In comparison to the previous financial year, “Baltic RE Group AS” group in financial year 2017 has increased its turnover for 16%
In comparison to the previous financial year, “Baltic RE Group AS” group (the Group) in financial year 2017 has increased its turnover for 16%, reaching income in amount of EUR 4 798 997. The Group ended the reporting period with a profit of EUR 37 387. Investment property comprise 81% (49 733 432 EUR) of the statement of financial position total. Investment property consists of the “Baltic RE Group”’s real estates, which are leased/ rented or will be leased/ rented.
Main activities in financial year 2017
In April 2017, the Parent company AS “Baltic RE Group” acquired 91.11% of the share capital and voting rights of SIA “TER Properties” registered in Latvia and obtained control of it. SIA “TER Properties” activity is high-end real estate management and strategic development of subsidiaries. As a result of the acquisition, the Parent company obtained control of SIA “TER Properties” subsidiary - SIA “BB 21”. SIA “TER Properties” through its wholly-owned subsidiary SIA “BB 21” owns real estate at Brivibas Boulevard 21, Riga, Latvia.
In May 2017, the Parent company at extraordinary shareholders’ meeting approved resolutions on the increase of the Parent company’s share capital. It was planned to increase the share capital of AS “Baltic RE Group” by May 2018 by issuing 5 000 000 new registered shares with voting rights at a selling price of one share of EUR 1.10 in accordance with the approved rules for the increase of share capital. Nevertheless, considering that Parent company and its subsidiaries have successfully completed the cycle of investments envisaged on the properties currently owned, and therefore no further significant capital expenditures are expected in the short term, the amount of which exceeds the Group’s cash flow generation, it was considered sufficient to limit the capital increase up to the amount of EUR 4 000 000 by issuing 4 000 000 of new registered shares with voting rights at a selling price of one share of EUR 1.10. As a result of the new issue, the share capital of the Parent company will be increased by EUR 4 400 000. The newly registered share capital of the Parent company after the completion of the capital increase will be EUR 29 000 000.
In August 2017 the final positive decision from the Register of Enterprises of Latvia was received about the merge of 100% controlled Italian company “Baltic Re S.p.a.” with its subsidiary SIA “Skunu 19”, so completing all the procedures and formalities required by the Latvian laws and regulations. As a result of the reorganization AS “Baltic RE Group” gained direct control of “Baltic Re S.p.a.” subsidiary SIA “Skunu 19”, and due to the fact that AS “Baltic RE Group” directly or indirectly fully owned companies involved in the reorganization process, the merger had no impact on any financial or capital dilution effect in AS “Baltic RE Group”.
In October 2017, AS “Baltic RE Group” completed the process of further rationalization of the Group’s structure. AS “Baltic RE Group” acquired shares in subsidiaries through intercompany agreements, which resulted in the 100% direct holding of AS “Baltic RE Group” in the subsidiaries SIA “KEY 1”, SIA “Key 2”, SIA “KEY 6”, SIA “Key 15”.
Group’s operations during the reporting period were focused on the expansion of courses of action, improvement of work organization, which provides stable and consistent operations across all the Group’s business units and the necessary financial support to them. During the reporting period active work with the Group’s clients was carried out, as well as successful actions were taken in the research, development and implementation of new activities.
Core business activity of the AS “Baltic RE Group” is investing in and managing - directly or through Group’s subsidiaries - core plus real estate properties in prime locations in the city of Riga. The activity includes services of real estate management and lease / rental of premises as well as the strategic development of the subsidiaries through coordinated services on economics, tax, finance, marketing, legal and technical issues.
“Baltic RE Group AS” group includes AS “Baltic RE Group” and its subsidiaries: SIA “KEY 1”, SIA “Key 2”, SIA “KEY 6”, SIA “Key 15”, SIA “Skunu 19”, SIA “TER Properties”, SIA “BB 21” and SIA “BB 19”.
During 2017 AS “Baltic RE Group” significantly increased its investment, reaching EUR 11’261’416 of total net cash used for investment purpose, mostly destined to support the subsidiaries investment initiatives. For the year 2018 the Board of AS “Baltic RE Group” is planning to proceed – directly and through its subsidiaries - in developing its core business activity, optimizing the management current properties with the strategy of selecting first class tenants to ensure over time the highest stability of the cash flow of its real estate portfolio.
At the moment of the approval AS “Baltic RE Group” audited annual report and consolidated financial statement for year 2017 the portfolio of the properties owned by the Group has 100% occupancy (leased out) of the surfaces currently in exploitation.
The Group is focused and ready for new opportunities which shall appear on the market, to invest further in landmark properties consistent with the unparalleled quality of the existing portfolio.
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About AS “Baltic RE Group”
AS “Baltic RE Group” business lines are purchase and sale of real estate, its lease and management. The holding is the largest lessor of all-purpose high quality commercial areas with state-of-the-art facilities in Old Riga. AS “Baltic RE Group” is investing in the Baltics with a long-term view, highly specific vision and a non-speculative approach for the creation of sustainable value.
For more information, please visit - http://www.balticregroup.com
Edīte Kārkliņa
Administrative Director
Phone: +371 67227205
E-mail: edite.karklina@balticregroup.com
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