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 Šaltiniu 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
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
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
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
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
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
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
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
Total equity attributable to owners of the Company		52 628	52 723	50 633
Non-controlling interest		483	1 105	588
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
CONTINUING OPERATIONS
Operating income
Revenue	12 450	3 054	18 158
Cost of goods sold	-8 243	-2 166	-12 735
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
Operating profit	2 542	-659	123
Finance income	13	42	123
Finance cost	-745	-1 073	-4 276
Profit/ loss before income tax	1 810	-1 690	-4 030
Income tax	80	-10	155
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
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) €	0,04	-0,03	-0,06

The full report can be found in the file attached.

Ann-Kristin Kuusik
CFO
+372 614 4920
prokapital@prokapital.ee

 

Attachment

• PKG_Q1_2025_ENG