Financial news

In comparison to the previous financial year first 6 month, Baltic RE Group Concern in first 6 month period of financial year 2018 has increased its turnover for 16.8%
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.

The restrictions imposed on AS ABLV Bank by the Financial and Capital Market Commission and AS ABLV Bank notice on self-liquidation in February 2018 did not did not cause any negative economic / financial effects for AS Baltic RE Group and its subsidiaries, nor did it cause operational difficulties.

The Group’s revenue for the six months ended 30 June 2018 is EUR 2 699 685, which increased by 16.8% comparing with the six months ended 30 June 2017. The Group ended the reporting period with a profit of EUR 228 498 respectively.

The analysis of the Group’s condensed interim consolidated financial statements shows, that condensed interim consolidated statement of financial position total is EUR 61 891 197.

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.

 

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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