INVL Baltic Farmland, a company that invests in agricultural land, will pay its shareholders EUR 484 thousand of dividends for 2020, allocating EUR 0.15 per share. The decision was adopted today, 9 April, at the company’s general meeting of shareholders.
“Successful operations last year allowed the company to accumulate free cash which is sufficient to pay a dividend larger than the amount of EUR 0.10 envisaged in the company’s dividend policy,” says Alvydas Banys, the chairman of the board of INVL Baltic Farmland.
The dividends will be paid out within a month of the date of the decision. Investors will be eligible to receive them who are shareholders of INVL Baltic Farmland at the end of business on 23 April this year.
At the meeting, the company’s audited financial results for 2020 were also approved. INVL Baltic Farmland had had revenue of EUR 649 thousand in 2020 and an audited net profit of EUR 895 thousand. Compared to 2019, the company’s revenue increased 0.6% and its net profit decreased 21.2%.
INVL Baltic Farmland’s equity at the end of last year was EUR 14.015 million, or EUR 4.34 per share. Equity per share, which also takes into account dividends paid out during 2020, increased 6.7% last year.
Based on a valuation of INVL Baltic Farmland’s assets as at the end of 2020, during the year the value of its landholdings increased 4.4% to EUR 15.36 million, or EUR 4 960 per hectare, assessing the total plot area owned.
The shareholders meeting also confirmed 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.
Considering the rental agreements in effect, INVL Baltic Farmland plans during 2021 to receive EUR 665 thousand of revenue and earn a consolidated net profit of EUR 385 thousand. 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 approximately 3 thousand hectares of agricultural land in Lithuania which is rented out to agriculture companies and farmers.