Financial news

In comparison to the previous financial year first 6 month, Baltic RE Group Concern in first 6 month period of financial year 2017 has increased its turnover for 14%
In comparison to the previous financial year first 6 month, Baltic RE Group Concern in first 6 month period of financial year 2017 has increased its turnover for 14%, reaching income in amount of EUR 2 310 871.

The analysis of the Group’s consolidated financial statement shows, that consolidated statement of financial position total is EUR 63 624 454. Non-current assets comprise 93% of the statement of financial position total, of which 80% (EUR 47 074 083) comprise of investment property (Group’s real estate). Cash comprise 45% ( EUR 2 055 842) of the current assets. Equity comprises 38% (EUR 24 407 184) of the statement of financial position total. While non-current liabilities comprise 59% (EUR 37 605 993) and current liabilities comprise 3% (EUR 1 611 277). 

AS Baltic RE Group and its subsidiaries mainly lease premises and provide estate management services. The Baltic RE Group includes AS Baltic RE Group and its controlled daughter companies: SIA Key 1, SIA Key 2, SIA Key 6, SIA Key 15, SIA Skunu 19, SIA TER Properties and SIA BB 21.
 
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. As a result of the acquisition, the Parent company obtained control of SIA “TER Properties” subsidiary SIA “BB 21” which owns real estate at Brīvības boulevard 21, Riga, whose reconstruction works shall be completed during 2H 2017.

In May 2017 AS Baltic RE Group shareholders approved resolutions on the increase of the share capital and approval of the rules for the increase of share capital on the possibility to convert part of the registered shares into bearer shares in the light of facilitating the chances of a potential IPO process. The newly registered share capital of the Parent company after the completion of the capital increase will be EUR 30 000 000. 

In June 2017 AS Baltic RE Group concluded with ABLV Bank an addendum to the existing portfolio loan agreement for transforming it into a fixed rate loan while increasing the total loan amount to EUR 31 000 000, including in the real estate portfolio perimeter the property at Brivibas Boulevard 21, Riga.

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.

For the 2H 2017 the Board of AS Baltic RE Group is planning further activities expanding its property portfolio and optimizing current business activities, strengthening the companies with loyal customers and reliable partner and continuously improving the quality management system. AS Baltic RE 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. 

In comparison to the previous financial year, AS Baltic RE Group in financial year 2016 has increased its turnover for 28%
In comparison to the previous financial year, Baltic RE Group in financial year 2016 has increased its turnover for 28%, reaching income in amount of EUR 4 144 382.

The Group ended the reporting period with a profit of EUR 26 297 respectively and cash and cash equivalent available for 4 366 860 EUR. Investment property comprise 80% (38 833 790 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. During the reporting period the Parent company increased the share capital up to EUR 25 000 000 through the equity contributions. The Group’s equity as at 31 December 2016 is positive and amounts to EUR 24 262 165.

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.

AS Baltic RE Group mainly leases premises and provides real estate management services and is engaged in the development of the subsidiaries and cash rational investing. The Group Baltic RE Group includes AS Baltic RE Group and its subsidiaries: Baltic Re S.p.a, SIA KEY 1, SIA Key 2, SIA KEY 6, SIA Key 15, SIA Skunu 19.

The Group companies mainly deals with the lease / rent of premises and real estate management services. The Parent company is also engaged in the strategic development of the subsidiaries.

For the year 2017 the Board of AS Baltic RE Group is planning further activities of development of new real estate research and optimization and development of current business activities. In 2017 the Group’s subsidiaries do not intend to change their core business activity. It is planned to strengthen the companies with loyal customers and reliable partners; continuously improve the quality management system, as well as to find new customers and increase sales; the Group plans to optimize costs. 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.

In early 2017 AS Baltic RE Group announced reorganization of its subsidiary Baltic Re S.p.a., and

in February 2017 started a process to improve the fiscal and operational efficiency through that the fully owned Italian subsidiary Baltic Re S.p.a, will be reorganized and incorporated in its subsidiary SIA Skunu 19. As a result of the reorganization AS Baltic RE Group will gain direct control of the Baltic Re S.p.a subsidiary SIA Skunu 19.

The merger will have no impact on financial structure and will not cause any capital dilution effect as the companies involved in the process are (directly or indirectly) fully owned by AS Baltic RE Group.

AS Baltic RE Group plans to complete the reorganization till July 31, 2017.

Baltic RE Group Interim Report January – June, 2016
The Board of Baltic Re Group has accepted 1st half year 2016 audited consolidated annual report 2016 on 15 September 2016.

According to the audited consolidated financial results, the Baltic RE Group’s net turnover for the period from 1 January 2016 to 30 June 2016 is 2.02 million EUR. The Baltic RE Group ended the 1st half year reporting period with a profit of EUR 118 227. During the 1st year reporting period the Parent company (AS “Baltic RE Group”) has increased the share capital up to EUR 25 000 000.

The Baltic RE Group’s financial data analysis shows that consolidated statement of financial position total is EUR 51 615 913. Investment property comprise 76% (EUR 39 145 668) of the consolidated statement of financial positions total. Investment property consists of the Baltic RE Group’s real estates, which is leases/ rented or will be leased/ rented.

Arita Rimkusa
Arita Rimkusa
Office manager

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