The public joint stock company INVL Baltic Farmland owns shares of companies that invest in agricultural land.
INVL Baltic Farmland was established on 29 April 2014 on the basis of the part assets split-off from one of the leading asset management groups in the Baltic region Invalda INVL.
INVL Baltic Farmland controls 100 per cent of 18 companies which own almost 3,000 hectares of agricultural land in Lithuania. More than 98 per cent of the land is rented out to farmers and agricultural companies.
The landowning companies and INVL Baltic Farmland on 30 June 2015 signed a basic property administration agreement with INVL Farmland Management, which administers the agricultural land owned by the companies seeking to ensure a steady growth of income for shareholders and to increase the value of the land. On 21 October 2020, the General Meeting of Shareholders of the Company approved the extension of the agreement with UAB INVL Farmland Management and its arrangement in a recast version. The agreement was extended until 31 December 2025.
The management fee paid to INVL Farmland Management comprises 7 per cent of the annual rental income of the landowning companies as well as 0.5 per cent of INVL Baltic Farmland’s market capitalization. There is also a success fee which is payable only when the annual growth of the consolidated equity of the landowning companies is more than 5 per cent plus inflation (the ‘high-water mark’ principle applies). The success fee is 20 per cent of the consolidated equity in excess of the above specified benchmark.