The recovery from the market lows that started in the second half of last year continued in the first quarter of 2025. During the quarter, we signed a total of 25 contracts under the law of obligation (sales contracts; 2024 Q1: 16). The biggest contributions came from the sale of homes under construction in the Iseära phase II project (both terraced houses and apartments) as well as from the Regati development project. Among completed homes, the main contributions to sales came from the Uus-Meremaa and Luuslangi projects.

The weekly sales ratio, which reflects the number of homes going out of supply through either sales contracts or paid reservations, remained at a similar level compared to the previous quarter. Over the period, the average was close to 1.9%, and even exceeded 2.5% during March. The long-term average is considered to be 1.5–2.0%.

Contracts under the law of obligations concluded during the period, where homes are not delivered under real right contracts within the same period, are treated as presales. At the beginning of the quarter, the estimated monetary value of presales was 35.6 million euros, all relating to projects scheduled for completion during the last three quarters of 2025. During the quarter, we concluded new contracts with a revenue value of 7.0 million euros, of which presales accounted for 5.1 million euros. Together with earlier presales, we enter the following quarters of 2025 with 104 contracts under the law of obligations for homes in buildings scheduled for completion during the year, with a total revenue value of 40.7 million euros.

There were no new construction completions during the first quarter of 2025, and during the quarter we handed over a total of only 5 new homes and 1 commercial space under real right contracts in previously completed developments (2024 Q4: 24; 2024 Q1: 12). Of these, 1 home and 1 commercial space were handed over in phase II of the Uus-Meremaa development, 2 homes in phase I of the Luuslangi development, 1 home in phase II of the Iseära development, and 1 home in the Magdaleena development. In the same order, the projects also had an impact on the sales revenue for the first quarter, which amounted to EUR 1,931 thousand (2024 Q4: EUR 8,164 thousand; 2024 Q1: EUR 3,498 thousand), and the net loss for the quarter was EUR 705 thousand (2024 Q4: EUR +78 thousand; 2024 Q1: EUR -150 thousand). The loss for the first quarter was primarily due to the low sales volume and lower-than-average profitability of the homes sold.

The balance of cash and cash equivalents increased by EUR 4,011 thousand during the quarter to EUR 9,916 thousand, and total assets grew by EUR 10,512 thousand during the quarter, reaching EUR 88,810 thousand at the end of the period. The main contributors to the increase were the green bond issue carried out at the end of the quarter and the increase in inventories of the Regati and Iseära projects under construction.

Total borrowings increased by EUR 10,427 thousand during the quarter to EUR 57,684 thousand. During the quarter, a total of EUR 6,808 thousand in bank loans were disbursed to finance the construction of projects, and we raised additional debt capital of EUR 6,200 thousand through a public offering of green bonds. The balance of construction loans increased by EUR 3,535 thousand in the Regati project and by EUR 1,713 thousand in the Iseära project. The balance of construction loans will increase also in the next quarter at a similar rate to the current quarter, primarily due to the financing of the construction of the Regati project but will decrease very significantly by the end of the year, following the completion of the construction and the delivery of the homes.

At the end of the quarter, we redeemed EUR 2,000 thousand bonds previously issued to finance the Juhkentali 48 project and extended the maturity date for the bonds issued for the Peakorter project development (previously 31.12.2025). Current borrowings decreased by EUR 4,367 thousand during the quarter to EUR 2,039 thousand. The decrease in the current borrowings was also influenced by the final repayments of the Uus-Meremaa project investor loan and the Luuslangi project bank loan.

Consolidated statement of financial position

Consolidated statement of comprehensive income

The customer satisfaction score for the last 12 months, collected at different stages of the customer journey, increased to 9.5 out of 10 by the end of the year (2024 Q4: 9.2; 2024 Q1: 7.5).

Key events in development projects

In January, Liven AS issued a guarantee in favour of the Tallinn City Property Department in the amount of EUR 1,249 thousand, effective until 29 January 2032, in connection with the Kadaka tee 88 development project, in the planning phase, and the agreement between Liven Kodu 10 OÜ and the City of Tallinn for the coverage of the costs related to the construction works at Tallinn Meelespea kindergarten.

During the quarter, the final investor loan payments were made in the Uus-Meremaa project, and at the end of the quarter, the last home in the development remained to be sold. Likewise, at the end of the quarter, only the last home in the Magdalena development remained to be sold.

In March, Liven Kodu 22 OÜ and Coop Pank AS entered into a long-term loan agreement for 1,560 thousand euros to partially refinance the previous financing of the Olemuse project. Liven AS also provided a guarantee to Coop Pank AS for the loan amount. The presale of the first homes in the project started also in March.

Public offering of the second series of green bonds

In March 2025, a public offering of series II green bonds was made under the previous bond programme of Liven AS, in which Liven offered up to 4,000 unsecured bonds with a nominal value of 1,000 euros, a redemption date of 19 March 2029 and a fixed interest rate of 9.0% per annum, payable quarterly. The 871 investors who participated in the offering subscribed for a total of 8,301 bonds, resulting in an oversubscription of 2.1 times. As a result of the oversubscription, Liven’s management board decided to increase the size of the offering to 6,200 bonds, i.e. to 6,200 thousand euros.

Events after the reporting period

In April, Liven AS entered into a cooperation agreement with Oma Grupp OÜ for the realisation of a development project on the property located at Erika 6a and 6b in Põhja-Tallinn. The residential quarter, designed by PIN Arhitektid OÜ, will comprise approximately 4,900 m² of sellable area and 68 homes, including two six-storey residential buildings and a nine-storey building that combines a reconstructed water tower with a new structure built on top of it. Sales of the first homes are scheduled to begin in the summer of 2025, with construction set to start at the end of the same year. The completion of construction works is planned for 2027. The project will be implemented by a 50/50 joint venture established by Liven AS and Oma Grupp OÜ, and the general contractor for the construction is Oma Ehitaja AS.

In April, the Tallinn City Council decided to adopt the detailed plan for the Peakotrer project at Erika 12 .

In April, we started pre-sales of homes in the Virmalise development project in the Uus Maailm district in central Tallinn. The Virmalise project will consist of 28 homes, with construction scheduled to start in the third quarter of 2025 and end in 2026.

The management board of Liven AS has convened an annual general meeting of shareholders, which will be held on 14 May 2025 at 10.00 a.m. at the Liven salon office at Telliskivi 60/5.The management board of Liven has proposed to pay a dividend of EUR 180 thousand to the shareholders in accordance with the dividend policy and to appoint KPMG Baltics OÜ as auditor for the years 2025-2026. Information and documents related to the shareholders’ annual general meeting are available on the Liven AGM website https://liven.ee/investor/uldkoosolek.

Significant developments in the economic environment in the period under review

The downward trend in the 6-month Euribor (Euribor), observed throughout the previous year, continued in the first quarter of 2025. By the end of the quarter, the Euribor rate had fallen to 2.39% (31.12.2024: 2.63%).

As inflation in the euro area has moved closer to the European Central Bank’s long-term target, and to support economic growth in the European Union amid the negative impact of U.S.-imposed tariffs, the Governing Council of the European Central Bank continued to ease monetary policy. In the first four months of 2025, it cut key interest rates three times, by a total of 75 basis points. According to economic analysts, interest rate cuts are expected to continue during the year, which should lead to a further decline in the Euribor.

In Estonia, the annual growth rate of consumer prices in Q1 2025 was faster than in the euro area, with prices rising by 4.4% compared to the same period in the previous year (Q4 2024: 3.9%). According to forecasts by Eesti Pank, inflation in 2025 is expected to reach 6.6%, driven by tax increases and continued wage growth.

According to the latest data from Statistics Estonia, the estimated annual increase in average gross wages in the first quarter—between 8.0% and 8.5%—outpaced price growth. Nevertheless, consumer confidence remained persistently low. Consumers tend to view the purchase of durable goods as more favourable over the next 12 months than at present, which has led to a continued sentiment of caution and postponement of purchasing decisions. Based on the latest data from the Institute of Economic Research, the consumer confidence indicator in the first quarter remains at a level similar to the end of the previous year (Q1 2025 average: -37; 12-month 2024 average: -33; 2023 average: -30).

As typical for the first quarter, the number of apartment transactions in Tallinn decreased according to purchase-sale statistics from the Land Board, falling by 15.8% compared to the previous quarter (Q1 2025: 2,127 transactions; Q4 2024: 2,464 transactions). Still, there were still signs of increased activity among home buyers, as the number of transactions in Q1 2025 showed a 18.3% increase compared to the same period a year earlier and was comparable to the result of Q3 2024. However, transaction activity has mainly increased in the secondary market, while sales in new developments have remained relatively subdued.

Compared to the fourth quarter of 2024, offer prices for new developments increased moderately by 2.6% in the first quarter of 2025. Based on data collected from the market, the number of transactions decreased by 26% compared to the previous quarter (Q1 2025: 414 transactions; Q4 2024: 559 transactions), remaining at a level similar to that of Q1 2024 (368 transactions).

Throughout the first quarter, the stock of unsold ready-to-move-in apartments showed a slight downward trend but remained relatively high, reaching an estimated 1,040 apartments by the end of the quarter (Q4 2024: 1,110; Q1 2024: 1,020). This means that homebuyers continue to have a wide range of options, and market competition remains elevated.

Outlook for the future

Similar to Q1 2025, we expect continued recovery in the economic environment and demand for new residential real estate in the coming months. However, market activity remains largely dependent on external factors, particularly interest rates, geopolitics, the tax environment, and consumer confidence. Expectations for 2025 suggest a continued decline in interest rates and growth in real wages, supporting improved affordability. Still, higher income tax rates and the VAT increase from July, combined with persistently high inflation, are expected to slow the pace of improvement. If demand rises, we are ready to bring new supply to the market quickly.

We are still waiting for the drawn-out processes for adoption of the detailed spatial plans for Kadaka tee 88, Juhkentali 48 and Erika 12 to finalised in 2025. As there were no new completions in Q1 and we were only able to hand over previously completed homes, also with below average profitability, the financial results for Q1 were in line with expectations. In 2025, we can still deliver up to 194 residential and commercial units, with a maximum potential revenue of up to 75 million euros.

If sales remain at the same level as in the last nine months, we continue to expect revenue to reach around 55 million euros in 2025 and assume that this will be sufficient to achieve the 20% return on equity target. No buildings under construction will be completed in the first quarter and most of the planned revenue and profit will be generated in the second half of the year.

During the second quarter of the year, we plan to hand over homes in the apartment buildings in the Iseära project, and in the second half of the year in the terraced houses in the Iseära project and in Regati project. Hence, most of the planned revenue and profit for 2025 will be generated in the second half of the year. For the projects to be completed during 2025 we had 104 apartments with a revenue value of 41 million euros sold under contracts under the law of obligations by the end of the first quarter (31.12.2024: 86 and 36 million euros)

With construction completions and home deliveries, we expect the balance of borrowings to fall to a lower level by the end of the year than at the beginning of this year.

Real estate development is characterised by a long time lag in results and higher marketing costs in the periods before sales volumes start to grow. In addition to the ongoing constructions, we are working hard on pre-sales and construction starts of new projects and phases that will have an impact on 2026 results. Including the Erika 6a and 6b projects added in April.

Liven’s development portfolio has sufficient volume for the next 4–5 years. However, we continue to seek new sites and actively negotiate acquisitions or joint developments with landowners to expand the portfolio.

Liven-2025-Q1-interim-report