INVL Baltic Real Estate Sees 34% Profit Surge on Strategic Bets

VILNIUS, LITHUANIA – March 17, 2026 – INVL Baltic Real Estate has announced a robust 34% increase in its audited consolidated net profit for 2025, reaching EUR 3.67 million. The impressive growth, up from EUR 2.74 million in 2024, comes amid a complex Baltic real estate market and highlights the success of the company's strategy focused on increasing asset value through key development projects.

The real estate investment company’s consolidated revenue saw a modest increase of 2.8%, climbing to EUR 4.1 million for the year. However, the primary driver of profitability was a significant 12.2% rise in the value of its managed real estate portfolio, which stood at EUR 47.8 million at the end of 2025.

“The key driver of profit growth was the increased value of managed assets,” said Vytautas Bakšinskas, the real estate fund manager at INVL Asset Management, which manages INVL Baltic Real Estate. “Last year, we achieved significant strategic milestones: we obtained a construction permit for the Palanga and Vilnius Street project and prepared for the major renovation of the former ‘Pramogų bankas’, which we have already started this year. These projects will form the foundation for further value creation for our investors.”

Navigating a Divergent Market

INVL Baltic Real Estate’s strong performance is particularly noteworthy when viewed against the backdrop of the broader Baltic real estate market. While the region is showing signs of recovery, 2025 was characterized by a mixed outlook. Investment volumes across the Baltics struggled in 2024, falling to a decade-low of EUR 830 million before a projected rebound toward EUR 1 billion in 2025.

Market analysis indicates a divergence, with secondary office and retail assets facing subdued valuations, while prime, ESG-compliant properties and alternative assets like co-working spaces are experiencing strong demand. INVL’s strategy appears to be perfectly aligned with this trend. By focusing on high-quality assets in prime locations and investing in modern, flexible workspaces, the company has successfully navigated market headwinds and capitalized on emerging opportunities. The company's focus on prime properties in Vilnius and Riga has allowed it to maintain high occupancy and rental income, even as some market segments see vacancy rates rise.

A Strategic Bet on the Future of Work

A cornerstone of INVL Baltic Real Estate's forward-looking strategy is its significant investment in the co-working sector. The company has commenced the major renovation of the former "Pramogų bankas" (Entertainment Bank) building in Vilnius, a project poised to transform the property into a state-of-the-art flexible workspace.

The renewed building will host the second Talent Garden Vilnius co-working space in the city, a sprawling 3,500-square-meter facility. The design includes 48 premium-class private offices alongside co-working zones capable of accommodating 325 workstations. The renovation is comprehensive, involving a fundamental renewal of the building's interior and exterior, with plans for additional windows, panoramic skylights, and modernized engineering systems. To fund this ambitious refurbishment, the company secured an additional EUR 8 million credit line, signaling strong confidence in the project's future success.

This move taps directly into the evolving nature of work in a post-pandemic world. Across the Baltics, companies are increasingly downsizing traditional office footprints in favor of cost-efficient, flexible, and well-equipped spaces. The demand for fitted-out offices and flexible lease terms is particularly high in Vilnius, making the new Talent Garden a timely and strategic addition to the city's commercial real estate landscape.

Core Portfolio Stability and Investor Confidence

While new developments are driving future growth, the stability of INVL Baltic Real Estate's existing portfolio provides a solid foundation. The company’s largest managed office building at Palangos Street 4, home to the first Talent Garden Vilnius, maintained a high 90% occupancy rate and generated EUR 1.5 million in net rental income in 2025. Meanwhile, the Žygio Business Centre achieved a perfect 100% occupancy, contributing EUR 0.38 million in rental income. The renovated property at Vilniaus Street 37 also boasts a 91% occupancy rate with a mix of successful restaurant and retail tenants.

This consistent performance translates directly into shareholder value. The company's Net Asset Value (NAV) per share grew to EUR 3.55 at the end of 2025, a notable increase from EUR 3.17 a year prior. This growth, coupled with a history of reliable dividends, has solidified investor confidence. Since becoming a collective investment undertaking in 2016, INVL Baltic Real Estate has paid out a total of EUR 2.38 per share in dividends and maintains a consistent annual payout schedule.

The company's structure as a closed-ended investment company (UTIB), accessible to retail investors, further broadens its appeal. This model, combined with strong performance metrics, has earned it positive marks from market analysts, with some AI-driven models issuing a "Buy" rating based on its profitability and strong positioning within the Lithuanian market. With a long-term operational horizon extending to 2046 and beyond, the company is structured for sustained value creation.

The combination of renovating landmark properties for modern use and diligently managing its core assets demonstrates a balanced strategy. As projects like the new Talent Garden come online and the Palanga and Vilnius Street development moves forward, INVL Baltic Real Estate appears well-positioned to continue its growth trajectory and adapt to the dynamic needs of the Baltic region's economy.