INVL Baltic Farmland, a company investing into agricultural land, allocated EUR 197 thousand or EUR 0.06 per share for the payment of dividends
The shareholders of INVL Baltic Farmland also approved the dividend payment policy, which states that each year at least EUR 0.06 per share will be allocated for the payment of dividends. In case of the net profit of the reporting period being larger than previously described share of the profit attributable for dividends, the board of the company, taking into consideration a need for investments and working capital as well as other conditions, can propose to pay out as a dividend a higher share of the profit than described earlier.
“Farmland is an asset generating stable income, therefore the free cash should be paid out as dividends”, – Darius Sulnis, director of INVL Baltic Farmland, said.
Shareholders also agreed to the signing of the agreement, which says that the land administration of INVL Baltic Farmland subsidiaries would be transferred to INVL Farmland Management, a company owned by an investment and asset management company Invalda LT. The proposal is to set annual management fee paid to INVL Farmland Management, UAB not to exceed 7 percent of income plus 0.5 percent of INVL Baltic Farmland, AB market capitalization. In case of bad debt exceeding 5 percent of income surplus shall be fully compensated by INVL Farmland Management, UAB. Additionally, the success fee of 20 percent of the return in excess of minimal annual return of 5 percent plus inflation will be set.
It is foreseen that consolidated income of INVL Baltic Farmland will reach EUR 450 thousand and the net profit is expected to be around EUR 260 thousand.
INVL Baltic Farmland group owns about 3 thousand hectares of farmland in Lithuania, which is leased to farmers and agricultural companies. INVL Baltic Farmland shares are listed on NASDAQ Vilnius stock exchange, company’s equity amounts to EUR 9.9 million.
