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UPP Olaines OÜ Audited Annual Report 2020 (in English)

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With its 30.04.2021 announcement, UPP Olaines OÜ forwarded the audited
consolidated annual report for 2020, attested with the 30.04.2021 decision by
Member of the Board Marko Tali.

It was mentioned in the announcement that the audited English version is in
translation and it shall be forwarded to the Exchange latest by 04.05.2021.

With the present announcement we are releasing the UPP Olaines OÜ audited
consolidated 2020 annual report in English.


MANAGEMENT REPORT

General information

UPP  Olaines OÜ (hereinafter  the Company and  jointly with its subsidiaries the
Group)  was  established  for  the  purpose  of  the  financing, acquisition and
management  of  the  investment  property  Olaines Logistics Park (buildings and
registered  immovable). Olaines  Logistics Park  is located  in Sharlote, Olaines
County,   Olaines  Municipality,  Latvia,  cadastral  reference  8080 003 0029,
registered in the Olaine Land Cadastre under number 5439.

The  Company was established on 24 August 2017 and it had no economic activities
until 15 December 2017, when the cold storage facility of Olaines Logistics Park
was acquired.

The  commercial activities of the Company  are not affected by seasonal factors.
The commercial activities of the Company have no social or environmental impact.

The Company was established solely for the purpose of the financing, acquisition
and management of Olaines Logistics Park; therefore, no strategic changes in the
commercial activities of the Company have been planned.

The  management does not have  any information concerning trends, uncertainties,
claims,  obligations or events that  are likely to have  a significant impact on
the  prospects  of  the  Company  in  the  period following the reporting period
outside the regular commercial activities of the Company.

The structure of UPP Olaines OÜ Group as at 31 December 2020 is as follows:

Bonds  of UPP Olaines OÜ have been listed on the main list of the Nasdaq Tallinn
Stock Exchange since 29 November 2018.

UPP Olaines OÜ is a going concern.

Impact of COVID-19 on the economic activities of the Group

Coronavirus,  which started spreading all over the world at the beginning of the
financial  year and  caused a  global recession  in March 2020, also reached the
Baltic  States, which led to the closure  of borders to foreign nationals and of
schools, and panic buying of convenience goods. The scope of the consequences of
the recession caused by the pandemic is unclear, but there is no doubt that they
will be serious.

The  viral outbreak has had  no direct impact on  the economic activities of the
Group.  The virus has had an impact on the economic activities of companies that
lease  property to some extent, which may have an indirect impact on the Group's
performance  results. The best estimate  of the management board  is that if the
viral  outbreak and  the resulting  recession do  not worsen  significantly, the
impact  of  these  circumstances  on  the  Group's  performance  results will be
moderate due to the area of activities of the companies that lease property from
the Group.


Management report

The  total general administrative expenses of the reporting period were 151,122
(2019: 71,123) euros, which make up 5.74% (2019: 2.75%) of net lease income.

As  of  31 December  2020, the  Group's  total  assets  comprised 32,121,185 (31
December  2019: 31,675,413) euros, incl. the investment  property at fair value,
which  comprised 97.5% (31 December 2019: 97.6%) of assets.  The net debt of the
Group  was  23,803,960 (31  December  2019: 24,982,851) euros.  The net debt was
calculated  as  follows:  Cash  and  cash  equivalents  were subtracted from the
Group's  total loan and the subordinated  loan received from the parent company,
United Partners Property OÜ, was then subtracted from the result.

No  significant events  other than  regular operating  activities, including the
timely  receipt of rent  and utility charges,  took place from 1 January 2020 to
31 December 2020.

Financial overview of the year

The  Group's net lease income in 2020 was 2,633,558 (2019: 2,589,379) euros. The
increase  in the net lease  flow in the financial  year in comparison with other
financial years was caused by indexation and more efficient business activities.

The  Group's  operating  profit  for  the  financial  year  was 2,916,384 (2019:
2,649,256) euros.  The  increase  in  operating  profit in comparison with other
financial  years was caused by a lack  of extraordinary, one-off costs in 2020,
and  the  income  from  the  increase  in  the  value of investment property was
significantly larger than in the reference period.

The net profit for the financial year was 1,735,650 (2019: 1,399,103) euros. The
increase  in the net profit was  partially caused by the aforementioned reasons;
in  addition,  during  the  financial  year,  the  Group earned more income from
interest rate swaps than in the previous period.

The  services of an independent attested assessor are used to determine the fair
value of investment property, and profit from the revaluation of property in the
amount  of  346,688 euros  was  therefore  recognised  during the financial year
(2019: 147,000 euros).

There are no vacancies on the investment property as of the reporting date.


Events after the reporting date

Amendments to the Company's leases

On  15 January  2021, the  lease  entered  into  with Plesko Real Estate SIA was
terminated.   This   company   leased  a  total  of  1573 m(2)  of  storage  and
administrative space in Olaines Logistics Park.

On  15 March 2021, the lease  entered into with  Premier Restaurants Latvija SIA
was  terminated.  This  company  leased  a  total  of  2382 m(2)  of storage and
administrative space in Olaines Logistics Park.

On  18 January 2021, Olaines Logistics  SIA entered into  a five-year lease with
the  company NNL LV SIA. NNL  LV SIA leased a total  of 2663 m(2) of storage and
administrative  space. This company offers 3PL services to renowned companies in
the Baltic States, including Premia and Maxima.

On  16 April  2021, the  lease  entered  into  with  Girtekos  Logistika SIA was
supplemented  to  provide  them  with  an  additional  1177 m(2)  of storage and
administrative space.

These amendments to leases do not have a significant impact on the Group's lease
income  in 2021 with the  exception of the  first quarter of  2021, in which the
leased space was transferred and received.

Change in the structure of the logistics investments of United Partners Group OÜ

In  March  2021, United  Partners  Group  OÜ  was internally restructured into a
logistics  investment  group.  The  direct  parent  company  of  the Company had
previously  been  United  Partners  Property  OÜ,  which  included  the  housing
development  investments of United Partners  Group OÜ. The logistics investments
of  United Partners  Group OÜ,  incl. the  Company, now  belong to UPP Logistics
Properties OÜ, a management company completely owned by United Partners Property
OÜ. The aim of restructuring was to create separate administrative units for the
logistics property and housing property investments of United Partners Group OÜ.


Key financial reporting indicators of the financial year

--------------------------------------------
  (euros)                  2020        2019
--------------------------------------------
  Net lease income    2,633,558   2,589,379

  Operating profit    2,916,384   2,649,256

  Profit for period   1,735,650   1,399,103
--------------------------------------------


----------------------------------------------------------------------------
  (euros)                                          31.12.2020    31.12.2019
----------------------------------------------------------------------------
  Investment property                              31,320,000    30,909,000

  Interest-bearing loans                           27,428,633    28,492,625

  Interest-bearing loans excluding owner's loan    24,480,333    25,544,325
----------------------------------------------------------------------------


-------------------------------------------------------------------------------
 (euros)                                                             2020  2019
-------------------------------------------------------------------------------
 Net profit margin, % (Net profit/Net lease income)                 65.9% 54.0%

 ROA, % (Net profit/Average assets)                                 5.44%  4.4%

 ROE, % (Net profit/Average equity)                                 54.9% 59.1%

 Liquidity ratio, times ((Current assets-supplies)/Current
 liabilities))                                                       0.45  0.41

 DSCR (Operating profit/Principal repayments and interest payments
 of interest-bearing loans, excl. principal and interest payments
 of owner's loan)                                                     1.3   1.3
-------------------------------------------------------------------------------


Compliance with bond rules

Pursuant  to clauses 3.5.3 and  3.5.4 of the bond  rules of UPP  Olaines OÜ, the
management  represents and  warrants that  the DSCR  of UPP  Olaines OÜ  from 1
January  2020 to 31 December  2020 is larger  than or  equal to  1.1 and that no
early redemption events have occurred from 1 January 2020 to 31 December 2020.


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  and  Hallar  Loogma.  No  remuneration or other
benefits  are provided to the members of the management or supervisory boards of
the  Group's parent company.  However, remuneration has  been calculated for the
member  of the subsidiary's  management board. This  amounted to 4466 euros with
taxes in the reporting period and to 5340 euros in the previous financial year.

Other  than the  management board  and the  supervisory board,  the Group has no
employees.

UPP Olaines OÜ has formed an audit committee, which has three members.

/digitally signed/

Marko Tali

Chairman of the Management Board of UPP Olaines OÜ

30 April 2021, Tallinn


CONSOLIDATED FINANCIAL STATEMENTS OF UPP OLAINES OÜ

Consolidated statement of comprehensive income

-------------------------------------------------------------------------------
 (euros)                                          Note         2020        2019
-------------------------------------------------------------------------------
 Net lease income                                  6      2,633,558   2,589,379
-------------------------------------------------------------------------------
 Net lease income                                         2,633,558   2,589,379
-------------------------------------------------------------------------------


 General administrative expenses                   7      (151,122)    (71,123)

 Profit/(loss) from revaluation of investment
 properties                                        12       364,688     147,000

 Other income/expenses                                       69,260    (16,000)
-------------------------------------------------------------------------------
 Operating profit                                         2,916,384   2,649,256
-------------------------------------------------------------------------------


 Financial income and expenses                     8    (1,180,734) (1,250,103)
-------------------------------------------------------------------------------
 Profit before tax                                        1,735,650   1,399,153
-------------------------------------------------------------------------------
 Income tax                                        9              0        (50)

 Profit for financial year                                1,735,650   1,399,103


-------------------------------------------------------------------------------
 Comprehensive income for period under review             1,735,650   1,399,103
-------------------------------------------------------------------------------


Consolidated statement of financial position

---------------------------------------------------------------------------
  (euros)                                   Note   31.12.2020   31.12.2019
---------------------------------------------------------------------------
  Cash and cash equivalents                  10       676,373      561,474

  Trade receivables and other receivables    11       124,812      204,939
---------------------------------------------------------------------------
  Total current assets                                801,185      766,413



  Investment property                        12    31,320,000   30,909,000
---------------------------------------------------------------------------
  Total fixed assets                               31,320,000   30,909,000

  TOTAL ASSETS                                     32,121,185   31,675,413



  Trade creditors and other payables         13       369,491      358,762

  Derivatives                                16       363,979      455,204

  Loans payable                              15     1,064,004    1,064,000
---------------------------------------------------------------------------
  Current liabilities                               1,797,474    1,877,966



  Loans payable                              15    26,364,629   27,428,625
---------------------------------------------------------------------------
  Total long-term liabilities                      26,364,629   27,428,625

  TOTAL LIABILITIES                                28,162,103   29,306,591



  Share capital                              14          2500         2500

  Retained earnings                                 2,220,932      967,219

  Profit (loss) for financial year                  1,735,650    1,399,103
---------------------------------------------------------------------------
  TOTAL EQUITY                                      3,959,082    2,368,822



  TOTAL LIABILITIES AND EQUITY                     32,121,185   31,675,413
---------------------------------------------------------------------------


Information:

?Siim Sild

Managing Director

+372 5626 0107

[email protected]

UNITED PARTNERS