Published: 2021-04-30 19:38:03 CEST
UPP Olaines
Quarterly report

UPP Olaines OÜ consolidated unaudited financial results for Q1 of 2021

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 2021Q1 2020
Net rental income  600 198657 214
Operating profit  562 109619 887
Profit for the period  303 501329 107


(in EUR)31.03.202131.03.2020
Investment property                       31 320 000 30 909 000
Interest-bearing loans 27 156 36028 226 632
Interest-bearing loans less shareholder loan24 214 33225 278 332


(in EUR)Q1 2021Q1 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 2021Q1 2020
Net rental income5  600 198657 214
Net rental income   600 198657 214
      
General and administrative expenses   (38 089) (37 327)
Operating profit   562 109619 887
      
Financial income / (cost)     (258 608) (290 780)
Profit before income tax   303 501329 107
Income tax   00
Profit for the period   303 501329 107
      
Total comprehensive income for the period   303 501329 107


Condensed consolidated interim statement of financial position

(in EURNote31.03.202131.03.2020
Cash and cash equivalents 671 494534 344
Trade and other receivables 197 408313 568
Total current assets 868 902847 912
    
Investment property 31 320 00030 909 000
Total non-current assets 31 320 00030 909 000
TOTAL ASSETS 32 188 90231 756 912
    
Trade and other payables 438 615379 344
Financial derivatives 331 384448 432
Loans and borrowings61 064 0041 064 004
Total current liabilities 1 834 0031 891 780
    
Loans and borrowings626 092 35627 162 628
Total non-current liabilities 26 092 35627 162 628
TOTAL LIABILITIES 27 926 35929 054 408
    
Share capital 2 5002 500
Retained earnings 4 260 0432 700 004
TOTAL EQUITY 4 262 5432 702 504
    
TOTAL EQUITY AND LIABILITIES 32 188 90231 756 912


Siim Sild

+372 5626 0107

siim.sild@unitedpartners.ee

Attachment



Olaines Q1 report 2021 ENG draft.pdf