Vilnius, Lithuania, 2014-08-08 08:00 CEST (GLOBE NEWSWIRE) --
Unaudited consolidated net profit as well as consolidated net profit attributable to shareholders of INVL Baltic Farmland amounted to LTL 112 thousand (EUR 32.4 thousand).
The financial statements cover the first interim financial period of the company, starting from the company’s establishment date 29 April 2014 and ending on 30 June 2014, therefore there are no comparative data.
Additional information:
INVL Baltic Farmland announced its results for the first half of 2014. At the end of June, 2014 INVL Baltic Farmland consolidated equity was equal to LTL 34.115 million (EUR 9.88 million) or LTL 10.36 (EUR 3) per share. INVL Baltic Farmland uses no leverage.
Currently having around 3 thousand hectares under management through subsidiaries INVL Baltic Farmland has started its activities in the end of April, 2014 after a separation from asset management company Invalda LT. Due to this fact, income and profit announced represent only two months of activity. The result is LTL 112 thousand (EUR 32.4 thousand) of net profit.
„The main recent event in the farmland market was enforcing of farmland sales restriction law in May, 2014. The law diminishes the number of potential farmland buyers and banns farmers from acquiring more than 500 hectares of farmland in total. Taking all these things into account farmland demand has dropped and possibilities for INVL Baltic Farmland to expand its farmland portfolio in Lithuanian market have been restricted. However, at the same time demand for leased farmland has increased“– as stated by Sigita Bizuliene, INVL Baltic Farmland subsidiaries’ director.
According to Ms. Bizuliene, INVL Baltic Farmland is now focusing on selection of lessees and 2015 income assurance. „Our farmland is situated in the highest fertility regions therefore the demand to lease these lands is high. What is more, increasing farmers efficiency and growing profits keep prices rising“, said Ms. Bizuliene
As expressed by Ms. Bizuliene, INVL Baltic Farmland shares are not for those looking for speculative price increases, but instead for those who are willing to get higher return from rent increase compared to bank deposit and additionally earn from farmland value growth. „Despite the fact that farmers in Lithuania are selling production in a global market, price of farmland stays lower than in other European Union countries and therefore we believe is bound to grow“, - said Ms. Bizuliene.
In the middle of 2014 corporation Matininkai has completed INVL Baltic Farmland portfolio valuation. Results show that value of the portfolio has decreased by 1.2 percent to LTL 36.5 million (EUR 10.57 million) or LTL 12.1 thousand (EUR 3.5 thousand) per hectare compared to the beginning of the year 2014.
The person authorized to provide additional information:
Darius Sulnis
Director
E-mail:Darius@InvaldaLT.com
