MANAGEMENT REPORT
Real Estate Development
Tallinn
By the second quarter of 2025, construction of the final phase of the Kalaranna development (4 buildings, 146 units) reached an end with some landscaping and a few client modifications works remaining. As of the publication of this report, 76 sold apartments have been handed over to buyers, and the overall sales rate has reached 60.7%.
In Kristiine City, we are continuing the design and building permit process for four different projects submitted to the Tallinn City Planning Department:
- “Dunte” – still awaiting the issuance of the building permit.
- Sammu 2/4 / Sõjakooli 15 – building permit application was submitted in December 2024.
- Marsi 1 / Sõjakooli 13 – building permit application was submitted in February 2025.
- Sammu 3 / Sõjakooli 17 – we are in the design phase and preparing a new concept, alongside an application for a change of use to allow 95% residential and 5% commercial functions. The plan is to submit the projecting to the city within July 2025.
All the above listed projects will add ca 35.000 sqm of GBA with ca 350 units of predominantly residential function (95% residential/5% commercial) to our portfolio in a well-established neighbourhood in Kristiine City.
As of Q2 2025, construction of the White Building (91 residential units) in Uus-Kindrali project, located in Kristiine City at Talli Street 3 /Sammu Street 8, Tallinn, has progressed well. As of the date of this report, we have already begun the installation of final finishes (tiles, paintwork, etc). To date, the project has reached 62.4% sellout, with final completion expected in November–December 2025.
Earlier this year, we had also started the excavation and foundation works for another 7-story residential building with 90 units, located next to the White Building at Sammu Street 10 / Seebi Street 24a, Tallinn. With sales we are at 12.2% sellout. To date we have almost finished the underground works and will start erecting the structure above ground. The expected completion of this residential building is planned for Oct-Nov 2026.
Riga
Following the successful completion of sales in River Breeze Residence at the end of 2024, with all units sold, the Group initiated preparations for the next phase of development in Kliversala – the Blue Marine project (96 residential units). Throughout the first half of 2025, we have taken key steps toward launching this new stage. The engineering team is now nearly fully assembled, and construction preparation started in July 2025. At the same time, we have collected interest from potential buyers.
To support this next stage of development, two new subsidiaries were established in June 2025: SIA Pro Kapital Engineering, which will be responsible for construction project management activities in Latvia, and SIA BM Kliversala for the purpose of developing Blue Marine project.
In Vilnius
During Q2 we continued the construction of the final stage of Šaltinių Namai Attico with city villas and a commercial building. We are currently at almost 40% sellout in the villas and slightly above 10% in the commercial building while achieving record prices in Vilnius real estate market. Regarding construction we are on schedule to achieve substantial completion by the end of 2025.
Our latest investment on Naugarduko Street in Vilnius involves transforming a former school into a high-end residential complex. Located on a hill with breathtaking views of Vilnius’ Old Town, the development will feature approximately 50 luxury apartments. The building permit process is still ongoing, with approval expected in Q3 2025.
Hotel operations
Hotel performance in the second quarter was still slightly below budgeted expectations but overall, we are confident that the performance shortfall can be recovered by September-October. The second quarter result was expected to have some challenges due to the closure of the Thermal Baths for periodic maintenance, which very directly affected occupancy and tourists’ presence in our destination.
We are confident that the property will maintain the positive trends of performance shown in the past years.
Other operations
The Group holds a majority stake in Preatoni Nuda Proprietà (PNP) and its subsidiary Preatoni Intermediazioni Immobiliari (PII), which continue to strengthen their presence in the Italian real estate market, focusing on bare ownership transactions.
Despite the market slowdown in 2024, caused by rising interest rates, confidence in the real estate sector has been gradually recovering, with full market normalization expected by the end of 2025.
Conclusion
The first half of 2025 showed stabilisation across our geographical markets, despite continued bureaucratic delays and seasonal slowdowns in some areas of our operations. In Tallinn, we continued to make progress both in terms of construction milestones and in expanding our development pipeline within the promising Kristiine City area. Riga continued with the momentum in preparation of the Blue Marine project, where we are applying the successful in-house construction model used in Estonia. In Vilnius, we are concluding new sales with record pricing in our flagship project and laying the groundwork for a high-end transformation in Naugarduko Street.
Overall, the Group remains focused on disciplined execution, strategic development, and value creation. We are well positioned to capitalize on the improving macroeconomic sentiment and deliver strong results throughout the rest of the year.
Edoardo Preatoni
CEO
Key financials
The total revenue of the Group in first six months of 2025 was 28.5 million euros compared to 6.9 million euros in first six months of 2024. The total revenue of the second quarter was 16.1 million euros compared to 3.9 million euros in 2024.
The real estate sales revenues are recorded at the point of time when legal title is transferred to the buyer. Therefore, the revenues from sales of real estate depend on the construction cycle and the completion of the residential developments.
Revenue from the sale of real estate increased compared to the previous year, as we continued handing over completed apartments in the Kalaranna District, Tallinn, following the initial deliveries that began in December 2024. The lower revenue in the second quarter of 2024 reflects the development cycle, as construction was ongoing and only a limited number of remaining inventory units were available for sale in Riga and Vilnius.
The gross profit for the first six months of 2025 increased to 10.2 million euros compared to 2.4 million euros in the same period of 2024. The gross profit of the second quarter was 6.0 million euros compared to 1.5 million euros in 2024.
The operating result in the first six months was 7.5 million euros profit comparing to 0.9 million euros loss during the same period in 2024. The operating result of the second quarter was 5.0 million euros profit compared to 0.2 million euros loss in the second quarter of 2024.
The net result for the first six months of 2025 was 6.2 million euros profit, comparing to 3.0 million euros loss in the reference period. The net result of the second quarter was 4.3 million euros loss compared to 1.3 million euros loss in the same period of 2024.
Cash generated in operating activities during first six months of 2025 was 8.5 million euros comparing to 4.5 million euros used during the same period in 2024. Cash generated in operating activities during second quarter was 7.2 million euros compared to 2.8 million euros used in the second quarter of 2024.
Net assets per share were 1.01 euros as of 30 June 2025, compared to 0.93 euros a year earlier.
Key performance indicators
| 2025 6M |
2024 6M |
2025 Q2 |
2024 Q2 |
2024 12M |
|
| Revenue, th, EUR | 28 519 | 6 907 | 16 069 | 3 853 | 18 158 |
| Gross profit, th. EUR | 10 233 | 2 423 | 6 026 | 1 535 | 5 423 |
| Gross profit, % | 36% | 35% | 38% | 40% | 30% |
| Operating result, th. EUR | 7 517 | -860 | 4 975 | -201 | 123 |
| Operating result, % | 27% | -12% | 32% | -5% | 1% |
| Net result, th. EUR | 6 188 | -3 040 | 4 298 | -1 340 | -3 875 |
| Net result, % | 22% | -44% | 27% | -35% | -21% |
| 30.06.2025 | 30.06.2024 | 31.12.2024 | |
| Total Assets, th. EUR | 115 759 | 109 695 | 118 758 |
| Total Liabilities, th. EUR | 58 350 | 57 207 | 67 537 |
| Total Equity, th. EUR | 57 409 | 52 488 | 51 221 |
| Debt/ Equity * | 1,02 | 1,09 | 1,32 |
| Return on Assets, % ** | 5,5% | -2,9% | -3,4% |
| Return on Equity, % *** | 11,3% | -5,7% | -7,0% |
| Net asset value per share, EUR **** | 1,01 | 0,93 | 0,89 |
*debt / equity = total debt / total equity
**return on assets = net profit/loss / total average assets
***return on equity = net profit/loss / total average equity
****net asset value per share = net equity / number of shares
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated interim statement of financial position
| in thousands of euros | 30.06.2025 | 30.06.2024 | 31.12.2024 | |
| ASSETS | ||||
| Current assets | ||||
| Cash | 3 572 | 8 576 | 4 344 | |
| Current receivables | 1 495 | 1 481 | 822 | |
| Prepaid expenses | 0 | 359 | 422 | |
| Inventories | 57 030 | 44 550 | 56 951 | |
| Total current assets | 62 097 | 54 966 | 62 539 | |
| Non-current assets | ||||
| Non-current receivables | 314 | 20 | 317 | |
| Property, plant and equipment | 7 463 | 7 655 | 7 595 | |
| Right-of-use-assets | 384 | 495 | 513 | |
| Investment property | 42 505 | 40 405 | 44 210 | |
| Goodwill | 863 | 204 | 863 | |
| Intangible assets | 2 133 | 3 615 | 2 721 | |
| Total non-current assets | 53 662 | 52 394 | 56 219 | |
| Assets held for sale | 0 | 2 335 | 0 | |
| Total assets helt for sale | 0 | 2 335 | 0 | |
| TOTAL ASSETS | 115 759 | 109 695 | 118 758 | |
| LIABILITIES AND EQUITY | ||||
| Current liabilities | ||||
| Current debt |
7 284 | 1 749 | 21 893 | |
| Customer advances | 7 525 | 7 083 | 9 618 | |
| Trade and other payables | 6 010 | 6 235 | 5 600 | |
| Tax liabilities | 471 | 175 | 833 | |
| Short-term provisions | 16 | 8 | 24 | |
| Total current liabilities | 21 306 | 15 250 | 37 968 | |
| Non-current liabilities | ||||
| Non-current debt | 34 966 | 40 676 | 27 350 | |
| Other long term liabilities | 6 | 2 | 6 | |
| Deferred income tax liabilities | 1 869 | 1 130 | 2 031 | |
| Long-term provisions | 203 | 149 | 182 | |
| Total non-current liabilities | 37 044 | 41 957 | 29 569 | |
| TOTAL LIABILITIES | 58 350 | 57 207 | 67 537 | |
| Equity | ||||
| Share capital in nominal value | 11 338 | 11 338 | 11 338 | |
| Share premium | 5 661 | 5 661 | 5 661 | |
| Statutory reserve | 1 134 | 1 134 | 1 134 | |
| Revaluation reserve | 1 977 | 2 092 | 1 977 | |
| Retained earnings | 36 865 | 31 175 | 30 523 | |
| Total equity attributable to owners of the Company | 56 975 | 51 400 | 50 633 | |
| Non-controlling interest | 434 | 1 088 | 588 | |
| TOTAL EQUITY | 57 409 | 52 488 | 51 221 | |
| TOTAL LIABILITIES AND EQUITY | 115 759 | 109 695 | 118 758 | |
Consolidated interim statements of comprehensive income
| in thousands of euros | 2025 6M |
2024 6M |
2025 Q2 |
2024 Q2 |
2024 12M |
| CONTINUING OPERATIONS | |||||
| Operating income | |||||
| Revenue | 28 519 | 6 907 | 16 069 | 3 853 | 18 158 |
| Cost of goods sold | -18 286 | -4 484 | -10 043 | -2 318 | -12 735 |
| Gross profit | 10 233 | 2 423 | 6 026 | 1 535 | 5 423 |
| Marketing expenses | -626 | -485 | -340 | -263 | -1 136 |
| Administrative expenses | -2 752 | -2 790 | -1 426 | -1 465 | -5 293 |
| Other operating income | 770 | 19 | 758 | 17 | 1 164 |
| Other operating expenses | -108 | -27 | -43 | -25 | -35 |
| Operating profit | 7 517 | -860 | 4 975 | -201 | 123 |
| Finance income | 23 | 67 | 10 | 25 | 123 |
| Finance cost | -1 514 | -2 245 | -769 | -1 172 | -4 276 |
| Profit/ loss before income tax | 6 026 | -3 038 | 4 216 | -1 348 | -4 030 |
| Income tax | 162 | -2 | 82 | 8 | 155 |
| Profit/ loss for the period | 6 188 | -3 040 | 4 298 | -1 340 | -3 875 |
| Attributable to: | |||||
| Equity holders of the parent | 6 342 | -3 023 | 4 347 | -1 323 | -3 675 |
| Non-controlling interest | -154 | -17 | -49 | -17 | -200 |
| Total other comprehensive income | |||||
| Net change in asset revaluation reserve | 0 | 0 | 0 | 0 | -115 |
| Total comprehensive income for the period | 6 188 | -3 040 | 4 298 | -1 340 | -3 990 |
| Attributable to: | |||||
| Equity holders of the parent |
6 342 | -3 023 | 4 347 | -1 323 | -3 790 |
| Non-controlling interest | -154 | -17 | -49 | -17 | -200 |
| Earnings per share (Basic) € | 0,11 | -0,05 | 0,08 | -0,02 | -0,06 |
The full report can be found in the file attached.
