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