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VAS ‘Valsts nekustamie īpašumi’ turnover reaches EUR 22.63 million in first six months of 2023


According to VAS ‘Valsts nekustamie īpašumi’ (VNĪ) board chairman Renārs Griškevičs, in the first half of 2023, the turnover of VNĪ was 22.63 million euros, with a net profit of 2.64 million.

VNĪ turnover for the first six months of 2023 is EUR 22.63 million, which is 2% or EUR 0.47 million higher than in the same period last year. Its EBIDTA in the first half of 2023 was 10.32 million euros, remaining at the 2022 level, while 2.64 million in net profits means a reduction of 56% compared to the first six months last year. 

‘The first half of the year was a very successful time for us, because we managed to complete and even go beyond the plan for the sale and disposal of real estate we had, thus achieving our goal, which is to keep a high-quality portfolio of state real estate.  Good auction results made it possible to balance the rising interest payments for long-term loans, which is something VNĪ has to face just like other companies in Latvia,’ Griškevičs explained.

 In the first six months of 2023, VNĪ’s income from the leasing of real estate fell 0.07 million euros year-on-year, down to 11.5 million. The income generated as part of managing and building state-owned real estate in these six months rose by 0.88 million, compared to the same period last year, up to 7.35 million euros.

The biggest deals in the first half of 2023 was the sale of real properties at Krišjāņa Valdemāra iela 17A (for 2.635 million euros), Merķeļa  iela 11 (2.565 million), Audēju iela 7 (1.673 million), Rankas iela 9A and 9B (0.6 million) through open public auctions.

Overall, across the first six months of the year, the company sold through auctions 35 properties, for a total of 8.38 million euros. These included 12 buildings in poor technical condition.

In general, the activities of VNĪ in 2023 are in line with the company’s 2023–2025 medium-term operational strategy and its action plans. VNĪ expects to generate a profit across the entire year.

In Q2 2023, the shareholder meeting of the company decided to increase its share capital to 155,902,594 euros, whereas the equity of VNĪ was 295,004.028 euros as of 30 June.

VNĪ provides professional real estate management and administration for 365 building and structure properties, comprising 1100 buildings with a total area of 0.95 million square metres, as well as land beneath structures with a total area of 602 hectares, and 3536 land properties with a total area of 903 hectares. VNĪ is one of 23 Latvian companies that received the highest platinum award in the Sustainability Index evaluation of the Institute for Corporate Sustainability and Responsibility, demonstrating good governance and sustainability of its operations. The company was founded in 1996 and its sole shareholder is the Ministry of Finance.