Presentation
Agro Finance REIT is a licensed joint-stock company - special purpose vehicle for securitization* of real estate established on 31 Jan., 2006. The company is specialized in investments in agricultural land. Its main activity consists in the buying out of plots of quality arable lands, fragmented after the restitution in small lots with multitude of owners, and their re-allocation in large massifs on market principle, the so called consolidation. The consolidated massifs which provide a possibility for more efficient use compared to the small single plots are subsequently granted on lease for cultivation to agricultural producers or co-operatives.
* Securitization of real estates: investment of cash, raised through the issue of securities, in real estates (agricultural lands, landed properties in forest territories or properties in urbanized territories, designated for residential, manufacturing, resort, sports and entertainment functions), by means of buying of title and other real rights over them, with the purpose of their provision for management, renting, leasing,tenancy and /or their sale.
Investment Objectives
Agro Finance REIT operates as a kind of collective investment scheme which invests in real estate. The major investment objective of Agro Finance REIT is increase of the investments value and obtaining of current yield with risk controlling, including also through diversification of the real estates portfolio.
Major Investment Objectives
- retaining and increase of the market price of the shares issued by the Company, by obtaining stable earnings with balanced risk spreading;
- ensuring a current yield to the shareholders in the form of cash dividend;
- generation of profit from the growth in the real estates value upon their sale;
- ensuring liquidity of the shareholders’ investment by admittance of the company’s shares for trading on a regulated market.
The professionalism of the experts of Agro Finance REIT, as well as the knowledge and following the trends on the agricultural land market in Bulgaria are factors guaranteeing the purchase of quality plots of agricultural land, which are expected in future to increase their value and to bear stable revenues to the Fund from its leasing.
