INVL Baltic Farmland Signals Confidence with Dividend, Share Buyback Amid Profit Fluctuation

VILNIUS, LITHUANIA – April 30, 2026 – INVL Baltic Farmland, a key player in Lithuania's agricultural land investment sector, has reaffirmed its commitment to shareholder returns by approving a consistent dividend and a significant share buyback program. The decisions, made during the company's Annual General Shareholders Meeting, come alongside financial results for 2025 that reveal a nuanced picture of revenue growth, a planned dip in net profit from a record 2024, and performance that substantially outpaced internal forecasts.

Shareholders approved a dividend of EUR 0.12 per share for 2025, totaling approximately EUR 387 thousand. The company also re-elected its incumbent Board members for a new four-year term, ensuring leadership continuity as it navigates the evolving agricultural market.

A Strategy of Shareholder Returns

INVL Baltic Farmland's strategy places a clear emphasis on rewarding its investors. The approved EUR 0.12 dividend for 2025 matches the payout for 2024 and continues a history of consistent annual distributions. This move aligns with a newly approved Dividend Payment Policy, which, as the Board of the Company notes, targets a minimum dividend of EUR 0.10 per share. The consistent outperformance of this minimum target underscores the company's financial health and its dedication to sharing its success with shareholders.

Shareholders on record at the close of business on May 15, 2026, will be eligible for the dividend payout. The ex-dividend date is set for May 14, 2026, after which new buyers of the stock (ISIN code LT0000128753) will not be entitled to this specific dividend.

Further bolstering its capital return strategy, the company received authorization for a substantial share buyback program. INVL Baltic Farmland can now repurchase up to 10% of its own shares over the next 18 months. A reserve of EUR 3.08 million has been allocated for this purpose. The buyback will be executed within a defined price range: the minimum price is set at EUR 3.50 per share, while the maximum is capped at the last publicly disclosed consolidated equity value per share, which stood at EUR 6.25 at the end of 2025.

Share buyback programs are often interpreted by the market as a sign of management's confidence that its stock is undervalued. By reducing the number of shares in circulation, such programs can increase earnings per share (EPS) and provide a floor for the stock price, benefiting long-term shareholders who retain their holdings.

Deconstructing the 2025 Financials

At first glance, INVL Baltic Farmland's 2025 financial report presents a complex picture. The company's consolidated revenue grew a healthy 6.7% to EUR 891 thousand, driven by stable rental income from its portfolio of approximately 3,000 hectares of Lithuanian farmland. However, its net profit of EUR 816 thousand marked a 55.6% decrease from the previous year.

This apparent contradiction is resolved by looking deeper into the components of the company's profitability. The exceptionally high profit in 2024 was largely fueled by a significant 9.5% upward revaluation of its land assets. In 2025, the land value continued to appreciate but at a more moderate rate of 2.6%, bringing the portfolio's total value to EUR 23.3 million, or an average of EUR 7,570 per hectare.

Crucially, the 2025 net profit of EUR 816 thousand smashed the company's initial forecast of EUR 460 thousand by an impressive 77%. The initial forecast was conservatively based on the assumption of no change in land value. The positive, albeit smaller, revaluation was a primary driver in outperforming this target. Other non-forecasted events also influenced the bottom line, including a EUR 188 thousand charge for a deferred tax liability recalculation, prompted by a legislative increase in Lithuania's corporate income tax rate.

Excluding such one-off adjustments, the company’s performance demonstrates operational resilience. Despite challenges in the broader agricultural sector in 2025, including adverse weather and rising costs, the demand for leased land remained strong, securing a steady and growing revenue stream for the company.

Leadership Stability and Market Context

Signaling a vote of confidence in the company's long-term strategy, shareholders re-elected the entire Board for a new four-year term. The board comprises Chairman Alvydas Banys, Indrė Mišeikytė, and Tomas Bubinas, a team with deep and diverse expertise.

Alvydas Banys, a major shareholder with decades of experience in finance and investment, has been Chairman since 2014 and provides crucial strategic oversight. Tomas Bubinas brings a robust background in finance and auditing, with experience at major firms like PricewaterhouseCoopers and Teva Pharmaceuticals. Indrė Mišeikytė contributes expertise from her advisory and architectural background. This continuity ensures that the strategic vision that has guided the company's growth and shareholder-focused policies remains in place.

INVL Baltic Farmland operates within a dynamic market. The Lithuanian agricultural sector is a stable pillar of the national economy, though land prices remain relatively undervalued compared to neighboring EU countries. This presents both an opportunity for appreciation and a complex regulatory landscape. The demand for leased land is a key advantage for the company, as many farmers opt to rent rather than purchase land amid market uncertainties.

The company’s strategy of owning and renting out high-quality agricultural land positions it to benefit from long-term trends, including the EU’s Common Agricultural Policy (CAP) Strategic Plan for 2023-2027. This plan emphasizes sustainable farming and provides income support, which helps ensure the financial stability of INVL Baltic Farmland's tenants and, by extension, its own rental income.