Management commentary for the 6 months of 2020
Net rental income was 1 308 860 euros for the 6 months of 2020 (2019 6 months:
1 291 518). Operating profit was 1 228 236 euros for the 6 months of 2020 (2019
6 months: 1 244 800). Net income was 627 652 euros for the 6 months of 2020
(2019 6 months: 454 710).
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.
Key indicators of financial performance and position for 6 months 2020
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(in EUR) Q2 2020 Q2 2019 6 months 2020 6 months 2019
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Net rental income 651,646 639,720 1,308,860 1,291,518
Operating profit 608,349 600,653 1,228,236 1,244,800
Profit for the period 328,545 187,237 657,652 454,710
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(in EUR) 30.06.2020 31.12.2019
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Investment property 30,909,000 30,909,000
Interest-bearing loans 27,960,000 28,492,625
Interest-bearing loans less shareholder loan 25,012,331 25,544,325
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6 months 2020
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Net profit margin (Total comprehensive income for the period /
Net rental income) 50%
ROA (Net profit for the period / Average total assets for the
period) 2.1%
DSCR (Operating profit / Loan principal and interest payments on
interest-bearing loans) 1.2
Management board, supervisory board and audit committee
The management board of UPP Olaines OÜ has one member: Marko Tali, 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 are provided to the members of the management
board and the supervisory board.
Other than the management board and the supervisory board, the Company has no
employees.
In 2020 UPP Olaines OÜ formed an audit committee, which has three members.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Condensed consolidated interim statement of comprehensive income
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(in EUR) Note Q2 2020 Q2 2019 6 months 2020 6 months 2019
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Net rental income 5 651,646 639,720 1,308,860 1,291,518
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Net rental income 652,646 639,720 1,308,860 1,291,518
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General and
administrative expenses (43,297) (24,067) (80,624) (31,718)
Other income / (cost) 0 (15,000) 0 (15,000)
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Operating profit 608,349 600,653 1,228,236 1,244,800
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Financial income /
(cost) (279,804) (413,416) (570,584) (790,090)
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Profit before income
tax 328,545 187,237 657,652 454,710
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Profit for the period 328,545 187,237 657,652 454,710
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Total comprehensive
income for the period 328,545 187,237 657,652 454,710
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Condensed consolidated interim statement of financial position
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(in EUR Note 30.06.2020 31.12.2019
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Cash and cash equivalents 555,735 561,474
Trade and other receivables 392,830 204,939
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Total current assets 948,565 766,413
Investment property 30,909,000 30,909,000
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Total non-current assets 30,909,000 30,909,000
TOTAL ASSETS 31,857,565 31,675,413
Trade and other payables 431,635 358,749
Financial derivatives 434,250 455,217
Loans and borrowings 6 1,064,004 1,064,000
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Total current liabilities 1,929,889 1,877,966
Loans and borrowings 6 26,896,627 27,428,625
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Total non-current liabilities 26,896,627 27,428,625
TOTAL LIABILITIES 28,826,516 39,306,591
Share capital 2,500 2,500
Retained earnings 3,028,549 2,366,322
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TOTAL EQUITY 3,031,049 2,368,822
TOTAL EQUITY AND LIABILITIES 31,857,565 31,675,413
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Siim Sild
Director
+372 5626 0107
siim.sild@unitedpartners.ee
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