News

Starting from Q4 2024, the United Partners team will provide regular quarterly reports to offer a detailed insight into our investment strategies and portfolio development. Our investments are divided into three main areas: residential real estate, commercial real estate, and private equity investments.

In this report, we present the results of Q4 2024 as well as the full-year performance.

Residential real estate

The year 2024, including the fourth quarter, was a productive and successful period for United Partners Property OÜ’s residential business segment.

A residential development project comprising 27 apartments in Tallinn was successfully completed, with all units sold.

Currently, the key focus is on the preparatory phase of three new projects, with active work underway on zoning and planning. These developments will collectively add 36 new residential units.

Commercial real estate

Trade and logistics

In 2024, the execution of the Baltic trade and logistics strategy continued. During the year, a lease agreement was signed with a new tenant for the Taevavärava Logistics Center, and the capital structure was optimized to reduce the weighted average cost of capital.

By the end of the year, the total trade and logistics assets exceeded €75 million, encompassing five logistics centers with a combined area of 75 000 m². The net rental income for the 12-month period amounted to approximately €5.5 million, while EBITDA reached around €5 million.

The key objectives for the upcoming quarters include increasing portfolio value through expansions and strengthening client relationships. One of the development projects involves the construction of a 6,000 m² building on the Taevavärava tee 2 property.

Additionally, the design and planning process for a new office building in Tallinn is ongoing, with a total of 12 floors and a gross area of 5,400 m².

Social infrastructure

In 2024, the implementation of the social infrastructure strategy continued. Frontida expanded its real estate investment portfolio by acquiring the Kunda Südamekodu in Kunda and the Paide Südamekodu in Paide from Südamekodud AS.

Following these transactions, the total portfolio value reached €5 million, comprising three elderly care homes with a total area of 5,400 m². The portfolio’s annual rental income stands at approximately €420,000. Swedbank financed all three transactions.

In the coming quarters, further portfolio expansion is planned as part of the ongoing strategic execution.

Private equity investments

Equity United

As of December 31, 2023, the private equity fund Equity United PE1 was fully invested, and throughout 2024, including Q4, active work continued with eight portfolio companies.

In the renewable energy segment, our companies PE Holding and 9 Sparnai generated approximately 54.8 GWh of electricity during the financial year, with wind energy accounting for 34.6 GWh and solar energy for 20.2 GWh.

The food industry faced a challenging year in 2024 due to rapidly rising input costs and low consumer confidence driven by an uncertain economic environment. Despite these hurdles, our portfolio companies adapted swiftly. Tactical Solution shifted its focus to national tenders and military supply contracts while launching a new B2B business line, Chef Urban. Additionally, Saaremaa Delifood successfully increased sales volumes of curd snacks and cup-packaged products, strengthening its focus on export markets.

Solar energy solutions provider Smartecon expanded successfully into the Lithuanian and Latvian markets, securing several strategically important tenders in 2024, with projects set for delivery in 2025. The company has also begun designing, constructing, and supplying hybrid and stand-alone energy storage solutions for developers, industrial, and manufacturing companies. To date, more than 20 MWh of hybrid storage plants have been built.

Q4 and the full year of 2024 were also successful for Ceranos Invest OÜ, a company specializing in boat and kayak manufacturing. In Q4, a partnership agreement was signed with renowned engine manufacturer Mercury Marine, which will exclusively supply engines for boats sold under Ceranos Invest’s SeaStorm brand.

Throughout 2024, our portfolio companies focused on refining the value propositions of their core product and services, analyzing market conditions and customer feedback. As a result, Billo, a leading short-form video advertising platform, strengthened its competitive position on TikTok and Meta platforms, achieving 33% revenue growth over the year and reaching cash-positive bottom line for the first time. Meanwhile, Stay Larsen, which offers fully furnished accommodation solutions in Tallinn, reached an impressive 95% occupancy rate by the end of Q4 2024, successfully meeting all its budgeted targets for the year.

Nordic Vehicles Group

The results for 2024, including Q4, are in line with expectations and reflect the broader economic environment in the Baltic region. Despite a slight decline in machine sales following a record-breaking 2023, we achieved modest growth in higher-margin after-sales services and rental income. Annual revenue reached €131 million, with EBITDA at €4.1 million. A total of 2,475 machines were delivered to customers, and by year-end, the rental portfolio was valued at €16.5 million.

In addition to core business operations, we streamlined the NVG Group’s structure, optimized debt terms in collaboration with banking partners, and launched a new digital presence.

In 2025, our primary focus will be on expanding the rental portfolio both geographically and across business segments, including passenger vehicles and heavy machinery.