INVL Baltic Farmland, a company that invests in agricultural land, and its landholding subsidiaries will renew a simple property management contract with INVL Farmland Management UAB, which administers the land the companies own, seeking to effectively ensure moderate income growth for shareholders and increase the land holdings’ value. That decision was made on 21 October by the company’s general meeting of shareholders.
The agreement based on which the company in question is entrusted with administering the land owned by INVL Baltic Farmland’s subsidiaries was signed on 30 June 2015 and expires on 31 December 2020. The new agreement will extend for five more years.
The general meeting of shareholders also approved signing an agreement with PricewaterhouseCoopers on auditing the financial statements of INVL Baltic Farmland for 2020, 2021 and 2022.
From 30 June 2015 to 20 October 2020, an average annual internal rate of return (IRR) of 14.3% and an absolute return of 96.6% were generated for shareholders of INVL Baltic Farmland.
In 2020 INVL Baltic Farmland plans to receive revenue of EUR 652 000 and earn a consolidated net profit of EUR 390 000. The company’s revenue in the first half of the year was 47% of the full-year forecast, while its net profit was 42% of the amount forecast for the year. Excluding the effect of provisions for receivables in the reporting period, the net profit figure would be 50.5% of the full-year forecast.
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.
