Consolidated unaudited interim report for the II quarter and first 6 months of 2025

A webinar on the presentation of the results (in Estonian only) will take place on 31 July at 13:00 (EEST), more information.

In the first half of 2025, in both Q1 and Q2, the market continued to recover. In addition to the contracts under the law of obligations (sales contracts), there was also strong interest in paid reservations in new projects. During Q2, we signed a total of 31 sales contracts (Q1 2025: 25; Q2 2024: 47) and in total we have signed 52 sales contracts in six months of 2025 (2024: 63). The largest contribution to new contracts signed during the second quarter came from the soon-to-be-in-construction Luuslangi project, and from the Regati development under construction. The biggest contribution to the sales revenue in the Q2 came from the completed and delivered Iseära apartments. Sales of previously completed homes took place in the Luuslangi project.

The weekly sales ratio, which reflects the number of homes going out of supply through either sales contracts or paid reservations reached its highest level in recent years during the second quarter, exceeding 4% in May. The average performance for the Q2 (2.6%) exceeded both the Q1 2025 average (1.8%) and the long-term average. The long-term average is considered to be 1.5-2.0%.

Sales contracts signed during the period that are not transferred under a real right contract within the same period are recognised as presales. At the beginning of the quarter, the estimated value of previously recognised presales was EUR 40.7 million (EUR 35.6 million at the beginning of 2025), all related to projects scheduled for completion in 2025. During the quarter, we signed new contracts totalling EUR 7.8 million in sales revenue, of which EUR 5.9 million were recognised as presales. This includes contracts for buildings scheduled for completion in 2026. Including earlier presales, we enter the second half of 2025 with 88 sales contracts in projects completing in 2025, amounting to EUR 38.2 million in sales revenue.

In Q2 of 2025, the apartment buildings of the II phase of the Iseära project were completed and 32 homes were delivered to customers. In addition, we sold 3 previously completed homes in the Luuslangi development. In total, we handed over 35 apartments during the period (Q1 2025: 6; Q2 2024: 29). The sales revenue for the second quarter was EUR 7 388 thousand (Q1 2025: EUR 1 931 thousand; Q2 2024: EUR 8 546 thousand) and the net profit for the quarter was EUR 974 thousand (Q1 2025: EUR -705 thousand; Q2 2024: EUR 443 thousand).

During the first 6 months, we delivered a total of 41 new homes (2024: 41), generated sales revenue of EUR 9 319 thousand (2024: EUR 12 045 thousand) and a net profit of EUR 269 thousand (2024: EUR 293 thousand).

The balance of cash and cash equivalents decreased by EUR 342 thousand during the quarter to EUR 9 574 thousand. Total assets increased by EUR 6 340 thousand during the quarter to EUR 95 149 thousand at the end of the period. The increase in assets was mainly due to the construction of the Regati project.

Total borrowings increased by EUR 1,856 thousand to EUR 59,540 thousand. New construction loans of EUR 7,078 thousand were drawn during the quarter (including EUR 5,390 thousand for the Regati project), resulting in a net increase of EUR 3,693 thousand after repayments. Other loan commitments were reduced by EUR 1,800 thousand. While no significant changes in total borrowings are expected next quarter, the balance is set to decline notably by year-end as construction completes and homes are delivered.

Consolidated statement of financial position