www.invlbalticrealestate.com
	**https://bre.invl.com/lit/en/for-investors/reports/formulas-of-performance-indicators