UPP & CO Kauno 53 OÜ
Interim Report
April – June 2018
Main Events of 2Q 2018
Maintenance works on UAB Rimi Lithuania new premises have been completed
The premises where UAB CAT Cargo Logistics used to operate have been handed over for regular operations to Rimi from the first quarter of 2018. The premises needed some light maintenance works which were completed in February. Additionally to the works that were performed, a faulty ventilation was detected as the weather got hotter. The reason was a burnt through plug in a fuse box that was replaced by the end of June and from there on out no further problems have arisen.
Regular technical maintenance of the premises
During the second quarter the main focus have been on the out-doors issues which were discovered during the regular technical evaluation of the property. An additional expertise has been made for the bigger and technically more complex works of (i) asphalt repair next to the loading docks and in-doors; and (ii) concrete flooring on the sections that are most intensively used. Negotiations with multiple contractors have started. This process is expected to continue throughout the third quarter. Additionally a small scale roofing works were performed in order to avoid any potential leaks during the approaching autumn season.
Vacancy, payment behaviour and indexation
As of 30th of June 2018 there is no vacancy in the building and all rental and utilities payments are received in time from all tenants.
Quarterly interest payment
Interest for UPP & CO Kauno 53 OÜ bonds was paid on July 17th, 2018. Interest was paid to the investors who held the notes as of July 10th, 2018.
Trends in the warehouse space in Lithuania during the first half of 2018
During the first half of 2018 the logistics market was continuously supported by lively industrial production growth and positive export dynamics. Currently eight new industrial/logistics properties are under construction in Vilnius, which will add around 65 000 sq. m. of new space, representing roughly 10% of the total gross leasable area in Vilnius. Despite the increased supply, market vacancy has remained on the 2% level. This would implicate that there is enough demand on the market to sink the additional warehouse space supply. We expect the rental rates to remain stable and any meaningful growth in near future would result from indexation of rent rates. In conclusion, the situation in Lithuanian warehouse space has been stable over the past years and this trend is expected to continue in the second half of 2018. (Source: Ober-Haus Market Report Baltic states 2018)
Financial Performance (consolidated)
2Q 2018 – Net profit EUR 118 055
Net Sales and Net Profit
- Net Sales amounted to EUR 309 129 in 2nd quarter
- Net Operating Income amounted to EUR 305 155 in 2nd quarter
Expenses
- Operating expenses amounted to EUR 9 135 in 2nd quarter
- Interest expense on loans and bonds issued amounted to EUR 144 966
Interest-bearing liabilities
- Bank loan repaid in 2nd quarter EUR 115 000, loan outstanding EUR 8 663 335
- Issued bonds outstanding EUR 4 700 000
DSCR
- Issuer consolidated 1.2
Statement of the Management Board
The financial and other additional information published in the Interim Report April – June 2018 is true and complete. Consolidated financial statements give a true and fair view of the actual financial position, results of operations and cash flows of the Company. According to the Terms and Conditions of the Note Issue, the Company confirms that during the interim report period there has been non-occurrence of an Extraordinary Early Redemption Event and according to Clause 3.4.12 of the Terms the Collateral is properly insured at all times.
Consolidated financial statements in the report for the period April – June 2018 are not audited.
Hallar Loogma
Member of the Management Board
Tallinn, 27.07.2018
Income Statement
(the Company, “Promalita” UAB and consolidated)
| PROFIT/LOSS STATEMENT | K53 | Promalita | Cons. | YTD | Cons. |
| in euros | 100% | 2Q2018 | 1Q2018 | ||
| Sales revenues | 0 | 309 129 | 309 129 | 618 475 | 309 346 |
| Other operating income | 0 | 2 921 | 2 921 | 2 921 | 0 |
| Total revenues from operating activities | 0 | 312 050 | 312 050 | 621 396 | 309 346 |
| Cost of goods sold | 0 | 0 | 0 | 0 | 0 |
| Administrative expenses | -1 994 | -2 795 | -4 789 | -12 944 | -8 155 |
| Personnel expenses | 0 | -438 | -438 | -876 | -438 |
| Depreciation of fixed assets | 0 | -3 908 | -3 908 | -8 421 | -4 513 |
| Total operating expenses | -1 994 | -7 141 | -9 135 | -22 241 | -13 106 |
| Profit (loss) from operating activities | -1 994 | 304 909 | 302 915 | 599 155 | 296 240 |
| Financial revenues (costs) | 5 120 | -150 086 | -144 966 | -288 635 | -143 669 |
| Net profit (loss) before taxation | 3 126 | 154 823 | 157 949 | 310 520 | 152 571 |
| Corporate income tax | 0 | -39 894 | -39 894 | -79 442 | -39 548 |
| Net profit (loss) for the period | 3 126 | 114 929 | 118 055 | 231 078 | 113 023 |
Balance Sheets
(the Company, “Promalita” UAB and consolidated)
| BALANCE SHEET | K53 | Promalita | Cons. | Cons. |
| in euros | 100% | 30.06.2018 | 31.03.2018 | |
| ASSETS | ||||
| Current assets | ||||
| Cash and bank | 38 809 | 61 939 | 100 748 | 68 495 |
| Accounts receivable and prepayments | 700 | 14 097 | 14 797 | 10 731 |
| Stock | 0 | 0 | 0 | 0 |
| Total current assets | 39 509 | 76 036 | 115 545 | 79 226 |
| Non-current assets | ||||
| Long-term financial investments | 3 200 | 0 | 0 | 0 |
| Log-term loans | 5 488 700 | 0 | 0 | 0 |
| Real Estate investments | 0 | 15 350 000 | 15 350 000 | 15 350 000 |
| Fixed assets | 0 | 29 888 | 29 888 | 33 796 |
| Goodwill | 0 | 1 280 818 | 1 280 818 | 1 280 818 |
| Total non-current assets | 5 491 900 | 16 660 706 | 16 660 706 | 16 664 614 |
| TOTAL ASSETS | 5 531 409 | 16 736 742 | 16 776 251 | 16 743 840 |
| LIABILITIES AND EQUITY | ||||
| Current liabilities | ||||
| Short-term loans | 0 | 230 000 | 230 000 | 345 000 |
| Accounts payables and other settlements | 77 288 | 38 524 | 115 812 | 118 950 |
| Total current liabilties | 77 288 | 268 524 | 345 812 | 463 950 |
| Non-current liabilities | ||||
| Long-term bank loan | 0 | 8 433 333 | 8 433 333 | 8 433 333 |
| Long-term bonds | 4 700 000 | 0 | 4 700 000 | 4 700 000 |
| Long-term shareholder's loan | 736 350 | 5 488 700 | 736 350 | 743 750 |
| Long-term provisions | 0 | 2 091 191 | 2 091 191 | 2 051 297 |
| Total non-current liabilities | 5 436 350 | 16 013 224 | 15 960 874 | 15 928 380 |
| TOTAL LIABILITIES | 5 513 638 | 16 281 748 | 16 306 686 | 16 392 330 |
| EQUITY | ||||
| Share capital | 2 500 | 2 500 | 2 500 | 2 500 |
| Retained earning | 15 271 | 452 494 | 467 065 | 349 010 |
| Retained earning from previous periods | 9 527 | 224 660 | 235 987 | 235 987 |
| Retained earnings from current period | 5 744 | 227 834 | 231 078 | 113 023 |
| TOTAL EQUITY | 17 771 | 454 994 | 469 565 | 351 510 |
| TOTAL LIABILITIES AND EQUITY | 5 531 409 | 16 736 742 | 16 776 251 | 16 743 840 |
Cash Flow Statement
(the Company, “Promalita” UAB and consolidated)
| CASH FLOW STATEMENT | K53 | Promalita | Cons. | Cons. |
| in euros | 100% | 2Q2018 | 1Q2018 | |
| Profit from operating activities | -1 994 | 304 909 | 302 915 | 296 240 |
| Amortization | 0 | 3 908 | 3 908 | 4 513 |
| Corrections | 0 | 0 | 0 | 0 |
| Change in operating receivables and prepayments | 200 | -4 266 | -4 066 | -1 887 |
| Change in reserves | 0 | 0 | 0 | 0 |
| Change in operating liabilities and advances | -825 | -2 311 | -3 136 | -9 775 |
| Cash flows from operations | -2 619 | 302 240 | 299 621 | 289 091 |
| Received interest | 110 995 | 0 | 1 | 0 |
| Cash flows from investments | 110 995 | 0 | 1 | 0 |
| Loans received and bonds issued | 52 600 | 0 | 52 600 | 22 000 |
| Repayments of loans and redeemed bonds | -60 000 | -115 000 | -175 000 | -115 000 |
| Paid interest | -105 876 | -150 087 | -144 969 | -167 341 |
| Cash flows from financing | -113 276 | -265 087 | -267 369 | -260 341 |
| Total cash flows | -4 900 | 37 153 | 32 253 | 28 750 |
| Cash at the beginning of period | 43 709 | 24 786 | 68 495 | 39 745 |
| Changes in cash | -4 900 | 37 153 | 32 253 | 28 750 |
| Cash at the end of period | 38 809 | 61 939 | 100 748 | 68 495 |
UPP & CO Kauno 53 OÜ
Pärnu mnt. 141
11314 Tallinn, Estonia
Phone +372 6616 450
E-mail: property@unitedpartners.ee
United Partners, Director
Siim Sild
Phone: +372 5626 0107
e-mail: siim.sild@unitedpartners.ee
