INVL Baltic Farmland, a company that invests in agricultural land, will pay shareholders EUR 323 000 of dividends for 2019, allocating EUR 0.10 per share. That decision was approved today, 23 March, by the general meeting of shareholders of the company.
The dividends will be paid out within a month of the decision. Investors will be eligible to receive them who are shareholders of INVL Baltic Farmland at the end of business on 6 April.
The shareholders meeting also approved authorisation for INVL Baltic Farmland to buy back its own shares. The minimum share price is EUR 3 and the maximum EUR 5. The decision will remain in effect for 18 months from the date of its adoption.
The company’s audited financial results for 2019 were approved as well. INVL Baltic Farmland last year had revenue of EUR 645 000 and an audited net profit of EUR 1.136 million. Compared to 2018, the company’s revenue increased 4.9%, while its net profit grew 2.1%.
INVL Baltic Farmland’s equity at the end of last year was EUR 13.443 million, or EUR 4.16 per share. Equity per share, which also takes into account dividends paid out during 2019, increased 9% last year.
Additionally, last week the company published a commentary regarding the operations being carried out and the business environment under the circumstances of the coronavirus. In the opinion of the management of INVL Baltic Farmland, the company’s operations will not be impacted or will be little impacted by the coronavirus because the agricultural land rental agreements which have been made are long-term and so far there are no announcements about disruptions of farming activity. However, if world prices of agricultural products were to fall sharply, INVL Baltic Farmland would also feel the consequences. If circumstances change or repercussions become clearer, the company will provide information in a separate announcement.
Considering the rental agreements in effect, INVL Baltic Farmland plans during 2020 to receive EUR 652 000 of revenue and earn a consolidated net profit of EUR 390 000. The operating forecasts assume that during this year the value of the company’s land holdings will not change, there will be no land purchase or sale transactions, and there will be no changes in provisions for receivable amounts or impact of tenant debts on the size of the administration fee.
INVL Baltic Farmland is listed on the Nasdaq Vilnius stock exchange. Its subsidiaries own nearly 3 000 hectares of agricultural land in Lithuania which is rented out to agriculture companies and farmers. The value of INVL Baltic Farmland’s land holdings at the end of 2019 was EUR 14.72 million, or EUR 4 740 per hectare.
