UAB Capitalica Baltic Real Estate Fund I: Capitalica Baltic Real Estate Fund earned a consolidated net profit of EUR 1.7 million last year

Capitalica Baltic Real Estate Fund I Group, a real estate (RE) fund managed by
the SBA Group company Capitalica Asset Management, ended 2020 on a profitable
note, with an increased revenue and asset value. The Group managed to avoid the
impact of the coronavirus pandemic, which negatively affected the commercial
assets segment, so it is also expected to end the current year profitably. 

According to the reporting data in the audited consolidated financial
statements of the international audit and consulting company Ernst & Young
Baltics, the Capitalica Baltic Real Estate Fund I Group increased its
consolidated sales revenue by 10.4% in 2020, up to EUR 4.824 million, and
earned a profit of EUR 1.746 million (the previous year this amounted to EUR
4.3 million). 

Last year, the Group's assets increased by 5.4% reaching up to EUR 68.719
million, with the value of the investment assets increasing by 3.7%: from EUR
58.982 million to EUR 61.167 million. 

"The management plans to continue working profitably and to make a profit in
2021," revealed the audited financial statements of the Group. In the report,
the Group confirmed that the coronavirus COVID-19 pandemic that started last
year, and the resulting situation, did not have a significant impact on the
Group's financial results, also stating that "the same negligible impact is
expected and in the results for 2021." 

Commenting on the results of the Group's activities, the manager Andrius
Barštys noted that the collection of promising real estate has allowed the Fund
and its Group to remain strong during the pandemic, particularly with regard to
the project is being further developed in Riga. 



"Last year, when the COVID-19 pandemic broke out, we responded quickly to the
situation and successfully adapted to the new circumstances and made the right
decisions. As a result, we ended the year profitably. We are now purposefully
pursuing our main goal, which is to develop managed businesses operations in
order to achieve sustainable and profitable growth," said A. Barštys. 

The amounts payable and liabilities within one year amounted to EUR 2.4 million
at the end of December 2020 and EUR 37.2 million after one year, respectively -
2.3 times less and 15% more when compared to 2019. 

Last year, the Fund, which has issued a three-year bond issue worth EUR 3
million (with 6.5% annual interest), managed business centres such as Kauno
Dokas and Vilnius 135, as well as the shopping centre Luize in Klaipeda, and is
developing the VERDE office complex project in Riga, which meets the standards
for the highest energy efficiency as a NZEB (Nearly Zero Energy Building). 

The area of the real estate objects managed by the Capitalica Baltic Real
Estate Fund I amounts to 33.7 thousand square metres. In 2020, occupancy of the
commercial real estate area managed by the Group during the pandemic reached as
much as 99.7 percent. 

It is stated in the consolidated financial statements of the Group that the
construction of the first phase of VERDE is planned to be completed in the
second half of 2022, while the second phase is expected to be completed in the
first half of 2023. 

The Capitalica Baltic Real Estate Fund I invests in the Baltic real estate
market with a focus on commercial real estate, although the Fund's articles of
association also allow to invest in residential real estate. The Fund is also
interested in the early stages of development - real estate objects that are
still under construction and those that have already been completed. 

Capitalica Asset Management, which manages the Capitalica Baltic Real Estate
Fund I, is engaged in the management of commercial real estate in the Baltic
States. The investment management company was established in 2016. Its
controlling block of shares (70%) belongs to one of the largest Lithuanian
capital business groups, SBA, while the remaining 30% of the shares belong to
the A. Barštys company Fox Holdings. 

For more information:

Andrius Barštys,

CEO of Capitalica Asset Management

[e-mail]

[phone]

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