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UPP Olaines OÜ consolidated unaudited financial results for Q1 of 2021

UPP Olaines OÜ
·5-min read

MANAGEMENT REPORT FOR 3 MONTHS 2021

General information

UPP Olaines OÜ (hereafter ‘the Company’) was established for the purpose of funding, acquiring and managing the real estate investment of Olaines Logistics Park: (buildings and land) located at “Šarlotes”, Olaines county, Olaines parish, Latvia, cadastre number 8080 003 0029, registered in the Land Register compartment No.5439 of the city of Olaine parish. The Company was established on 24.08.2017 and had no economic activity until 15.12.2017, when it acquired the cold storage warehouse Olaines Logistics Park.

The management board is aware of no trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on the Company’s prospects for the period after the reporting period of these financial statements outside the course of its regular business activities.

UPP Olaines OÜ is operating based on going concern.

Financial commentary for the first quarter of 2021

Net rental income was 600 198 euros for the 3 months of 2021 (2020 3 months: 657 214). Operating profit was 562 109 euros for the 3 months of 2021 (2020 3 months: 619 887). Net income was 303 501 euros for the 3 months of 2021 (2020 3 months: 358 561).

The company’s sole business activity is to collect rental revenue, manage the Olaine property and service its liabilities to lenders and investors. Liabilities include the subordinated bonds with a fixed interest rate and the investment loan which’ rate is also fixed with an interest rate swap agreement. On the revenue side the company earns stable triple-net rental income from reputable tenants, which is fixed with medium-term agreements but is subject to indexation. Due to the economically fixed nature of the company, there needs to be major event in the overall economy or in the company's business activities for them to have significant effect on the company’s financial results.

Changes in lease agreements

On 15th January 2021 the lease agreement expired with Plesko Real Estate SIA, who leased 1,573 sqm of warehousing and administrative premises.

On 15th March 2021 the lease agreement expired with Premier Restaurants Latvia SIA, who leased 2,382 sqm of warehousing and administrative premises.

On 18th January 2021 a new lease agreement was concluded with NNL LV SIA for 5 years. NNL LV SIA will lease 2,663 sqm of warehousing and administrative premises. The company is offering 3PL services to known Baltic clients such as Premia and Maxima.

On 16th April 2021 the lease agreement with Girtekos Logistikos SIA was amended, SIA Girtekos Logistikos will lease additional 1,177 sqm of warehousing and administrative premises.

The changes in lease agreements will not impact the Group’s 2021 income noticeably, except for the 1st quarter of 2021 when the handing over of the premses took place.

Changes in United Partners Group logistics investments structure

In March 2021 United Partners Group OÜ restructured its logistics investment holding structure. Previously the direct parent of the Company was United Partners Property OÜ, which also managed United Partners Group residential development investments. As of March 2021 United Partners Group OÜ logistics investment holding companies, including the Company, are now under the direct ownership of holding company UPP Logistics Properties OÜ, which in turn is under the ownership of United Partners Property OÜ. The goal of the restructuring was to create separate administration units for United Partners Goup logistics and residential investments.

Key indicators of financial performance and position for 3 months 2021

(in EUR)

Q1 2021

Q1 2020

Net rental income

600 198

657 214

Operating profit

562 109

619 887

Profit for the period

303 501

329 107


(in EUR)

31.03.2021

31.03.2020

Investment property

31 320 000

30 909 000

Interest-bearing loans

27 156 360

28 226 632

Interest-bearing loans less shareholder loan

24 214 332

25 278 332


(in EUR)

Q1 2021

Q1 2020

Net profit margin (Total comprehensive income for the period / Net rental income)

50,6%

49%

ROA (Net profit for the period / Average total assets for the period)

0,94%

1,04%

DSCR (Operating profit / Loan principal and interest payments on interest-bearing loans)

1,1

1,2


Management board and supervisory board

The management board of UPP Olaines OÜ has one member: Marko Tali, the chairman of the management board.

The supervisory board of UPP Olaines OÜ has three members: Mart Tooming, Tarmo Rooteman, Hallar Loogma.

No remuneration or other benefits have been allotted to the members of the management board and supervisory board.

There are no employees in the company besides the members of the management and supervisory board.


CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Condensed consolidated interim statement of comprehensive income

(in EUR)

Note

Q1 2021

Q1 2020

Net rental income

5

600 198

657 214

Net rental income

600 198

657 214

General and administrative expenses

(38 089)

(37 327)

Operating profit

562 109

619 887

Financial income / (cost)

(258 608)

(290 780)

Profit before income tax

303 501

329 107

Income tax

0

0

Profit for the period

303 501

329 107

Total comprehensive income for the period

303 501

329 107


Condensed consolidated interim statement of financial position

(in EUR

Note

31.03.2021

31.03.2020

Cash and cash equivalents

671 494

534 344

Trade and other receivables

197 408

313 568

Total current assets

868 902

847 912

Investment property

31 320 000

30 909 000

Total non-current assets

31 320 000

30 909 000

TOTAL ASSETS

32 188 902

31 756 912

Trade and other payables

438 615

379 344

Financial derivatives

331 384

448 432

Loans and borrowings

6

1 064 004

1 064 004

Total current liabilities

1 834 003

1 891 780

Loans and borrowings

6

26 092 356

27 162 628

Total non-current liabilities

26 092 356

27 162 628

TOTAL LIABILITIES

27 926 359

29 054 408

Share capital

2 500

2 500

Retained earnings

4 260 043

2 700 004

TOTAL EQUITY

4 262 543

2 702 504

TOTAL EQUITY AND LIABILITIES

32 188 902

31 756 912


Siim Sild

+372 5626 0107

siim.sild@unitedpartners.ee

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