UPP Olaines OÜ has consolidated the unaudited financial results for




general informations

UPP Olaines OÃœ (hereinafter “the Company” and “the Group” when it refers to its subsidiaries) was created with the aim of financing, acquiring and managing the real estate investment of Parc Logistique Olaines: (buildings and land) located in “Å arlotes”, County of Olaines, Parish of Olaines, Latvia, cadastre number 8080 003 0029, registered in the compartment of the land register No. 5439 of the parish town of Olaine. The Company was created on 08.24.2017 and had no economic activity until 12.15.2017, when it acquired the cold store Olaines Logistics Park.

The management board is not aware of any trend, uncertainty, request, commitment or event that is reasonably likely to have a material effect on the Company’s outlook for the period subsequent to the reporting period of these financial statements outside of the during its regular business activities.

UPP Olaines OÜ operates on a going concern basis.

Financial commentary for the second quarter and nine months of 2021

Net operating income amounted to 626,923 euros in 3Q 2021 (670,298 euros in 3Q 2020) and 1,864,577 euros for the nine months of 2021 (1,979,158 euros for the 9 months of 2020). The operating profit amounted to 542,929 euros in 3Q 2021 (635,253 euros in 3Q 2020) and to 1,693,421 euros for the nine months of 2021 (1,863,48 euros for the nine months of 2020). The net result is 297,664 euros in 3Q 2021 (408,988 euros in 3Q 2020) and 950,756 euros for the nine months of 2021 (1,119,547 euros for the 9 months of 2020).

The decrease in net operating income for 9 months of 2021 is due to changes in rental contracts, which management also took into account in the commentary for Q1 2021. In Q3 2021, the Group carried out repairs at Olaine LC which had an additional effect on the 3Q and 9 months net operating income.

The Group paid a fine of 49,715 euros imposed by BÅ«vniecÄ«bas valsts kontroles birojs (Latvia’s National Building Control Office) which had a significant impact on the net result for Q3 and 9 months.

The Group received the fine because the Company’s subsidiary, SIA Olaines Logistics, did not send its 2020 energy report to the Bureau on time. In Latvia, companies that consume more than 500,000 kWh of energy for two consecutive years are considered to be large energy consumers and must make energy efficiency investments, or pay an energy efficiency fine calculated on the basis of the electricity consumed. For companies such as SIA Olaines Logistics, which do not consume electricity, but transfer (sell) purchased electricity to other customers, it is necessary to maintain a balance of purchased and sold kWh, and to pass on the annual balance at the Bureau before a due date. SIA Olaines Logistics did not transmit the required balance for 2020 on time due to changes in the Group’s asset management team at that time. Additionally, due to COVID-related travel restrictions, we were unable to access the physical mailbox of SIA Olaines Logistics, where notifications and reminders regarding the obligation to transmit the balance were sent by the Office. As a result, the Group became liable for the energy efficiency fee for all of the ~ 8,000 MWh of electricity consumed at Olaines LC by SIA Olaines Logistics customers. SIA Olaines Logistics has repeatedly appealed to the Bureau and also asked the Latvian Ministry of Economy to reduce the fine as it is completely disproportionate to the nature of the violation and the fact that SIA Olaines Logistics consumed 0 kWh of electricity. However, none of the appeals were considered by either institution as the appeal deadline had passed, leaving the fine in effect in its entirety.

In Q3 2021, the Group initiated investments to change all of Olaine LC’s lighting to LED lighting, including the lighting of outdoor premises.

The sole business activity of the company is to collect rental income, manage the Olaine property and repay its debts to lenders and investors. Liabilities include subordinated bonds with a fixed interest rate and the investment loan, the rate of which is also fixed with an interest rate swap contract. On the turnover side, the company receives stable triple net rents from reputable tenants, fixed by medium-term agreements but subject to indexation. Due to the economically fixed nature of the business, there must be some major event in the overall economy or in the business activities of the business for them to have a significant effect on the bottom line of the business.

Key financial performance indicators and 9-month situation 2021

(in euros) 3Q 2021 3Q 2020 9 months 2021 9 months 2020
Net operating income 626 923 670,298 1 864 577 1 979 158
BAII 542,929 635,253 1,693,421 1 863 489
Profit for the period 297,664 408 988 950 756 1,119,547
(in euros) 30.09.2021 30.09.2020
Investment property 31,320,000 30,909,000
Interest bearing loans 26 624 362 27 694 631
Interest-bearing loans minus shareholder loan 23 682 334 24 746 331
9 months 2021 9 months 2020
Net profit margin,% (Total comprehensive income / Net operating income) 50.1% 56.6%
ROA (Net profit / Average fixed assets) 4.05% 4.83%
LTV (Interest-bearing loans less shareholder loan / Investment property) 75.6% 80.1%
DSCR (Operating income / Payment of principal and interest on interest-bearing loans) 1.1 1.2

Management board and supervisory board

The UPP Olaines OÃœ’s board is made up of one member: Marko Tali, the chairman of the board. The management board of Olaines Logistics SIA also has one member: Siim Sild, chairman of the management board.

The UPP Olaines OÜ supervisory board is made up of three members: Mart Tooming, Tarmo Rooteman, Hallar Loogma.

No compensation or other benefits were awarded to members of the management board and supervisory board of UPP Olaines OÜ. The member of the board of directors of Olaines Logistics SIA is remunerated in accordance with Latvian legislation.

There are no employees in the company other than the members of the management board and the supervisory board.


Condensed interim consolidated statement of comprehensive income

(in euros) To note 3Q 2021 3Q 2020 9 months 2021 9 months 2020
Net rental income 4 626 923 670,298 1 865 121 1 979 158
Net rental income 626 923 670,298 1 865 121 1 979 158
General and administrative expenses (34,279) (35,045) (121,985) (115,669)
Other operating expenses (49,715) 0 (49,715) 0
Operating result 542,929 635,253 1,693,421 1 863 489
Financial products / (cost) (245,265) (232,265) (742 665) (743 942)
Profit before income tax 297,664 402,988 950 756 1,119,547
Income tax 0 0 0 0
Profit for the period 297,664 402,988 950 756 1,119,547
Total comprehensive income for the period 297,664 402,988 950 756 1,119,547

Summary consolidated interim balance sheet

(in euros) To note 30.09.2021 30.09.2020
Cash and cash equivalents 712,869 752,089
Customers and other receivables 231,037 317,024
Total current assets 943,906 1,069,113
Investment property 31,320,000 30,909,000
Total non-current assets 31,320,000 30,909,000
TOTAL ASSETS 32 263 906 31 978 113
Suppliers and other debts 505,591 383,036
Financial derivatives 224,155 407,502
Loans and borrowing 5 1,064,004 1,064,004
Total current liabilities 1 793 750 1 854 542
Loans and borrowing 5 25,560,358 26 630 627
Total non-current liabilities 25,560,358 26 630 627
TOTAL RESPONSIBILITIES 27 354 108 28 485 169
Share the capital 2,500 2,500
Retained earnings 4,907,298 3 490 444
EQUITY 4,909,798 3,492,944
EQUITY AND TOTAL LIABILITIES 32 263 906 31 978 113


Siim Sild

General manager

+372 5626 0107



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