Pro Kapital Council approved Consolidated Interim Report for II Quarter and 6 Months of 2025 (Unaudited)
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 Shaltini? 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 2024 2025 2024 2024
6M 6M Q2 Q2 12M
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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
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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
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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
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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
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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
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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
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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
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Total equity attributable to owners of the
Company 56 975 51 400 50 633
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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
2025 2024 2025 2024 2024
in thousands of euros 6M 6M Q2 Q2 12M
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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
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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
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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
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Profit/ loss before income tax 6 026 -3 038 4 216 -1 348 -4 030
Income tax 162 -2 82 8 155
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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
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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) EUR 0,11 -0,05 0,08 -0,02 -0,06
The full report can be found in the file attached.
Ann-Kristin Kuusik
CFO
+372 614 4920
[email protected]