Published: 2021-04-29 08:45:47 CEST
INVL Baltic Real Estate
Notification on material event

Shareholders of INVL Baltic Real Estate approved dividends allocation for the year 2020, approved amendments to incorporation documents, formation of the supervisory board as well as reduction of authorized capital

The General Shareholders meeting of INVL Baltic Real Estate (hereinafter – “the Company”) held on 29 April 2021 decided to approve the proposed dividend allocation of EUR 0.12 per share for the year 2020 (the total amount of dividends allocation amounts to EUR 1 million).

The Company notes that dividends will be paid out and dividend payment procedure for 2020 published within one month of the General Shareholders Meeting that approved the decision to allocate the dividends. Persons, who will be shareholders of the Company at the end of 13 May 2021, the tenth day after the General Shareholders Meeting to approve the resolution to allocate part of Company’s profit for the payment of dividends, are entitled to receive dividends.

The ex-date is 12 May 2021. From that date the new owner of the shares of INVL Baltic Real Estate, ISIN code LT0000127151, which were acquired on stock exchange with settlement cycle of T+2, is not entitled to dividends for the year 2020.

Also, the shareholders of the Company during the General Shareholders Meeting approved the reduction of the authorized capital of the Company in order to cancel 5,088,586 units of ordinary registered own shares acquired by INVL Baltic Real Estate during the buy-back of shares process and approved the formation of a supervisory board of the Company. To implement these changes, the General Shareholders Meeting of the Company approved the amendments of the Articles of Association of the Company as well as approved the new wording of the Articles of Association. The Articles of Association would be amended after approval of the Bank of Lithuania would be received.

Furthermore, the General Meeting of Shareholders of the Company approved the main terms and conditions under which the repurchase of the Company's own shares will be carried out.

Additional information:

The real estate investment company INVL Baltic Real Estate will pay dividends of EUR 1 million to shareholders for 2020, an allocation of EUR 0.12 per share. That and other decisions were adopted at the general meeting of shareholders of the company which took place today.

“Both thanks to last year’s successful exits and successful property transformations, we have proven once again that we are able to create significant growth in the value of assets and a long-term return for our investors. The company has accumulated free cash which enables it to pay a dividend higher than the EUR 0.09 envisaged in its dividend policy,” says Vytautas Bakšinskas, a member of the Investment Committee of INVL Baltic Real Estate.

The dividends will be paid out within a month after the adoption of the decision. Those persons will have a right to receive them who are shareholders of INVL Baltic Real Estate at the end of the business day on 13 May this year. Based on the share price on 28 April 2021, the dividend yield amounts to 5%.

Also approved at the meeting were procedures for the acquisition of the company’s own shares and the transfer of EUR 4.3 million from retained earnings to a reserve for the acquisition of own shares.

According to Vytautas Bakšinskas, the right to buy-back the company’s own shares will be used if the share price on the market is lower than the net asset value (NAV). That will give shareholders additional liquidity opportunities, and when INVL Baltic Real Estate acquires shares for less than the NAV, the value of the remaining shares should grow.

The maximum buy-back price per share was set at INVL Baltic Real Estate’s last published net asset value per share, and the minimum at EUR 1.45. Regarding the maximum number of shares that may be acquired, the total own shares held by INVL Baltic Real Estate may not exceed one-tenth of the company’s share capital.

Seeking to annul 5 088 586 ordinary registered own shares acquired by INVL Baltic Real Estate in share buy-back processes, a proposal was approved to reduce the company’s share capital from EUR 19.1 million to EUR 11.7 million by annulling own shares which the company has acquired.

A decision was also approved at the general meeting of shareholders form a Supervisory Board at INVL Baltic Real Estate, the designated members of which are Raimondas Rajeckas, the CFO of Invalda INVL, Audrius Matikiūnas, the head of INVL Asset Management’s Legal and Product Management Team, and Eglė Surplienė, a wealth manager at Gerovės Valdymas with more than 25 years of experience in the Lithuanian financial market.

The members of the Supervisory Board will be able to take office when the Bank of Lithuania approves their candidacies.

INVL Baltic Real Estate owns real estate in Vilnius and Riga: office buildings in the Old Town of the Lithuanian capital on Vilniaus Street and in Šiaurės Miestelis, and the Dommo Business Park manufacturing, warehouse and office complex beside the Riga bypass. The company’s properties had occupancy of between 72% and 100% as year-end.

INVL Baltic Real Estate’s property holdings currently have a total area of 26 000 sq. m. and a value of EUR 24.13 million.

Since its launch as a collective investment undertaking (on 22 December 2016), INVL Baltic Real Estate has been one of the Baltic real estate funds open to retail investors with the highest stable returns. The fund operates as a closed-end investment company. Management of the company was assumed by INVL Asset Management, one of Lithuania’s leading asset management firms. The company will operate as a closed-end investment company until 2046, with extension possible for a further 20 years.

The person authorized to provide additional information:
Real Estate Fund Manager of Management Company
Vytautas Bakšinskas