UPP & CO Kauno 53 OÜ

Interim Report

October – December 2018

 

Main Events of 4Q 2018

Regular technical maintenance of the premises

Promalita UAB team has created a list of the findings from technical audit which was conducted by Cityservice in the 3rd quarter of 2018. The list includes the maintenance works and regulates the Lessor's and Tenants' obligations in commencing the maintenance works. The list has been sent to the tenants in December, 2018. A discussion between the tenants and Promalita UAB team will be held in February, 2019 where the parties will discuss further the procedure and timeline regarding commencing the maintenance works. Majority of the deficiencies discovered are caused by a small impact with a truck or a forklift and are easily repairable. In general the premises are in good technical condition and we are continuing regular maintenance works to preserve the premises in good condition.

Vacancy, payment behaviour and indexation

As of 31 th of December 2018, there is no vacancy in the building and all rental and utilities payments are received in time from all tenants. In January, rent indexation will be implemented on all tenants.

Quarterly interest payment

Interest for UPP & CO Kauno 53 OÜ bonds was paid on January 17 th , 2019. Interest was paid to the investors who held the notes as of January 14 th , 2019.

“Investor Desk” service

Silver Kalmus is a new person responsible for the “Investor Desk” service in the Group company United Partners Advisory OÜ. “Investor Desk” was established in 2017 with the aim to further improve investor relations. Silver can be contacted on all matters regarding UPP & CO Kauno 53 OÜ, including if the investor wishes to buy or sell their Notes. Following are his contacts:

Silver Kalmus Investorsuhted +372 56206 450

silver.kalmus@unitedpartners.ee

Financial Performance (consolidated)

4Q 2018 – Net profit EUR 124 228

Net Sales and Net Profit

  • Net Sales amounted to EUR 314 561 in 4 th quarter
  • Net Operating Income amounted to EUR 307 891 in 4 th quarter

Expenses

  • Operating expenses amounted to EUR 6 670 in 4 th quarter
  • Interest expense on loans and bonds issued amounted to EUR 143 019

Interest-bearing liabilities

  • Bank loan repaid in 4 th quarter EUR 115 000 , loan outstanding EUR 8 433 333
  • 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 October – December 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 October – December 2018 are not audited.

Marko Tali

Member of the Management Board

Tallinn, 30.01.2019

Income Statement

( the Company, “Promalita” UAB and consolidated)

PROFIT/LOSS STATEMENT K53 Promalita Cons. YTD Cons.
in euros   100% 4Q2018   3Q2018
           
Sales revenues 0 309,130 309,130 1,236,734 309,129
Other operating income 0 5,431 5,431 12,147 3,795
Total revenues from operating activities 0 314,561 314,561 1,248,881 312,924
           
Administrative expenses -2,014 -695 -2,709 -19,119 -3,466
Personnel expenses 0 -79 -79 -1,036 -81
Depreciation of fixed assets 0 -3,882 -3,882 -16,198 -3,895
Total operating expenses -2,014 -4,656 -6,670 -36,353 -7,442
           
Profit (loss) from operating activities -2,014 309,905 307,891 1,212,528 305,482
           
Financial revenues (costs) 5,378 -148,397 -143,019 -573,728 -142,074
           
Net profit (loss) before taxation 3,364 161,508 164,872 638,800 163,408
Corporate income tax 0 -40,644 -40,644 -160,584 -40,498
Net profit (loss) of the period 3,364 120,864 124,228 478,216 122,910

Balance Sheets

( the Company, “Promalita” UAB and consolidated)

BALANCE SHEET K53 Promalita Cons. Cons.
in euros   100% 31.12.2018 30.09.2018
ASSETS        
Current assets        
Cash and bank 81,271 78,413 159,684 56,741
Accounts receivable and prepayments 36,905 49,740 49,746 117,776
Stock 0 0 0 0
Total current assets 118,176 128,153 209,430 174,517
Non-current assets        
Long-term financial investments 3,200 0 0 0
Log-term loans 5,396,350 0 0 0
Real Estate investments 0 15,350,000 15,350,000 15,350,000
Fixed assets 0 22,113 22,113 25,995
Goodwill 0 1,280,818 1,280,818 1,280,818
Total non-current assets 5,399,550 16,652,931 16,652,931 16,656,813
TOTAL ASSETS 5,517,726 16,781,084 16,862,361 16,831,330
         
LIABILITIES AND EQUITY        
Current liabilities        
Short-term loans 0 460,000 460,000 115,000
Accounts payables and other settlements 80,644 84,643 128,143 122,483
Total current liabilities 80,644 544,643 588,143 237,483
Non-current liabilities        
Long-term bank loan 0 7,973,333 7,973,333 8,433,333
Long-term bonds 4,700,000 0 4,700,000 4,700,000
Long-term shareholder's loan 711,850 5,396,350 711,850 736,350
Long-term provisions 0 2,172,332 2,172,332 2,131,689
Total non-current liabilities 5,411,850 15,542,015 15,557,515 16,001,372
TOTAL LIABILITIES 5,492,494 16,086,658 16,145,658 16,238,855
         
EQUITY        
Share capital 2,500 2,500 2,500 2,500
Retained earning 22,732 691,926 714,203 589,975
Retained earning from previous periods 9,527 224,660 235,987 235,987
Retained earnings from current period 13,205 467,266 4,798,216 353,988
TOTAL EQUITY 25,232 694,426 716,703 592,475
TOTAL LIABILITIES AND EQUITY 5,517,726 16,781,084 16,862,361 16,831,330

Cash Flow Statement

( the Company, “Promalita” UAB and consolidated)

CASH FLOW STATEMENT K53 Promalita Cons. Cons.
in euros   100% 4Q2018 3Q2018
Profit from operating activities -2,014 309,905 307,891 305,482
Amortization 0 3,882 3,882 3,895
Corrections 0 0 0 0
Change in operating receivables and prepayments 300 67,731 68,031 -103,081
Change in reserves 0 0 0 0
Change in operating liabilities and advances 0 4,871 4,871 4,606
Cash flows from operations -1,714 386,389 384,675 210,902
         
Repayment of loans issued 64,500 0 0 0
Received interest 108,319 0 2 0
Cash flows from investments 172,819 0 2 0
         
Loans received and bonds issued 60,000 0 60,000 2,000
Repayments of loans and redeemed bonds -84,500 -179,500 -199,500 -117,000
Paid interest -103,344 -147,207 -142,234 -139,909
Cash flows from financing -127,844 -326,707 -281,734 -254,909
         
Total cash flows 43,261 59,682 102,943 -44,007
         
Cash at the beginning of period 38,010 18,731 56,741 100,748
Changes in cash 43,261 59,682 102,943 -44,007
Cash at the end of period 81,271 78,413 159,684 56,741

UPP & CO Kauno 53 OÜ

Pärnu mnt. 141

11314 Tallinn, Estonia

Phone +372 6616 450

E-mail: property@unitedpartners.ee

www.unitedpartners.ee

         United Partners, Director          Siim Sild          Phone: +372 5626 0107          e-mail: siim.sild@unitedpartners.ee