CLOSED-END REAL ESTATE INVESTMENT FUND LORDS LB BALTIC FUND I. ACTIVITY REPORT 2013 I quarter

Transcription

1 CLOSEDEND REAL ESTATE INVESTMENT FUND LORDS LB BALTIC FUND I ACTIVITY REPORT 2013 I quarter

2 I. GENERAL INFORMATION 1. The name of the Collective Investment Undertaking, legal form, the date of Commission s approval of the establishment documents of the Collective Investment Undertaking: 2. Reporting period: Closedend real estate investment fund LORDS LB BALTIC FUND I, Decision no. 2K226 dated June 26, January 01, 2013 March 31, Data of the Management Company: 3.1. The title and the code of the company: 3.2. Visiting address: Name: LORDS LB ASSET MANAGEMENT, UAB Registry code: Jogailos str. 4, Vilnius, Lithuania 3.3. Telephone no., , website: 3.4. License No.: Telephone no.: info@lordslb.lt Website: License no. VĮK016, issued on the December 23, Name, surname and position of the Manager of the Collective Investment Undertaking: Marius Žemaitis, Fund Manager 4. The title of Depository, registry code, address, telephone and fax numbers: Name: AB SEB bankas Registry code: Address: Gedimino av. 12, Vilnius, Lithuania Telephone no.: Number and value of net assets and investment units: II. NUMBER AND VALUE OF NET ASSETS AND INVESTMENT UNITS At the start of the period At the end of the period One year ago Two years ago EUR LTL EUR LTL EUR LTL EUR LTL Amount of investment units 16'706'059, '706'059, '706'059, '706'059, '298'928, '298'928, '240'052, '240'052,4464 Net asset value 24'506'013,01 84'614'361,72 24'626'369,73 85'029'929,40 23'137'422,76 79'888'893,31 13'262'158,06 45'791'579,35 Investment unit value 1,4669 5,0649 1,4741 5,0898 1,3375 4,6181 1,1799 4,0740 2

3 6. Number and value of the distributed and retired investment units during reporting period: Amount of investment units Market value EUR LTL Distributed 0,0000 0,00 0,00 Redeemed 0,0000 0,00 0,00 Difference 0, ,00 0,00 III. COSTS OF THE COLLECTIVE INVESTMENT UNDERTAKING 7. Types, amounts, percentages, the overall cost ratio of deductions from the assets of the Collective Investment Undertaking. Amount of expenses Calculated this period % of average Expenses NAV of this Maximum This period EUR LTL period ADMINISTRATION COSTS: Management fee 91'057,25 314'402,47 0,37% Fixed fee 1,50% 0,37% 91'057,25 314'402,47 0,37% Success fee 0,00 0,00 0,00% Depository services 0,20% 0,04% 9'105,72 31'440,24 0,04% Property valuation 0,00 0,00 0,00% Audit 0,10% 0,00% 744,68 2'571,24 0,00% Accounting services 4'205,28 14'520,00 0,02% Legal services 0,00 0,00 0,00% Other administrative costs 118,36 408,67 0,00% General cost and weight 10,00% 105'231,30 363'342,62 0,43% COSTS RELATED TO TRANSACTIONS: Legal services 0,00 0,00 0,00% Property valuation 0,00 0,00 0,00% State fees and charges 0,00 0,00 0,00% Financial brokers 1,00% 0,00% 0,00 0,00 0,00% Asset servicing and maintenance 30,00% 0,00% 0,00 0,00 0,00% Loans 15,00% 0,00% 0,00 0,00 0,00% Property development 10,00% 0,00% 0,00 0,00 0,00% Other operating costs 0,00 0,00 0,00% Total cost 0,00 0,00 8. The example, illustrating impact of deductions to the investor s final return on investments. The example presents the calculation of how much could be deducted (in Litas) from the contributions of the participant of the Collective Investment Undertaking at the current level of deductions and what the amount it could recover after 1, 3, 5, 10 years if invested LTL , and the annual rates of return 5 percents: After 1 year After 3 years After 5 years After 10 years Expenses incurred 552,61 1'657,83 2'763,05 5'526,10 Accrued amount excluding expenses 10'500,00 11'500,00 12'500,00 15'000,00 Accrued amount including expenses 9'947,39 9'842,17 9'736,95 9'473,90 3

4 IV. INFORMATION ABOUT THE PORTFOLIO OF THE COLLECTIVE INVESTMENT UNDERTAKING 9. The portfolio of the Collective Investment Undertaking at the end of the reporting period: The name of credit institution / issuer State CNCY ISIN code Term / Maturity Yield, % Purchase value, LTL Market value, EUR Market value, LTL Share of NAV, % CASH: AB SEB bankas LT LTL 2'044,55 7'059,42 0,0% Sampo Pank EE EUR 754,24 2'604,24 0,0% Total: 2'798,79 9'663,66 0,0% DEPOSITS: BONDS: UAB PP6 LT EUR LT30233PP ,00% 19'266'458,27 6'250'325,69 21'581'124,54 25,4% UAB "Lords LB capital partners" LT EUR LT O ,00% 8'362'681,60 2'778'237,85 9'592'699,64 11,3% Total: 27'629'139,87 9'028'563,54 31'173'824,18 36,7% EQUITIES: Focus Kinnisvara osa EE EUR EE '596'290,00 9'880'404,88 34'115'061,97 40,1% UAB "Lords LB capital partners" LT LTL LT U 10'000,00 59'839,47 206'613,73 0,2% UAB LPVP Client1 LT LTL LT U 16'478'800,00 5'940'396,47 20'511'000,94 24,1% UAB PP6 LT LTL LT U 41'480'520,10 0,29 1,00 0,0% Total: 80'565'610,10 15'880'641,11 54'832'677,64 64,5% TOTAL: 24'912'003,44 86'016'165,48 101,2% 10. Description of investment instruments in which funds of the Collective Investment Undertaking were invested: The objective of the Fund is to secure longterm growth of ROI to investors of the Fund, taking advantage of favorable situation in the real estate market. The Fund is invested into commercial real estate in Lithuania, Latvia and Estonia, which generates rental income. 11. Distribution of investments according to investment strategy criteria: Investment Distribution At the start of the period At the end of the period Market value Share of Market value EUR LTL NAV, % EUR LTL Share of NAV, % BY ASSET CLASS: 24'685'914,28 85'235'524,84 100,73% 24'912'003,44 86'016'165,48 101,16% Cash 1'373,04 4'740,82 0,01% 2'798,79 9'663,66 0,01% Deposits 0,00 0,00 0,00% 0,00 0,00 0,00% Money market instruments 0,00 0,00 0,00% 0,00 0,00 0,00% Nonequity securities 8'703'883,62 30'052'769,37 35,52% 9'028'563,54 31'173'824,18 36,66% Equity securities 15'980'657,63 55'178'014,65 65,21% 15'880'641,11 54'832'677,64 64,49% Other instruments 0,00 0,00 0,00% 0,00 0,00 0,00% Real estate by type: 0,00 0,00 0,00% 0,00 0,00 0,00% Highquality assets 0,00 0,00 0,00% 0,00 0,00 0,00% Development projects 0,00 0,00 0,00% 0,00 0,00 0,00% Distressed assets 0,00 0,00 0,00% 0,00 0,00 0,00% Real estate by sector: 0,00 0,00 0,00% 0,00 0,00 0,00% Office centers 0,00 0,00 0,00% 0,00 0,00 0,00% Shopping centers 0,00 0,00 0,00% 0,00 0,00 0,00% Logistics centers 0,00 0,00 0,00% 0,00 0,00 0,00% 4

5 Real estate by geography: 0,00 0,00 0,00% 0,00 0,00 0,00% Lithuania 0,00 0,00 0,00% 0,00 0,00 0,00% Latvia 0,00 0,00 0,00% 0,00 0,00 0,00% Estonia 0,00 0,00 0,00% 0,00 0,00 0,00% BY CURRENCY: 24'685'914,28 85'235'524,84 100,73% 24'912'003,44 86'016'165,48 101,16% EUR 18'583'901,27 64'166'494,31 75,83% 18'909'722,66 65'291'490,39 76,79% LTL 6'102'013,01 21'069'030,53 24,90% 6'002'280,78 20'724'675,09 24,37% LVL 0,00 0,00 0,00% 0,00 0,00 0,00% EEK 0,00 0,00 0,00% 0,00 0,00 0,00% 12. Transactions for derivative financial instruments and total value of obligations arising from derivative financial instrument transactions by the end of the reporting cycle. No derivative transactions by March 31, Comparative index and its brief description: V. RETURN ON INVESTMENTS AND RISK RATES OF THE COLLECTIVE INVESTMENT UNDERTAKING Comparative index is not applied to the Collective Investment Undertaking 14. Change in value of the investment unit at the same period, rates of annual net investment return of portfolio investment instruments for the last ten years of the Collective Investment Undertaking s activity: Current 1 year ago 2 years ago 10 years ago Change in value of investment unit 0,0249 0,5441 0,5357 0,0000 Annual gross return on investments 13,83% 15,61% 17,28% 0,00% Annual net return on investments 12,37% 14,11% 15,73% 0,00% Standard deviation of change in value of investment unit 1,06% 18,28% 18,88% 0,00% Period 15. Change in value of the average investment unit at the same period, deviation of average net return on investments during the last three, five, ten years: Over the last 3 years ago 5 years ago 10 years ago Since the start Change in value of investment unit 1,6370 Average gross return on investments 13,83% Average net return on investments 12,37% Standard deviation of change in value of investment unit 57,96% 16. The minimum and maximum fixed value of investment unit: Over the current period Over the last period Date Value Date Value EUR LTL EUR LTL Minimum fixed value of investment unit ,4693 5, ,2116 4,1835 Maximum fixed value of investment unit ,4741 5, ,3375 4, Other rates revealing the risk of portfolio of the investment units, their explanations and method of calculation: 5

6 VI. FINANCIAL STATEMENTS OF THE COLLECTIVE INVESTMENT UNDERTAKING 18. Financial statements of the Collective Investment Undertaking, were prepared according to the laws and the legal requirements of the Republic of Lithuania: The balances set out in a comparative table: Current 1 year ago EUR LTL EUR LTL ASSETS: 25'054'094,29 86'506'776,77 24'825'923,51 85'718'948,69 Cash and cash equivalents 2'798,79 9'663,66 1'373,04 4'740,82 Deposits 0,00 0,00 0,00 0,00 Investments: 24'909'204,65 86'006'501,82 24'684'541,25 85'230'784,02 Government and Central Bank securities 0,00 0,00 0,00 0,00 Bonds 9'028'563,54 31'173'824,18 8'703'883,62 30'052'769,37 Equities 15'880'641,11 54'832'677,64 15'980'657,63 55'178'014,65 Funds 0,00 0,00 0,00 0,00 Real estate 0,00 0,00 0,00 0,00 Other investments 0,00 0,00 0,00 0,00 Receivables: 142'090,85 490'611,29 140'009,22 483'423,85 Receivable amounts from investment sales 0,00 0,00 0,00 0,00 Other receivables 142'090,85 490'611,29 140'009,22 483'423,85 LIABILITIES AND NET ASSETS: 25'054'094,29 86'506'776,77 24'825'923,51 85'718'948,69 Liabilities: 427'724,56 1'476'847,37 319'910,50 1'104'586,97 Liabilities for investments 0,00 0,00 0,00 0,00 Amounts to Management Company and Depository 152'923,34 528'013,72 92'591,79 319'700,92 Other amounts and liabilities 274'801,22 948'833,65 227'318,71 784'886,05 Net assets: 24'626'369,73 85'029'929,40 24'506'013,01 84'614'361, Financial statements of the set asset changes of the last 3 years, set out in a comparative table: Current 1 year ago 2 years ago EUR LTL EUR LTL EUR LTL NET ASSETS AT THE START OF THE PERIOD 24'506'013,01 84'614'361,72 16'595'828,13 57'302'075,35 9'188'180,33 31'724'949,06 INCREASE: 326'761,54 1'128'242,26 9'236'485,76 31'891'738,02 7'702'219,91 26'594'224,92 Distributed fund units 0,00 0,00 6'335'302,00 21'874'530,73 4'799'999,00 16'573'436,56 Interest received 326'761,54 1'128'242,25 1'145'301,48 3'954'496,95 318'913,68 1'101'145,16 Operating income 0,00 0,00 0,00 0,00 0,00 0,00 Realized profit from investments 0,00 0,00 0,00 0,00 329'643,56 1'138'193,28 Increase of investment value 0,00 0,00 1'755'518,87 6'061'455,55 2'253'542,98 7'781'033,20 Increase of asset value due to FX 0,00 0,00 0,00 0,00 0,00 0,00 Other income 0,00 0,01 363,41 1'254,79 120,69 416,72 DECREASE: 206'404,83 712'674,58 1'326'300,87 4'579'451,65 294'572,12 1'017'098,63 Redeemed fund units 0,00 0,00 900'000,01 3'107'520,04 0,00 0,00 Dividends 0,00 0,00 0,00 0,00 0,00 0,00 Interest 0,00 0,00 0,00 0,00 0,00 0,00 Management expenses 91'057,25 314'402,47 331'779,36 1'145'567,77 201'227,70 694'799,01 Realized loss from investments 0,00 0,00 0,00 0,00 0,00 0,00 Decrease in value of investments 100'016,51 345'337,01 0,00 0,00 0,00 0,00 Decrease of asset value due to FX 0,00 0,00 0,00 0,00 0,00 0,00 Other expenditure 15'331,06 52'935,10 94'521,50 326'363,84 93'344,42 322'299,62 Period 6

7 NET ASSETS AT THE END OF THE PERIOD 24'626'369,73 85'029'929,40 24'506'013,01 84'614'361,72 16'595'828,13 57'302'075,35 ACCOUNTING OF UNIT VALUE 1,4741 5,0898 1,4669 5,0649 1,3164 4,5453 ACCOUNTING AMOUNT OF UNITS 16'706'059,07 16'706'059,07 16'706'059,07 16'706'059,07 12'606'937,45 12'606'937, Information about the operating income and costs from investment activity of Collective Investment Undertaking during the reporting period: EUR LTL INCOME 226'745,03 782'905,25 Interest income 326'761,54 1'128'242,25 Realized profit (loss) from investments into: 0,00 0,00 Equities 0,00 0,00 Bonds 0,00 0,00 Money market instruments 0,00 0,00 Derivative financial instruments 0,00 0,00 Funds 0,00 0,00 Real estate 0,00 0,00 Other investment instruments 0,00 0,00 Unrealized profit (loss) from: 100'016,51 345'337,01 Equities 100'016,51 345'337,01 Bonds 0,00 0,00 Money market instruments 0,00 0,00 Derivative financial instruments 0,00 0,00 Funds 0,00 0,00 Real estate 0,00 0,00 Other investment instruments 0,00 0,00 Other income: 0,00 0,01 Rental income 0,00 0,00 Profit from foreign currency exchange 0,00 0,01 Other 0,00 0,00 EXPENSES 106'388,31 367'337,57 Operating expenses: 105'231,30 363'342,62 Management expenses 91'057,25 314'402,47 Depository expenses 9'105,72 31'440,24 Payments to brokers 0,00 0,00 Audit expenses 744,68 2'571,24 Other payments and expenditure 4'323,64 14'928,67 Other expenses: 1'157,02 3'994,95 Interest expense 1'157,02 3'994,95 Expenses related to managed real estate 0,00 0,00 Loss from foreign currency exchange 0,00 0,00 Other 0,00 0,00 Net income 120'356,72 415'567,68 Payments (dividends) to the owners of fund units 0,00 0,00 Reinvested income 0,00 0, Information about profit and (or) loss suffered during the financial year from the sale of each real estate object: 7

8 21. Information about the real estate agencies, whose services are used by the Management Company while managing the assets of Collective Investment Undertaking: CATELLA CORPORATE FINANCE RESOLUTION VALUATIONS COLLIERS INTERNATIONAL 22. Values of real estate of every investment portfolio of the Collective Investment Undertaking that are assessed by the latest real estate agents. Office building Saltoniškių 2, Vilnius: Valuation of UAB Catella Corporate Finance : EUR Valuation of UAB Resolution Valuations : EUR Office building METRO PLAZA, Tallinn: Valuation of UAB Catella Corporate Finance : EUR Valuation of UAB Resolution Valuations : EUR Prisma, Grostonas 1, Riga: Valuation of Colliers International: EUR Valuation of UAB Resolution Valuations : EUR Prisma, Pramonės 6, Kaunas: Valuation of Colliers International: EUR Valuation of UAB Resolution Valuations : EUR VII. OTHER INFORMATION 23. Other important information about the financial status of the Collective Investment Undertaking, factors and circumstances that have been affecting the Collective Investment Undertaking's assets or liabilities. 24. Additional explanations, comments, pictorial, graphic material and other important information about the Collective Investment Undertaking s activity that had an influence on the Undertaking s changes of activity and results. VIII. INFORMATION ABOUT DIVIDENDS 25. Information on the charged and (or) paid dividends, the period that the dividends have been paid, the dates of payment of the dividends on a per unit of investment size and other important information: IX. INFORMATION ABOUT THE BORROWED OR LOAN FUNDS OF THE COLLECTIVE INVESTMENT UNDERTAKING 26. The Collective Investment Undertaking s borrowings at the end of the reporting period: No Amount Currency Loan date Repayment term Interest Borrowing purpose Creditor % of NAV 1 60'000,00 EUR ,00% Focus Kinnisvara OÜ 0,24% 2 145'000,00 EUR ,00% Focus Kinnisvara OÜ 0,59% 3 55'000,00 EUR ,00% Focus Kinnisvara OÜ 0,22% Total: 260'000,00 1,05% 8

9 27. The Collective Investment Undertaking s loans at the end of the reporting period: No Amount Currency Lending date Repayment term Interest Loan purpose Debitor % of NAV 0,00 0,00% 0,00 0,00% Total: 0,00 0,00% IX. PERSONS IN CHARGE 28. The Consultants, whose services were taken in preparing the Report, their names (the names of legal entities) and addresses, the titles and numbers of business licenses: The Consultant services were not used. 29. The names, surnames, positions of the persons in charge of preparing the Report: Marius Žemaitis, Fund Manager 30. The information presented in this Report is true and there are no suppressed facts, which could exert a dominant influence on the values of the rates. 31. The persons in charge for the information presented in the Report: The Managing company s persons, employees and the Managing Director responsible for the Report: Managing Director: Domas Kačinskas Telephone no.: info@lordslb.com Fund Manager: Marius Žemaitis Telephone no.: info@lordslb.com The Chief Accountant who has presented the information of financial status of the Collective Investment Undertaking: Chief Accountant: Eladijus Kirijanovas The name of the company: MFINANCE, UAB Telephone no.: