Correction: Hepsor AS consolidated unaudited interim report for Q1 2025

In the consolidated unaudited interim report for Q1 published by Hepsor AS on 30 April 2025, the operating profit for Q1 2025 was mistakenly presented as a negative amount in the consolidated statement of profit and loss and other comprehensive income.

Corrected notice to follow:

Hepsor’s consolidated sales revenue for Q1 2025 was 8.2 million euros (Q1 2024: 2.3 million euros).

The Group's net loss for the first quarter was 0.1 million euros (Q1 2024: 1.0 million euros), of which the net loss attributable to the owners of the parent was 0.2 million euros (Q1 2024: 0.9 million euros).

In coordination with the Group’s Supervisory Board, the Management Board proposes to distribute 1,0 million euros (EUR 0.26 per share) in dividends to shareholders in 2025 from the profits of previous periods. Based on the share price as of 31 March 2025, this results in a dividend yield of 6.9%.

Development projects under construction and available for sale

In the first quarter of 2025, we continued the construction and sales of projects in our development portfolio. Customer interest in Hepsor's developments has remained stable. In Latvia, the Annenhof Majas development project at Jurmalas gatve 74 was completed at the beginning of the year, where customer interest in purchasing new apartments has been high. By the end of March, 60% of all apartments in the Annenhof Majas development project had been sold.

In the first quarter of 2025, we handed over 42 homes to customers, compared to 12 homes during the same period in 2024. Of these, 26 homes were delivered in Tallinn, and 16 in Riga.

During the reporting quarter, construction and sales continued on the first phase of the main building of the former Baltic Cotton Spinning and Weaving Factory at Manufaktuuri 5, where 150 new homes are planned to be built.

In 2024, we started the construction of StokOfiss 34 at Ulbrokas 34 in Riga. StokOfiss 34 is a multifunctional commercial building with 8,740 m² of rental space. While in 2024, we had signed lease agreements for 6% of the total rental area, as of 31 March 2025, the leases cover nearly half, or 47%, of the total rental area. The planned completion of the construction is in the third quarter of 2025.

In the associate company Hepsor P113 OÜ, the leasing of the P113 Health Centre office building continued, and as of 31 March 2025, 82% of the rental space had been leased.

Vision for the future

In April 2025, Hepsor Finance OÜ signed a shareholders' agreement under which a 50% stake in Hepsor SOF OÜ was sold to the EfTEN Special Opportunities Fund. According to the shareholders' agreement, Hepsor SOF OÜ will acquire 5 properties from Hepsor's Group companies in Lasnamäe, with a total value of 9.0 million euros. Hepsor's shareholders will earn a total of approximately 3.7 million euros in profit from these transactions, of which 1.9 million euros will be realised in the results of the following quarters in 2025. The released capital will be directed to other development projects of Hepsor Group in its current home markets. The cooperation project between Hepsor and EfTEN in Lasnamäe includes the construction of approximately 300 apartments, along with smaller amount of commercial space. The development will be carried out in three stages, with around 100 new homes in each stage. Construction of the first stage is planned to begin in 2026.

In 2025, we plan to start the construction of four new residential development projects. In Tallinn, at Manufaktuuri Quarter, we will begin the next development project at Manufaktuuri 12, where 49 new homes are planned. This will be Hepsor’s fourth development in the area. The planned start of construction is in the second half of 2025.

In Riga, Latvia, we plan to start the construction of a total of 227 new homes:

• At Eiženijas iela 18, we plan to start the construction of two apartment buildings, with a total of 54 new homes;
• In the Zala Jugla development project at Braila iela 23, Jugla, we will begin the construction of the first phase, which will include 70 new homes;
• At Dzelzavas 74c, we plan to start the construction of an apartment building with 103 apartments.

During the reporting year, we aim to begin the construction of the first phase of the Veidema Quarter project at Ganibu Dambis 17a, a stock-office type development.

The full consolidated unaudited interim report for the first quarter of 2025 is available on Hepsor’s website:

https://hepsor.ee/en/for-investors/stock/reports-2/

Consolidated statement of financial position

in thousands of euros	31 March 2025	31 December 2024	31 March 2024
Assets
Current assets
Cash and cash equivalents	3,262	6,249	7,674
Trade and other receivables	1,589	761	1,351
Current loan receivables	200	200	311
Inventories	60,355	64,141	83,086
Total current assets	65,406	71,351	92,422
Non-current assets
Property, plant and equipment	324	288	230
Intangible assets	2	2	3
Investment properties	7,980	7,980	0
Financial investments	7,244	6,424	2,001
Non-current loan receivables	2,584	2,428	1,947
Other non-current receivables	384	340	235
Total non-current assets	18,518	17,462	4,416
Total assets	83,924	88,813	96,838
Liabilities and equity
Current liabilities
Loans and borrowings	17,942	23,336	35,546
Current lease liabilities	39	52	116
Prepayments from customers	562	724	2,916
Trade and other payables	6,184	6,542	6,150
Total current liabilities	24,727	30,654	44,728
Non-current liabilities
Loans and borrowings	32,668	31,352	28,596
Non-current lease liabilities	162	162	29
Other non-current liabilities	4,765	4,635	2,289
Total non-current liabilities	37,595	36,149	30,914
Total liabilities	62,322	66,803	75,642
Equity
Share capital	3,855	3,855	3,855
Share premium	8,917	8,917	8,917
Reserves	385	385	385
Retained earnings	8,445	8,853	8,039
Total equity	21,602	22,010	21,196
incl. total equity attributable to owners of the parent	20,531	20,912	20,114
incl. non-controlling interest	1,071	1,098	1,082
Total liabilities and equity	83,924	88,813	96,838

Consolidated statement of profit and loss and other comprehensive income

in thousands of euros	Q1 2025	Q1 2024
Revenue	8,206	2,271
Cost of sales (-)	-7,189	-2,234
Gross profit	1,017	37
Marketing expenses (-)	-279	-185
Administrative expenses (-)	-412	-443
Other operating income	23	45
Other operating expenses (-)	-17	-18
Operating profit (-loss) of the year	332	-564
Financial income	49	37
Financial expenses (-)	-478	-438
Profit before tax	-97	-965
Net profit (-loss) for the year	-97	-965
Attributable to owners of the parent	-220	-879
Non-controlling interest	123	-86
Other comprehensive income (-loss)
Change in value of embedded derivatives with minority shareholders	-150	0
Exchange rate differences from foreign entities	-161	0
Other comprehensive income (-loss) for the period	-311	0
Attributable to owners of the parent	-161	0
Non-controlling interest	-150	0
Comprehensive income (-loss) for the period	-408	-965
Attributable to owners of the parent	-381	-879
Non-controlling interest	-27	-86
Earnings per share
Basic (euros per share)	-0,06	-0,23
Diluted (euros per share)	-0,06	-0,23

Henri Laks
Member of the Management Board
Phone: +372 5693 9114
e-mail: henri@hepsor.ee

Hepsor AS (www.hepsor.ee) is a developer of residential and commercial real estate. The Group operates in Estonia, Latvia and Canada. During our fourteen years of operation, we have created 2,076 homes and nearly 36,300 m² of commercial space. As the first developer in the Baltic countries, Hepsor has implemented several innovative engineering and technical solutions that make the buildings built by the company more energy-efficient and thus more environmentally friendly. The company's portfolio includes a total of 25 development projects with a total area of 172,800 m².