Financial commentary for the fourth quarter and twelve months of 2023
Net rental income was 613 708 euros in 4Q 2023 (657 849 euros in 4Q 2020) and 2 478 829 euros for the twelve months of 2023 (2 637 007 euros for 12 months of 2020). Operating income was 582 177 euros in 4Q 2023 (618 950 euros in 4Q 2020) and 2 275 598 euros for the twelve months of 2023 (2 482 439 euros for 12 months of 2020). Net income was 335 878 euros in 4Q 2023 (251 417 euros in 4Q 2020) and 1 286 634 euros for the twelve months of 2023 (1 370 964 euros for 12 months 2020).
Decrease in Net rental income in 4Q was due to property repairs and investments the Group has undertaken in Olaines Logistics Park. The Group also incurred a loss in income due to lesse change and the related repair works in 1Q, which had impact on Net rental income for 2023. In 3Q the Group incurrued an energy efficiency fee which had further impact on the Operating income for 2023. The general and administrative expenses were in line with expectations for 2023 and have had no impact on Group’s financial results. Decrease in Net income is due to aforementioned factors. Overall the Group’s financial results are in line with management expectations.
There were no extraordinary expenses or events during the reporting period, other than the aforementioned energy efficiency fee. Apart from energy efficiency and green energy investments that the Group is planning for 2023, the management is not aware of any circumstances that could severely impact the Group’s financial results in 2023 as of the reporting date.
Key indicators of financial performance and position for 12 months 2023
| (in EUR) | 4Q 2023 | 4Q 2020 | 12 months 2023 | 12 months 2020 |
| Net rental income | 613 708 | 657 849 | 2 478 829 | 2 637 007 |
| Operating income | 582 177 | 618 950 | 2 275 598 | 2 482 439 |
| Net income | 335 878 | 251 417 | 1 286 634 | 1 370 964 |
| (in EUR) | 31.12.2021 | 31.12.2020 | |||
| Investment property | 31 320 000 | 30 909 000 | |||
| Interest-bearing loans | 26 358 361 | 27 428 630 | |||
| Interest-bearing loans less shareholder’s loan | 23 416 333 | 24 480 330 | |||
| 12 months 2021 | 12 months 2020 | |
| Net profit margin, % (Net income / Net rental income) | 51.9% | 52.0% |
| ROA (Net income / Average fixed assets) | 4.10% | 4.44% |
| Debt-to-EBITDA (Interest-bearing loans less shareholder’s loan / Operating income) | 10.3 | 10.3 |
| LTV (Interest-bearing loans less shareholder’s loan / Investment property) | 74.8% | 79.2% |
| DSCR (Operating income / Loan principal and interest payments on interest-bearing loans) | 1.1 | 1.1 |
Management board and supervisory board
The management board of UPP Olaines OÜ has one member: Marko Tali, the chairman of the board. The management board of Olaines Logistics SIA has also one member: Siim Sild, chairman of the 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 of UPP Olaines OÜ. The member of board of Olaines Logistics SIA receives remuneration according to Latvian legislation.
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 | 4Q 2023 | 4Q 2020 | 12 months 2023 | 12 months 2020 |
| Net rental income | 4 | 613 708 | 657 849 | 2 478 285 | 2 637 007 |
| Other revenues | 0 | 0 | 544 | 0 | |
| Net rental income | 613 708 | 657 948 | 2 478 829 | 2 637 007 | |
| General and administrative expenses | (31 531) | (38 899) | (153 516) | (154 568) | |
| Other operating expenses | 0 | 0 | (49 715) | 0 | |
| Operating income | 582 177 | 618 950 | 2 275 598 | 2 482 439 | |
| Financial income / (cost) | (246 299) | (367 533) | (988 964) | (1 111 475) | |
| Profit before income tax | 335 878 | 251 417 | 1 286 634 | 1 370 964 | |
| Income tax | 0 | 0 | 0 | 0 | |
| Net income | 335 878 | 251 417 | 1 286 634 | 1 370 964 | |
| Total comprehensive income for the period | 335 878 | 251 417 | 1 286 634 | 1 370 964 |
Condensed consolidated interim statement of financial position
| (in EUR) | Note | 31.12.2021 | 31.12.2020 |
| Cash and cash equivalents | 722 947 | 676 373 | |
| Trade and ohter receivables | 280 124 | 171 124 | |
| Total current assets | 1 003 071 | 847 497 | |
| Investment property | 31 320 000 | 30 909 000 | |
| Total non-current assets | 31 320 000 | 30 909 000 | |
| TOTAL ASSETS | 32 323 071 | 31 756 497 | |
| Trade and ohter payables | 556 956 | 369 527 | |
| Financial derivatives | 162 078 | 363 979 | |
| Loans and borrowings | 5 | 23 416 333 | 1 064 004 |
| Total current liabilities | 24 135 367 | 1 797 510 | |
| Loans and borrowings | 5 | 2 942 028 | 26 364 633 |
| Total non-current liabilities | 2 942 028 | 26 364 633 | |
| TOTAL LIABILITIES | 27 077 395 | 28 251 136 | |
| Share capital | 2 500 | 2 500 | |
| Retained earnings | 5 243 176 | 3 591 861 | |
| TOTAL EQUITY | 5 245 676 | 3 594 361 | |
| TOTAL EQUITY AND LIABILITIES | 32 323 071 | 31 756 497 |
UNITED PARTNERS
Siim Sild
Managing Director
+372 5626 0107
Attachment
