Investor Presentation • Jan 13, 2016
Investor Presentation
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JANUARY 2016
This is a promotional presentation for information purposes which is not and cannot be construed as an offer to buy shares, an investment recommendation or investment research. The presentation is provided solely on the basis of the AB INVL Baltic Real Estate ("the Company") Share Issue Prospectus approved by the Bank of Lithuania, which is the only legally binding document containing information about the Company and the Company's public offering of shares. The Prospectus is available on the website of the Company www.invlbalticrealestate.lt and the website of the manager of the offering www.invlfinasta.com.
When investing, you assume the risk associated with investing. The value of investments can both increase and decrease, and you may recover less than the amount you invested. Past results of investments do not guarantee that the same type of results or level of return will be achieved in the future. Performance during a past period is not a reliable indicator of future performance. Before making a decision to invest, you should individually or with the help of investment consultants assess the suitability of the investments for you as well as the fees and all risks associated with investing, and carefully read the Prospectus.
The information in the presentation reflects the Company's opinion at the time of the information's announcement and/or provision, but the information has not been independently verified. The presentation may not include all the information about the Company which is relevant to the recipient. The information may be updated at the Company's discretion.
The assumptions, opinions and views provided in the presentation are only opinions and projections of the Company which reflect the Company's current viewpoint regarding potential future events. But such events, for a variety of reasons (legal or economic, for example), may not occur at all or may occur on a different scale than what is foreseen.
Information used in the presentation regarding the total area of investment properties managed by the Company, and all other associated derivative information (including calculations), excludes the parking spaces and analogous premises corresponding to the properties. Similar information in the Prospectus gives the total area of the properties including the corresponding parking spaces and analogous premises.
Neither the Company nor its representatives are liable for losses that occur due to the use of this presentation or that are otherwise associated with this presentation.
This information may not be distributed in any way without the previous written consent of the Company.
• OFFERING SCHEDULE AND ACTIONS FORESEEN IN 2016
EGIDIJUS DAMULIS CEO of AB INVL Baltic Real Estate
ANDRIUS DAUKŠAS
Deputy CEO of AB INVL Baltic Real Estate and investment manager at AB Invalda INVL
DARIUS ŠULNIS
President of AB Invalda INVL and CEO of UAB INVL Asset Management
ALVYDAS BANYS
Chairman of the Board of AB INVL Baltic Real Estate
INDRĖ MIŠEIKYTĖ
Member of the Board of AB INVL Baltic Real Estate
Operational management, real estate portfolio development and sales, identification of potential deals
Investment management, financial planning, cost control, relations with banks
Identification of potential deals, negotiations, raising capital, decisions on property acquisitions, development and sale Strategic portfelio management, decisions on property acquisitions, development and sale Strategic portfelio management, decisions on property acquisitions, development and sale
15+ years Direct experience in the Baltic real estate market
3+ years Direct experience in the Baltic real estate market
20+ years Direct experience in the Baltic real estate market
20+ years Direct experience in the Baltic real estate market
15+ years Direct experience in the Baltic real estate market
* Target annual return from existing portfolio ** Including income from Latvian property for 9 months of 2015 As per information held by the issuer.
| Valuation Q4 2015, EUR |
Valuation Q4 2015 EUR / m² |
|
|---|---|---|
| IBC A | 12 080 000 |
1 058 |
| Vilnius Gates | 10 279 124 |
1 606 |
| IBC B | 10 220 000 |
901 |
| Dommo | 8 027 000 |
627 |
| Palangos | 7 300 000 |
749 |
| Žygio | 3 060 000 |
946 |
| Kirtimai | 780 000 |
260 |
| Rovelija | 520 000 |
1 882 |
TOTAL AREA
LEASABLE AREA
$7100 m2$
MARKET VALUE OF PROPERTY AT END-2015
€ 12.1 mln
OCCUPANCY AT END-2015
$CI$ $\frac{1}{2}$ PRINCIPAL TENANTS
IBM Lietuva UAB Šiaulių bankas Omnicom Media Group UAB Amber Food UAB Drogas UAB
Šeimyniškių St. 1a, Šeimyniškių St. 3, Juozapavičiaus St. 6.
Central Vilnius business district by Konstitucijos Ave. Neighbours of IBC include key state and financial institutions.
SIZE OF LAND PLOT
AREA: 11 400 SQ. M.
TOTAL AREA
LEASABLE AREA
10 600 m2
SIZE OF LAND PLOT
MARKET VALUE OF PROPERTY AT END-2015
€ 10.2 mln
OCCUPANCY AT END-2015
$27. \%$
PRINCIPAL TENANTS
Sanofi-aventis Lietuva
ACNielsen Baltics UAB
BAIP UAB
State Data Protection Inspectorate
Sandoz Pharmaceuticals
Šeimyniškių St. 3, Šeimyniškių St. 3a,
Juozapavičiaus St. 6, Slucko St. 2.
Central Vilnius business district by Konstitucijos Ave. Neighbours of IBC include key state and financial institutions.
AREA: 11 300 SQ. M.
TOTAL AREA
$6400 m2$
LEASABLE AREA
$6400 m2$
MARKET VALUE OF PROPERTY AT END-2015
€ 10.28
mln
OCCUPANCY AT END-2015
B7 %
PRINCIPAL TENANTS
ADDRESS
LOCATION
Prestigious area of Vilnius alongside the Lithuanian parliament.
AREA: 6 400 SQ. M.
AREA: 9700 SQ. M.
TOTAL AREA
LEASABLE AREA
$2500 m2$
SIZE OF LAND PLOT
$0.6ha$
AT END-2015
MARKET VALUE OF PROPERTY
€3.06 mln
OCCUPANCY AT END-2015
$\frac{1}{2}$
PRINCIPAL TENANTS
National Paying Agency Innoforce UAB Nova Media LT UAB
Famille UAB
ADDRESS
J. Galvydžio St. 7 / Žygio St. 97, Vilnius
LOCATION
Business centre in a modern commercial and residential neighbourhood.
AREA: 3 200 SQ. M.
| TOTAL AREA | MARKET VALUE OF PROPERTY AT END-2015 |
PRINCIPAL TENANTS |
|---|---|---|
| Utu UAB | ||
| 3000 m 2 | Daltra UAB | |
| € 0.78 | Retieji metalai UAB | |
| LEASABLE AREA | TEO LT AB | |
| mln | Bardra UAB | |
| $2500 \, \text{m}^2$ | ||
| ADDRESS | ||
| Kirtimu St. 33, Vilnius | ||
| SIZE OF LAND PLOT | OCCUPANCY AT END-2015 | |
| LOCATION | ||
| 0.67 ha | 5% | Convenient site for logistics activity alongside the Vilnius bypass. |
At 2015 09 30 equity capital was EUR 0.375 / share
Impact of property valuation in Q4 2015: + EUR 0.047 / share**
Additional positive impact of ongoing activity in Q4
Equity capital per share at end-2015 > EUR 0.42
* Planned discount of the offering price relative to the equity capital attributable to one share ** Calculated on the basis of the preliminary change of investment property value published in a material event announcement on 22 December 2015. 5%*
Possible fluctuations in the value of investment property.
The cyclical nature of the real estate sector.
Risk associated with business operations in the Baltic countries.
Competition.
Catastrophes, terrorist attacks, actions of war, riots, civil unrest, pandemics and other unforeseen events could have a material negative impact on the Group.
Dependence on external financing. Transactions with related parties. The Group faces various risks arising from the long duration of real estate development projects. Dependence on several large projects. Risk associated with lease agreements. Dependence on the Company's property administrator. Liquidity of the Group. Interest rate risk. Risk of losing the right of ownership over the investment property at Gynėjų St. 14, Vilnius. Risk of illiquidity of investments. Leverage risk. Dependence on tenants. Sublease agreement risk.
The legal requirements and rules of the markets in which the Group operates may be changed.
Possible change of the Company's legal status. The Company intends to apply to the Bank of Lithuania for a closed-end investment company license. Issuance of the would mean a change of the protection of the Company's shareholders and certain restrictions on activities, as foreseen in the Law on Collective Investment Undertakings; for example, the Company's shares will be replaced with investment units, the Company will have the right to invest funds it manages and certain restrictions foreseen in applicable legislation will apply to the Company's investment activity, diversification of investments, etc. The Company's operating expenses may also increase due to requirements to conduct periodic valuation of assets, to keep the Company's assets in a depositary, etc.
The price of the Company's shares may fluctuate significantly.
The value of the shares may decrease due to turmoil in emerging markets.
There is no guarantee that the Company will in the future pay dividends.
The liquidity of the issuer's shares is not guaranteed.
The offering may be delayed, halted or cancelled; investors are not guaranteed that they will be allocated the full or partial number of the offered shares to which they have subscribed.
Large shareholders risk.
The comprehensive description of risk factors can be reviewed in the Prospectus, which is published on the website of the Company www.invlbalticrealestate.lt and on the website of the manager of the offering www.invlfinasta.com.
| COMPANY: | UAB INVL Asset Management, established in 2003 |
|---|---|
| ACTIVITY: | Diversified investment manager operating in the Baltic countries |
| LICENSES: | Licensed asset management company supervised by the Bank of Lithuania |
| AuM: | Over EUR 250 million |
| MAIN PRODUCTS: | 5 mutual funds (market share in Lithuania: 48%*) 8 pension funds (2nd and 3rd pillar) Wealth management: portfolios for ~250 individuals with high net income |
| AUDITORS: | The management company and all its funds are audited by Big 4 auditors (currently PwC). |
* According to the most recent Bank of Lithuania review:
https://www.lb.lt/ii_ir_iii_pakopos_pensiju_fondu_bei_kolektyvinio_investavimo_subjektu_rinkos_apzvalgos_2015_m_i_pusm_1
Summary
| TEAM: | A team with strong experience developing real estate projects that is able to control the situation and take advantage of opportunities in the market. |
|---|---|
| ASSETS: | AB INVL Baltic Real Estate represents an opportunity invest in a company that manages a diversified portfolio of real estate in strategically important locations in Lithuania and Latvia. |
| RETURN: | The target annual return is 8+% including 3% annual dividends paid out once a year after publication of the audited financial statements. |
| RELIABILITY: | The Company's current shareholders are co-investing. The Company is listed on the Nasdaq Baltic exchange. |
| FORM: | The Company plans to apply to the Bank of Lithuania for a CEIC license. That would make it possible to achieve even greater management efficiency by transferring management to UAB INVL Asset Management, which is supervised by the Bank of Lithuania. |
CEO AB INVL Baltic Real Estate Address: Gynėjų St. 14, LT-01109 Vilnius E-mail: [email protected]
Lead Manager: UAB FMĮ INVL Finasta Tel: +370 700 55 959 Address: Gynėjų St. 14, LT-01109 Vilnius E-mail: [email protected]
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