Published: 2020-03-02 15:33:22 CET
UPP Olaines
Quarterly report

UPP Olaines OÜ consolidated unaudited financial results for fourth quarter and 12 months of 2019

MANAGEMENT REPORT FOR 12 MONTHS 2019

Financial commentary for the fourth quarter and financial year of 2019

Net operating revenues were 654 287 euros for the fourth quarter of 2019, increased by 15% from 569 252 euros for the fourth quarter of 2018. Net operating revenues for the financial year 2019 were 2 588 257 euros, increased by 6% from 2 447 108 euros for the financial year 2018. The quarterly increase in net operating revenues is due to the accounting of the 2018 land tax in fourth quarter, where the land tax for the whole financial year was accounted for the fourth quarter of 2018, leading to unproportionally high land tax expense for the period and reducing the net operating revenue compared to fourth quarter of 2019. The annual increase in net operating revenues is due to indexation of rent and increased efficiency in operations.

Adjusted net operating income was 622 377 euros for the fourth quarter of 2019, increased by 17% from 532 126 euros for the fourth quarter of 2018. Adjusted net operating income for the financial year 2019 was 2 502 077 euros, increased by 10% from 2 277 771 euros for the financial year 2018. The quarterly increase in adjusted net operating income is due to the aforementioned accounting for the 2018 land tax. The annual increase in adjusted net operating income is due to indexation and increased efficiency in operations and management of the Company.

Net income attributable was 623 900 euros for the fourth quarter of 2019, increase by fourfold from 109 481 euros for the fourth quarter of 2018. Net income attributable for financial year 2019 was 1 391 660 euros, doubled from 712 082 euros for the financial year 2018. The quarterly increase in net income attributable is partly due to the aforementioned accounting for the 2018 land tax in the fourth quarter of 2018 and partly due to the 112 000 euros in financial income from the IRS agreement for the fourth quarter of 2019. The annual increase in net income attributable is due to the transaction costs which reduced the net income attributable for 2018, the increased efficiency in operations and management of the Company, and due to the IRS agreement creating financial income for the first time for the reporting period.

At the end of the reporting period the Company ordered the assessment of the fair value of the Investment property. The valuation was carried out by accredited real estate evaluators.

After the reporting period there was a change in the Group structure, where on January 22nd 2020 the subsidiaries SIA Olaines Logistics and SIA Olaines Logistics Parks were merged. The merger was planned and part of normal management of the business, referred to also in the note issue terms and conditions, where the target SIA Olaines Logistics Parks was merged into the acquirer SIA Olaines Logistics. The merger took somewhat longer compared to mergers in Estonia and Lithuania due to the peculiarities of the Latvian legislation. The merger will further increase the efficiency of the Company’s operations and management. Interim report at hand has the Group structure listed in its’ former form, future interim reports will include the updated Group structure.


Key indicators of financial performance and position for 12 months 2019

(in EUR)Q4 2019Q4 201812 months 201912 months 2018
Net rental income654 287 569 252 2 588 257 2 447 108
Operating profit769 377 532 1262 649 077 2 277 771
Profit for the period623 900  109 4811 391 660 712 082


(in EUR)31.12.201931.12.2018
Investment property  30 909 000   30 762 000
Interest-bearing loans   28 491 624   29 656 633
Interest-bearing loans less shareholder loan  25 543 324   26 608 333


 12 months 2019
Net profit margin (Total comprehensive income for the period / Net rental income)54%
ROA (Net profit for the period / Average total assets for the period)4,4%
DSCR (Operating profit / Loan principal and interest payments on interest-bearing loans)  1.1



CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Condensed consolidated interim statement of comprehensive income

(in EUR)NoteQ4 2019Q4 201812 months 201912 months 2018
Net rental income5654 287569 252 2 588 2572 447 108
Net rental income 654 287569 252 2 588 2572 447 108
      
General and administrative expenses   (31 910) (37 126)(86 180) (169 337)
Other income / (cost) 147 0000 147 000 0
Operating profit 769 377 532 126 2 649 0772 277 771
      
Financial income / (cost) (145 477) (422 645)  (1 257 417) (1 565 689)
Profit before income tax 00 00
Profit for the period     
  623 900  109 481 1 391 660712 082
Total comprehensive income for the period 623 900109 4811 391 660712 082


Condensed consolidated interim statement of financial position

(in EURNote31.12.201931.12.2018
Cash and cash equivalents 561 462426 691
Trade and other receivables 204 939300 576
Total current assets 766 401727 267
    
Investment property 30 909 00030 762 000
Total non-current assets 30 909 00030 762 000
TOTAL ASSETS 31 675 40131 489 267
    
Trade and other payables 366 189446 036
Financial derivatives 456 209416 879
Loans and borrowings61 064 0001 064 004
Total current liabilities 1 886 3981 926 919
    
Loans and borrowings627 427 62428 592 629
Total non-current liabilities 27 427 62428 592 629
TOTAL LIABILITIES 29 314 02230 519 548
    
Share capital 2 5002 500
Retained earnings 2 358 879967 219
TOTAL EQUITY 2 361 379969 719
    
TOTAL EQUITY AND LIABILITIES 31 675 40131 489 267


Siim Sild

Director

+372 5626 0107

siim.sild@unitedpartners.ee

Attachment


Olaines Q4 report 2019 ENG 02.03.20.pdf