Liven AS - Consolidated unaudited interim report for the III quarter and first 9 months of 2025
A webinar on the presentation of the results (in Estonian only) will take place
on 30 October at 13:00 (EET), more information
(https://view.news.eu.nasdaq.com/view?id=1396059&lang=en).
In the third quarter of 2025, the market remained active. During the quarter,
several previously made reservations were converted into contracts under the law
of obligations (sales contracts), particularly in development projects with
construction scheduled for completion in 2026. A total of 60 sales contracts
were signed during the quarter (Q2 2025: 31; Q3 2024: 32). In the first nine
months of 2025, a total of 116 sales contracts have been signed, which exceeds
the result of the same period last year by 22% (2024: 95). The largest
contribution to new contracts signed during the quarter came from sales in the
Olemuse project and in the new terraced houses of the Iseära development
project.
The quarter's sales revenue was most strongly impacted by the completion of
construction and handover of homes in the final terraced houses of the Iseära
project's second phase. Sales of previously completed homes also took place
mainly in the Iseära project. Additionally, the last home in the Uus-Meremaa
development project was sold, marking the full realization of the project.
The weekly sales ratio, which reflects the number of homes going out of supply
through either sales contracts or paid reservations, was lower in the third
quarter than in the previous quarters of 2025 but remained within the long-term
average range. The lower level compared to previous quarters reflects both
seasonal fluctuation and the typical high interest in newly launched projects
seen in the previous quarter.
Sales contracts signed during the period that are not transferred under a real
right contract within the same period are recognized as presales. At the
beginning of the quarter, the estimated value of previously recognized presales
was EUR 41.1 million (EUR 35.6 million at the beginning of 2025), of which EUR
38.2 million related to projects scheduled for completion in 2025. During the
quarter, we signed new contracts totaling EUR 20 million in sales revenue, of
which EUR 18 million were recognized as presales. This includes contracts for
buildings scheduled for completion in 2026. We enter the fourth quarter of 2025
with 86 sales contracts in projects completing in 2025, amounting to EUR 39.0
million in sales revenue.
In Q3 of 2025, the final terraced houses of the Iseära project's II phase were
completed, and 11 homes were delivered to customers during the quarter. At least
13 more homes are planned for handover in the fourth quarter. In addition, we
delivered 3 previously completed homes in the Iseära development and the last
home in the Uus-Meremaa development. In total, we handed over 15 units during
the period (Q2 2025: 35; Q3 2024: 27).
The sales revenue for the third quarter was EUR 5 080 thousand (Q2 2025: EUR
7 388 thousand; Q3 2024: EUR 7 057 thousand) and the net profit for the quarter
was EUR 132 thousand (Q2 2025: EUR 974 thousand; Q3 2024: EUR 342 thousand).
During the first nine months, we delivered a total of 56 new homes (2024: 68),
generated sales revenue of EUR 14 399 thousand (2024: EUR 19 052 thousand) and a
net profit of EUR 400 thousand (2024: EUR -1 470 thousand).
The balance of cash and cash equivalents decreased by EUR 3 948 thousand during
the quarter to EUR 5 626 thousand. Total assets increased by EUR 5 034 thousand
during the quarter to EUR 100 183 thousand at the end of the period. The change
in the cash balance was mainly affected by the investment made in the 50/50
joint venture, construction in the Regati and Wohngarten projects, and the
partial repayment of the development loan for the Iseära project. The increase
in assets was mainly due to the construction of the Regati project.
New construction loans of EUR 5 474 thousand were drawn during the quarter (for
the Regati project) but including repayments of construction loans for the
Iseära project, the net increase in construction loans was EUR 3 305 thousand.
Other loan commitments were reduced by EUR 383 thousand. Total borrowings
increased by EUR 3 021 thousand to EUR 62 561 thousand. Next quarter, the total
loan balance will decrease significantly due to construction completions and
home handovers.
Consolidated statement of financial position
(in thousands of euros) 30.09.2025 31.12.2024 30.09.2024
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Current assets
Cash and cash equivalents 5 626 5 905 4 807
Trade and other receivables 1 332 1 270 81
Prepayments 1 643 385 715
Inventories 86 706 67 902 65 138
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Total current assets 95 306 75 462 70 741
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Non-current assets
Prepayments 44 44 44
Trade and other receivables 1 484 0 0
Investment property 1 960 1 350 1 064
Property, plant and equipment 318 423 432
Intangible assets 456 401 386
Right-of-use assets 614 618 437
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Total non-current assets 4 877 2 836 2 363
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TOTAL ASSETS 100 183 78 298 73 104
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Current liabilities
Borrowings 2 784 6 405 9 738
Trade and other payables 17 021 11 234 8 838
Provisions 35 99 528
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Total current liabilities 19 840 17 739 19 104
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Non-current liabilities
Borrowings 59 777 40 851 34 642
Trade and other payables 1 868 1 398 1 032
Provisions 127 72 54
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Total non-current liabilities 61 772 42 322 35 728
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Total liabilities 81 612 60 061 54 832
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Equity
Share capital 1 200 1 200 1 190
Share premium 9 581 9 562 9 540
Share option reserve 323 317 321
Own (treasury) shares -6 -9 0
Statutory capital reserve 120 118 118
Retained earnings (prior periods) 6 953 6 491 6 468
Profit/Loss for the year 399 558 635
Total equity attributable to owners of
the parent 18 571 18 237 18 272
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Total equity 18 571 18 237 18 272
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TOTAL LIABILITIES AND EQUITY 100 183 78 298 73 104
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Consolidated statement of comprehensive income
(in thousands of 2025 III 2024 III 2025 9 2024 9
euros) quarter quarter months months
(July- (July- (January- (January-
September) September) September) September)
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Revenue 5 080 7 057 14 399 19 101
Cost of sales -4 281 -5 987 -11 603 -15 951
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Gross profit/loss 799 1 070 2 796 3 150
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Distribution
costs -376 -327 -1 410 -978
Administrative
expenses -326 -352 -1 166 -993
Other operating
income 32 21 254 33
Other operating
expenses -9 -10 -29 -17
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Operating
profit/loss 120 403 445 1 195
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Finance income 40 31 76 57
Finance costs -28 -92 -94 -448
Total finance income
and finance costs 12 -61 -18 -391
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Profit/Loss
before tax 132 342 427 804
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Income tax
expense 0 0 -28 -169
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Net profit/loss
for the period 132 342 399 635
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Attributable to
owners of the parent 132 342 399 635
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Comprehensive income
for the period 132 342 399 635
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Attributable to
owners of the parent 132 342 399 635
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Basic profit/loss
per share 0,011 0,029 0,033 0,054
Diluted
profit/loss per
share 0,011 0,028 0,033 0,052
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The customer satisfaction score for the last 12 months, collected at different
stages of the customer journey, remained at 9.5 out of 10 at the end of the
third quarter (Q2 2025: 9.5; Q3 2024: 8.4).
Key events in development projects
During the quarter, we began construction activities in four new development
projects. In August, construction of the first residential buildings (Jalami tn
6/1 and 6/2) of the Luuslangi project's Phase II commenced, which will result in
39 new homes (general contractor Mitt & Perlebach OÜ, financier LHV Pank AS). In
September, construction began on the Olemuse project in Nõmme with 72 new homes
(general contractor NOBE OÜ, financier Coop Pank AS), construction started on
the Peakorter development in North Tallinn with 67 homes (general contractor Oma
Ehitaja AS, financier Coop Pank AS), and on the first terraced houses in the
next phase of the Iseära project in Harkujärve with 30 homes (general contractor
Tesron Ehitus OÜ, financier Bigbank AS). All projects are scheduled for
completion during 2026 or early the following year.
In Q3 2025, we signed the first sales agreements for the Wohngarten development
project in Berlin.
In September, we acquired a development property at Linnamäe tee 21a, in the
Kuristiku subdistrict of Lasnamäe, Tallinn, at an auction held by the Land and
Spatial Development Board. A comprehensive residential and commercial building
complex is planned for the nearly 8 700 m² property, creating modern
opportunities for living, working, and leisure in the area. The transaction
value is EUR 1.1 million, and the total estimated investment volume of the
project is approximately EUR 22 million.
In September, the Tallinn City Council established the detailed spatial plan for
the Juhkentali tn 48 property in the city center with decision no. 92.
During the quarter, the final terraced houses of the Iseära second phase were
completed, and we handed over 38% of the homes completed in this phase to
customers.
Events after the reporting period
After the reporting date, we acquired a development property at Järveotsa tee
16c in the Haabersti district of Tallinn via auction. A residential building
complex, along with commercial spaces that add value to the local living
environment, is planned for the nearly 13 300 m² property. The transaction value
is EUR 1.1 million, and the total estimated investment volume of the project is
approximately EUR 20 million.
In October, construction works began on the Virmalise project. A four-story
residential building with 28 new homes and a courtyard area will be completed at
Virmalise tn 3 by the end of 2026. The general contractor for the project is
Bildgren Ehitus OÜ, and the architectural solution was created by Liven and
Arhitektuuribüroo Kuup Ruut OÜ. The construction is financed by Bigbank AS.
In October, we also began construction works on the new Iseära apartment
buildings (Lutsu tn 2, 4, and 6). The project will see the completion of 36 new
homes in the autumn of 2026. The general contractor for the apartment buildings
is Oma Ehitaja AS, and the construction is financed by Bigbank AS.
In October, the first homes in the Regati development project were completed,
and handovers to new owners began.
Significant developments in the economic environment in the period under review
In the third quarter of 2025, the downward trend of the 6-month Euribor rate
paused, and the rate stabilized at 2.10% by the end of the quarter (30.06.2025:
2.05%; 31.12.2024: 2.57%).
Inflation in the euro area has fallen close to the European Central Bank's (ECB)
long-term target (2%), and after several base interest rate cuts (by 100 basis
points in four stages) in the first half of 2025, the ECB decided in September
to leave interest rates unchanged, citing the need to assess the impact of
previous decisions on the economy. The ECB forecasts inflation for 2025-2027 at
2.1%, 1.7%, and 1.9% respectively, which suggests that the monetary policy
stance is likely to remain stable in the near term.
In Estonia, the annual consumer price growth in the third quarter of 2025 was
faster than in the euro area, with prices rising by 5.2% year-on-year (Q2
2025: 4.8%; Q3 2024: 3.0%). According to Eesti Pank's latest forecast, average
inflation in 2025 will be around 5.3%, reflecting the impact of production
costs, tax increases and continued wage growth. The consumer price index has
risen by 3.5% over the past nine months.
Based on the latest available data from Statistics Estonia and our estimates,
the average gross wage grew by nearly 9% year-on-year in the third quarter,
outpacing consumer price inflation. Despite wage growth, consumer confidence has
remained low for a prolonged period, as confirmed by economic experts, even if
the situation is not objectively comparable to historical lows, as data from the
Estonian Institute of Economic Research suggests.
According to the Land and Spatial Development Board's purchase and sales
statistics, the number of apartment (residential) transactions in Tallinn
increased by 1.9% in the third quarter of 2025 compared to the previous quarter
(Q3 2025: 2 332; Q2 2025: 2 289 transactions). Compared to the same period of
the previous year, the increase was 7.6%, indicating an increase in home buyer
activity. The number of transactions in the first nine months of 2025 reached
6 757, up 15.8% on the same period of the previous year (first nine months of
2024: 5 837 transactions). Transaction activity has increased mainly in the
secondary market, but there has also been a pick-up in the new developments
segment, pointing to a gradual market recovery.
Compared to the second quarter of 2025, the supply prices of new developments
remained generally stable in the third quarter. Based on data collected from the
Citify database, the number of transactions increased by 15.6% compared to the
previous quarter (Q2: 365 transactions; Q1: 360 transactions) and by 52.3% in a
year-on-year comparison with the third quarter of 2024 (Q3 2024: 277
transactions). In the first nine months of 2025, the number of offers has
increased by 4.3% and the average price per square meter by 3.1%, indicating a
moderate increase in supply and price levels. The increase in the VAT rate from
22% to 24%, which took effect on July 1, 2025, will increase the price burden
for end-users, but its impact on the new developments market is expected to
manifest with some delay in the following periods.
Outlook for the future
This year, Liven has added several new projects to its portfolio, for which
construction began either in the last quarter or immediately thereafter. We will
continue to sign sales contracts in all projects currently on sale in the last
quarter of the year. As of the reporting date, we have already signed more sales
contracts than in all of 2024, and we expect a new sales contract record for
Liven by the end of the year.
Although the halt in the decline of Euribor and fragile consumer confidence do
not create an overly supportive sales environment, it is clear that demand for
Liven homes exists. In the near future, we expect a stable recovery of the
environment, supported by continued (although slower) wage growth and banks'
willingness to finance loans. More broadly, the market's further development
remains largely dependent on external factors, particularly interest rates, the
geopolitical situation, and the tax environment.
We are still hopeful that the drawn-out processes for both the Kadaka tee 88 and
Erika 12 properties will be completed in 2025, but if the formation of the new
coalition and city government takes longer than usual, the establishment of the
plans will likely be postponed to the new year.
The financial results for Q3 and for the first 9 months of 2025 were largely in
line with expectations, reflecting the timing of construction completions. The
majority of 2025 revenue and profit will be generated in the final quarter,
adding to the EUR 14.4 million in sales revenue and EUR 0.4 million in net
profit earned in the first 9 months. Of the EUR 56.1 million presale portfolio
at the end of Q3 (30.06.2025: EUR 38.2 million; 31.12.2024: EUR 35.6 million),
projects completing in 2025 account for EUR 39.0 million. The vast majority of
this is from the Regati project, where we began handing over the first homes at
the end of October.
Achieving the previously expected EUR 55 million in sales revenue for 2025
remains possible if positive circumstances align. However, sales revenue depends
primarily on the timing of home handovers, which is affected by the slightly
later-than-expected completion of the Regati project, meaning some handovers and
sales revenue may be deferred to the beginning of the new year. Therefore, we
currently consider it more likely that, depending on the pace of handovers, the
2025 sales revenue will be between EUR 45-50 million. The assumption of
achieving a 20% return on equity in 2025 remains.
With construction completions and home deliveries, the balance of borrowings
will decrease by the end of 2025 to a level near the beginning of the year, and
the capital structure will also improve due to the profit earned. As is
characteristic of Liven's business model, construction loan volumes are cyclical
and depend heavily on the composition of the development portfolio. Therefore,
we forecast loan balances to increase again in mid-2026, primarily due to the
financing needs of construction projects started in the second half of 2025.
Real estate development is characterized by a long-time lag in financial results
and temporal shift between marketing expenses and sales revenue. In the third
quarter, we actively continued sales for development projects, the sales revenue
and profit for which will be recognized in later periods, mainly in the 2026
financial results.
In 2026, construction will be completed on four projects, where it is possible
to hand over up to 205 new homes with a potential sales revenue of approximately
EUR 55 million. Added to this will be sales revenue from homes completed in
2025 but not yet sold or handed over. Thus, the foundation for a good result in
2026 has been laid, and we continue to work towards the 2027 result.
Of the projects currently under construction, Peakorter I phase and Wohngarten
in Berlin, Germany, will be completed in 2027.
The new property acquisitions made this quarter and in October add both a new
region and temporal continuity to the development portfolio. 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.
Joonas Joost
Liven AS CFO
E-mail: [email protected]