Pro Kapital Council approved Consolidated Interim Report for I Quarter and 3 Months of 2025 (Unaudited)
MANAGEMENT REPORT
Real Estate Development
Tallinn
During the first quarter of 2025, construction of the final phase of the
Kalaranna development (4 buildings, 146 units) reached substantial completion,
although some minor finishing works continued into the second quarter. As of the
publication of this report, 68 sold apartments have been handed over to buyers,
and the overall sales rate has reached nearly 60%.
In Kristiine City, we are actively engaged in the design and building permit
application process for four different projects submitted to the Tallinn City
Planning Department:
- "Dunte" - 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.
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 Q1 2025, construction of the White Building (91 residential units) in the
Uus-Kindrali project, located in Kristiine City at Talli Street 3 / Sammu Street
8, Tallinn, has progressed well. Work on internal partition walls is underway,
and finishing works have begun on the lower floors. The project has reached a
57% sellout, with final completion expected in November-December 2025.
At the end of Q1, we also started 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 the initial launch of
presales, approximately 11% of units were sold.
Riga
Following the successful completion of sales in River Breeze Residence at the
end of 2024, with all units sold and only two parking spaces remaining, the
Group initiated preparations for the next phase of development in Kliversala -
the Blue Marine project (101 residential units). During Q1 2025, we took key
steps toward launching this new stage. A new construction project manager was
hired, and a tender was held among contractors. Based on the outcome, management
decided to adopt the in-house construction management model already used in
Estonia. Recruitment for the engineering team is ongoing, and groundbreaking is
planned for July 2025. At the same time, we have started collecting interest
from potential buyers.
Vilnius
During Q1 we continued the construction of the final stage of Shaltini? Namai
Attico with city villas and a commercial building. We are currently at 35%
sellout in the villas and 10% in the commercial building while achieving record
prices in Vilnius RE 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. An architectural competition was carried out
for the purpose, and the winning studio has been in the process of designing and
carrying out the building permit process with the city. Subject to the issuance
of the permit, we plan to start renovation works at the end of 2025.
Hotel operations
Hotel performance in the first quarter was slightly below last year's level,
primarily due to a general decline in individual demand, particularly in
February. However, we expect to fully recover this shortfall in the coming
period, supported by increasing demand from the MICE segment and a visible
rebound in individual travel in the second quarter. 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.
As in previous years, PII's business activity started slowly in Q1, but since
April we have seen a clear increase in momentum, culminating in a historic sales
record during the month. A significant brokerage deal is also expected to close
in May, which could result in exceeding last year's revenue already by the end
of Q2 2025.
As for PNP, the company did not engage in any proprietary property trading
during the first quarter, however we are currently evaluating new acquisition
opportunities to resume trading activities.
Conclusion
The first quarter of 2025 has marked a solid start across our geographies,
despite continued bureaucratic delays and seasonal slowdowns in some areas of
our operations. In Tallinn, we made tangible progress both in terms of
construction milestones and in expanding our development pipeline within the
promising Kristiine City area. Riga has seen renewed momentum with the
preparation of the Blue Marine project, where we are applying the successful in-
house construction model used in Estonia. In Vilnius, we are achieving record
pricing in our flagship project and laying the groundwork for a high-end
transformation in Naugarduko Street.
Outside the Baltic region, Preatoni Nuda Proprietà and PII are entering 2025
with renewed strength. After a quiet Q1 in Italy, April marked a turning point
with historic sales figures, and May promises to exceed last year's total
revenue thanks to high-profile deals.
Although hotel operations were slightly impacted in February, the outlook for
the coming quarters remains positive, supported by rising MICE and individual
demand.
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 the first quarter of 2025 was 12.5 million
euros compared to 3.1 million euros in the first quarter of 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 first 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 three months of 2025 increased to 4.2 million
euros compared to 0.9 million euros in the same period of 2024.
The operating result in the first quarter of 2025 was 2.5 million euros profit
comparing to 0.7 million euros loss during the same period in 2024.
The net result for the first three months of 2025 was 1.9 million euros profit,
comparing to 1.7 million euros loss in the reference period.
Cash generated in operating activities during first three months of 2025 was
1.3 million euros comparing to 1.7 million euros used during the same period in
2024.
Net assets per share on 31 March 2025 totalled to 0.94 euros compared to 0.95
euros on 31 March 2024.?
Key performance indicators
2025 3M 2024 3M 2024 12M
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Revenue, th, EUR 12 450 3 054 18 158
Gross profit, th. EUR 4 207 888 5 423
Gross profit, % 34% 29% 30%
Operating result, th. EUR 2 542 -659 123
Operating result, % 20% -22% 1%
Net result, th. EUR 1 890 -1 700 -3 875
Net result, % 15% -56% -21%
31.03.2025 31.03.2024 31.12.2024
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Total Assets, th. EUR 121 074 105 855 118 758
Total Liabilities, th. EUR 67 963 52 027 67 537
Total Equity, th. EUR 53 111 53 828 51 221
Debt/ Equity * 1,28 0,97 1,32
Return on Assets, % ** 1,7% -1,6% -3,4%
Return on Equity, % *** 3,5% -3,1% -7,0%
Net asset value per share, EUR **** 0,94 0,95 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 31.03.2025 31.03.2024 31.12.2024
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ASSETS
Current assets
Cash 3 949 8 897 4 344
Current receivables 3 578 1 688 822
Prepaid expenses 0 434 422
Inventories 57 634 39 980 56 951
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Total current assets 65 161 50 999 62 539
Non-current assets
Non-current receivables 315 22 317
Property, plant and equipment 7 520 7 712 7 595
Right-of-use-assets 449 551 513
Investment property 44 335 40 378 44 210
Goodwill 863 204 863
Intangible assets 2 431 3 654 2 721
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Total non-current assets 55 913 52 521 56 219
Assets held for sale 0 2 335 0
Total assets helt for sale 0 2 335 0
TOTAL ASSETS 121 074 105 855 118 758
LIABILITIES AND EQUITY
Current liabilities
Current debt 17 354 1 733 21 893
Customer advances 8 616 5 602 9 618
Trade and other payables 7 202 6 303 5 600
Tax liabilities 1 171 208 833
Short-term provisions 5 8 24
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Total current liabilities 34 348 13 854 37 968
Non-current liabilities
Non-current debt 31 466 36 903 27 350
Other long term liabilities 6 2 6
Deferred income tax liabilities 1 950 1 140 2 031
Long-term provisions 193 128 182
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Total non-current liabilities 33 615 38 173 29 569
TOTAL LIABILITIES 67 963 52 027 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 32 518 32 498 30 523
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Total equity attributable to owners of the
Company 52 628 52 723 50 633
Non-controlling interest 483 1 105 588
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TOTAL EQUITY 53 111 53 828 51 221
TOTAL LIABILITIES AND EQUITY 121 074 105 855 118 758
Consolidated interim statements of comprehensive income
in thousands of euros 2025 3M 2024 3M 2024 12M
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CONTINUING OPERATIONS
Operating income
Revenue 12 450 3 054 18 158
Cost of goods sold -8 243 -2 166 -12 735
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Gross profit 4 207 888 5 423
Marketing expenses -286 -222 -1 136
Administrative expenses -1 326 -1 325 -5 293
Other operating income 12 2 1 164
Other operating expenses -65 -2 -35
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Operating profit 2 542 -659 123
Finance income 13 42 123
Finance cost -745 -1 073 -4 276
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Profit/ loss before income tax 1 810 -1 690 -4 030
Income tax 80 -10 155
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Profit/ loss for the period 1 890 -1 700 -3 875
Attributable to:
Equity holders of the parent 1 995 -1 700 -3 675
Non-controlling interest -105 0 -200
Total other comprehensive income
Net change in asset revaluation reserve 0 0 -115
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Total comprehensive income for the period 1 890 -1 700 -3 990
Attributable to:
Equity holders of the parent 1 995 -1 700 -3 790
Non-controlling interest -105 0 -200
Earnings per share (Basic) EUR 0,04 -0,03 -0,06
The full report can be found in the file attached.
Ann-Kristin Kuusik
CFO
+372 614 4920
[email protected]