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Estonia's UPP Olaines doubles FY net profit to EUR 1.4 mln

BC, Riga, 03.03.2020.Print version
The asset management company UPP Olaines saw its net profit almost double from 712,000 euros in 2018 to almost 1.4 mln euros in 2019, informed LETA.

Net profit in the final quarter of the year totaled 623,900 euros, marking a fourfold increase from 109,500 euros in the fourth quarter of 2018, UPP Olaines informed the stock exchange on Monday.

Net rental income totaled 2.59 mln euros in 2019, 6 % more than the year before. In the final quarter of the year net rental income was 15 % higher than in the same quarter in 2018, measuring 654,300 euros.

The increase in net operating revenue in the final quarter of the year was due to the accounting of the 2018 land tax in the fourth quarter, where the land tax for the whole financial year was accounted for the fourth quarter of 2018, leading to unproportionally high land tax expense for the period and reducing the net operating revenue compared to the fourth quarter of 2019. The annual increase in net operating revenue is due to indexation of rent and increased efficiency in operations.

Adjusted net operating income totaled 622,377 euros in the fourth quarter of 2019, marking an increase of 17% from 532,100 euros in the fourth quarter of 2018. Adjusted net operating income for the financial year 2019 was 2.5 mln euros, 10 % bigger than the figure of almost 2.3 mln euros posted for the financial year 2018.

After the reporting period a change took place in the group structure, where on Jan. 22, 2020 the subsidiaries SIA Olaines Logistics and SIA Olaines Logistics Parks were merged. The merger was planned and part of normal management of the business, referred to also in the note issue terms and conditions, where the target SIA Olaines Logistics Parks was merged into the acquirer SIA Olaines Logistics. The merger took somewhat longer compared to mergers in Estonia and Lithuania due to the peculiarities of the Latvian legislation. The merger will further increase the efficiency of the company’s operations and management.

As at Dec. 31, the company's total equity and liabilities stood at 31.7 mln euros and liabilities at 29.3 mln euros.

UPP Olaines is fully owned by United Partners Property OU, a 100% holding of United Partners Group OU.

United Partners (UP) is an independent Estonian investment bank established in 2003. The core business of United Partners is financial counseling of businesses, direct investment, asset management services and property development.

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