INVL Baltic Real Estate

Investor Presentation • Jun 14, 2017

2017

INVL BALTIC REAL ESTATE – AN ALTERNATIVE FOR INVESTING IN REAL ESTATE

INVL Baltic Real Estate is a closed-end investment company that invests in real estate.

Key figures:

• Market capitalization*: EUR 27.7 mln
• Net asset value**: EUR 31.4 mln
• Value of properties**: EUR 52 mln

INVL Baltic Real Estate invests in commercial real estate at strategically good locations in the Baltic capitals of Vilnius and Riga.

Clear dividend policy: annual payment of dividends of at least 3% (of the 2016 share offering price).

A target annual return for investors of 8+% (including the 3% annual dividends).

79% OF OWNED PROPERTIES BY ASSET VALUE ARE IN THE CENTRAL PART OF THE CITY OF VILNIUS

A PROMISING REAL ESTATE PORTFOLIO

THE COMPANY'S PROPERTY HOLDINGS: KEY FIGURES

ACTIVE WORK WITH NEW TENANTS, GROWING PROPERTY VALUE

Vilnius Gates Business Centre Premises on Gyneju Street

Address

Gynėjų 14, Vilnius

Location

Prestigious part of Vilnius beside the Lithuanian parliament

10.9 € mln	50%	11
Market value of property at end-2016	Occupancy at end of Q1 2017	Number of tenants
6,400 m2	6,400 m2
Total area	Usable area

Main tenants

Rise Vilnius Swedbank Stebuklai INVL Technology managed companies

INVL Asset Management

HIGH OCCUPANCY, STABLE FLOW OF LEASING INCOME

IBC Class A Business Centre

Total area	Usable area	Total area of IBC land plot
11,400 m2	7,100 m2	1.47 ha
Market value of property at end-2016	Occupancy at end of Q1 2017	Number of tenants
12 € mln	96%	36

Address

Šeimyniškių 1a, Šeimyniškių 3, Vilnius

Main tenants

IBM Lietuva, UAB Šiaulių bankas European Bank for Reconstruction and Development Amber food, UAB Drogas, UAB

Location

Central Vilnius business district by Konstitucijos Ave., in the vicinity of key government and financial institutions.

HIGH OCCUPANCY, STABLE FLOW OF LEASING INCOME

IBC Class B Business Centre

11,300 m2 10,600 m2 1.47ha 10.2 mln € 96% 32 Total area Total area of IBC land plot Market value of property at end-2016 Usable area Occupancy at end of Q1 2017 Number of tenants

Address

Šeimyniškių 3a, Juozapavičiaus 6, Vilnius

Location

Central Vilnius business district

by Konstitucijos Ave., in the vicinity

of key government and financial institutions.

Main tenants

Sanofi-Aventis Lietuva, UAB

AC Nielsen Baltics, UAB

BAIP, UAB

State Data Protection Inspectorate

Sandoz Pharmaceuticals

NEW COMMERCIAL PROPERTY TENANTS ATTRACTED

Office Building in Central Vilnius on Vilniaus Street

Total area	Usable area	Area of land plot
9,700 m2	6,200 m2	0.49 ha
Market value of property at end-2016	Occupancy at end of Q1 2017	Number of tenants
7.6 € mln	95%	27

Address

Palangos 4,

Vilniaus 33,

Vilnius

Location

Central location in the Old Town of Vilnius.

Main tenants

Grill London

Lithuanian Ministry of Healthcare

InReal, UAB

Telia, AB

Lithuanian Science Council

OPTIMIZED TENANT STRUCTURE

Dommo Business Park manufacturing, warehouse and office complex

Address

Stūnyši,

District Olaines,

Latvia

Location

Strategic location for logistics activities beside the Riga bypass.

8 € mln	80%	4
Market value of property at end-2016	Occupancy at end of Q1 2017	Number of tenants
Total area 12,800 m2	Usable area 12,600 m2	Area of land plot 58.21 ha

Main tenants

Bohnenkamp, SIA

Tente, SIA

Rewico Balticum, SIA

DLW Latvija, SIA

THE COMPANY'S GROWING VALUE

KEY FIGURES FOR FIRST 3 MONTHS OF 2017

Portfolio, thousand EUR	31 03 2015	31 03 2016	31 03 2017
OPERATIONAL PROPERTY INVESTMENTS	31,375	46,293	48,282
PROPERTY INVESTMENT REDEVELOPMENT	2,473	1,720	350
OTHER INVESTMENT PROPERTIES	-	3,735	4,017
TOTAL PROPERTY VALUE	33,848	51,748	52,649
RENT INCOME FROM OWN PROPERTIES DURING 3 MONTHS	659	900	934
NOI (NET OPERATING INCOME) FROM OWN PROPERTIES DURING 3 MONTHS*	471	658	586
NLA (NET LEASABLE AREA), M2	42,076	48,476	48,476

Balance sheet, EUR mln	31 03 2015	31 03 2016	31 03 2017
INVESTMENT PROPERTIES	33.85	51.75	52.65
OTHER NON-CURRENT ASSETS	5.04	0.85	0.22
CASH	0.43	1.62	0.57
OTHER CURRENT ASSETS	0.52	1.31	1.49
TOTAL ASSETS	39.84	55.53	55.93
BORROWINGS FROM CREDIT INSTITUTIONS	15.19	22.10	21.43
BORROWINGS FROM INVALDA INVL	5.27	-	-
OTHER LIABILITIES	4.61	5.73	2.07
TOTAL LIABILITIES	25.07	27.83	23.50
EQUITY	14.77	27.70	31.43
EQUITY PER SHARE, EUR	0.43	0.42	0.48

KEY FIGURES FOR FIRST 3 MONTHS OF 2017

Profit (loss) statement, thousand EUR	01 01 2015– 31 03 2015	01 01 2016– 31 03 2016	01 01 2017– 31 03 2017
REVENUE	1,400	1,610	1,670
from own properties	660	900	930
from subleased properties	410	380	410
other revenue	330	330	330
NET PROFIT	280	340	360
EARNINGS PER SHARE, EUR	0.01	0.01	0.01

Borrowings	31 03 2015	31 03 2016	31 03 2017
BORROWINGS, THOUSAND EUR	24,616	22,108	21,435
BORROWINGS TO VALUE OF INVESTMENT PROPERTIES*	72.7	42.7	40.7
GEARING RATIO*	0.58	0.43	0.40
INTEREST COVERAGE RATIO*	2.82	3.23	4.14
BANK'S DEBT SERVICE COVERAGE RATIO*	2.27	2.20	1.51

PERFORMANCE INDICATORS SINCE SHARE OFFERING IN EARLY 2016

What we promised while conducting the share offering:

We plan:

• To complete reconstruction works at Vilnius Gates and reach 100% occupancy of the property;
• To increase the useable area at Vilnius Gates by 700 m2 ;
• To increase the flow of leasing income from all properties by 15%;
• To complete the reorganization of Dommo Business Park and reach 100% occupancy of the property;
• To achieve a net operating income (NOI) figure of EUR 3 mln.

PRUDENT ASSET VALUATION

Assessment of the property holdings shows there are prospects for the company's value to grow in light of the properties' good locations and development potential.

	Property value, EUR mln	Property value per sq. m., EUR/m2
IBC CLASS A BUSINESS CENTRE	12.0	1,050
VILNIUS GATES BUSINESS CENTRE, PREMISES ON GYNEJU ST.	10.9	1,700
IBC CLASS B BUSINESS CENTRE	10.2	900
DOMMO BUSINESS PARK MANUFACTURING, WAREHOUSE AND OFFICE COMPLEX	8.0	630
OFFICE BUILDING IN CENTRAL VILNIUS, VILNIAUS ST.	7.6	780
ZYGIS BUSINESS CENTRE IN ŠIAURĖS MIESTELIS	2.5	780
OFFICE AND WAREHOUSE PREMISES IN KIRTIMAI	0.8	270

INVL BALTIC REAL ESTATE – AN ATTRACTIVE ALTERNATIVE FOR INVESTING IN REAL ESTATE

An alternative to direct investments in real estate Investment in a publicly listed company lets one invest much smaller amounts than usual when purchasing real estate. Clear dividend policy Under the company's dividend policy, each year dividends are paid of at least 3% (of the 2016 share offering price). Investment liquidity The company is listed on the NASDAQ BALTIC exchange.

IMPORTANT INFORMATION

Investments in the shares of closed-end investment companies (hereinafter "UTIB") are associated with investment risk. The value of a 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. Past results 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 for a past period of time and results for a past period are not a reliable indicator of future performance.

The UTIB does not guarantee the profitability of investments. The latest values of the shares of the UTIB are available on the website https://bre.invl.com/lit/en.

Before making a decision to invest, you should personally or with the help of investment advisors assess the selected UTIB's investment strategy, applicable fees and all investment-related risks. You should also carefully read the UTIB's Prospectus, Rules and Key Investor Information Document. These documents are available for review on the website https://bre.invl.com/lit/en.

All the information presented is of a promotional-informative nature and cannot be construed as a recommendation, oer or invitation to invest in the shares of the UTIB. The company is not responsible for any decisions taken by third parties on the basis of information provided in this presentation alone and assumes no responsibility for expenses or direct or indirect losses experienced when using only this information. The information provided cannot be the basis for any subsequently concluded agreement. Although the content of this information of a promotional nature is based on sources considered to be reliable, the company is not responsible for inaccuracies or changes in the information, or for losses that may arise when investments are based on this information.

The right of investors in the UTIB to demand redemption of shares which they hold is restricted.

THANK YOU FOR YOUR ATTENTION