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 Šaltinių 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
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