INVL Baltic Real Estate

Earnings Release • Apr 28, 2017

BALTIC REAL ESTATE

NI

Key information for 3 months of 2017

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, AB stock exchange since 2014.

Assets under management: about 58,000 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 for INVL Baltic Real Estate issued the closed-ended type investment company operating license 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
ISIN code	LT0000127151
Share price 30.12.2016, EUR	0.397
Par value of share, EUR	0.48
Last paid out dividends (EUR per share)	0.012
Number of Shares	65.750,000
Consolidated equity, thousand EUR	31.433

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

We're pleased with the company's results for three months of this year. Compared with the same period last year, the company's consolidated revenue of leasing income from owned properties grew 3.78 per cent and amounted to EUR 934 thousand, net operating income from properties it owns was EUR 586 thousand, which decreased 10.9 per cent due to investments in the renovation of properties and the company's consolidated net profit was higher by 5.57 per cent and amounted to EUR 360 thousand.

At the end of the first quarter, average occupancy of the company's property holdings was 85 per cent (versus 78 per cent at the end of the first quarter of 2016).

Three-month leasing income for the largest property the company owns - the 23,000 sq. m. IBC Business Centre on Šeimyniškiu Street in the Lithuanian capital - remained stable and totaled EUR 461 thousand.

We continued reconstruction works at the Vilnius Gates property and signed a lease agreement with Xcelsior Vilnius for 600 sq. m. of premises in March. This company represents well-known modern furniture designers and manufacturers. We believe that Xcelsior Vilnius will be a great complement for the Vilnius Gates business centre. With the signing of this lease agreement, occupancy at Vilnius Gates, based on all signed lease agreements, exceeds 90 per cent.

Key information for 3 months of 2017

60000,00

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

NET LEASABLE AREA, m²

EQUITY, MILLION EUR

REVENUE FOR 3 mnth, MILLION EUR

from own properties

Office and warehouse premises in Kirtimai Kirtimų str. 33, Vilnius

Acquired – 2005 NLA 2,500 m² Property value – 0.8 million EUR Occupancy – 94%

Balance sheet, million EUR	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	54.93
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	0.34	0.42	0.48
Profit (loss) statement, million EUR	01.01.2015- 31.03.2015	01.01.2016- 31.03.2016	01.01.2017- 31.03.2017
Revenue	1.40	1.61	1.67
from own properties	0.66	0.90	0.93

from subleased properties 0.41 0.38 0.41 other revenue 0.33 0.33 0.33 Net profit 0.28 0.34 0.36 Earnings per share, EUR 0.01 0.01 0.01

Borrowings	31.03.2015	31.03.2016	31.03.2017	1
Borrowings, thousand EUR	24,616	22,108	21,435	0,5
Borrowings to value of investment properties*	72.7	42.7	40.7	0
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

IBC Class A Business centre Šeimyniškių str. 1, Šeimyniškių str. 3 Vilnius Acquired – 2003 NLA 7,100 m² Property value – 12 million EUR Occupancy – 96%

NLA – Net Leasable Area

IBC Class B Business centre A. Juozapavičiaus str. 6, Slucko str. 2 Vilnius Acquired – 2003 NLA 10,600 m² Property value – 10.2 million EUR Occupancy – 96%

Office building Palangos str. 4/ Vilniaus str. 33 Vilnius

Acquired – 2006 NLA 6,200 m² Property value – 7.6 million EUR Occupancy – 95%

Business centre Vilnius Gates Gynėjų str. 14 Vilnius

Acquired 2015 NLA 6,400 m² Property value – 11.1 million EUR Occupancy – 50%

1,5 2

Žygis Business centre Žygio str. 97 Vilnius

Acquired – 2006 NLA 2,600 m² Property value – 2.5 million EUR Occupancy – 94%

"Dommo business park" Riga Latvia

Acquired – 2015 NLA 12,600 m² Property value – 8.05 million EUR Occupancy– 80%

*https://bre.invl.com/lit/en/for-investors/reports/formulas-of-performance- More information: www.invlbalticrealestate.com

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