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

Core Insights - The real estate market showed signs of recovery in the first half of 2025, with increased sales contracts and strong interest in new projects [2][24] - The company signed a total of 52 sales contracts in the first half of 2025, a decrease from 63 in the same period of 2024, with significant contributions from the Luuslangi and Regati projects [2][4] - The average weekly sales ratio reached its highest level in recent years, exceeding 4% in May 2025, indicating a robust market activity [3] Sales Performance - In Q2 2025, the company signed 31 sales contracts, compared to 25 in Q1 2025 and 47 in Q2 2024 [2] - The sales revenue for Q2 2025 was EUR 7.388 million, a decrease from EUR 8.546 million in Q2 2024 [5][12] - The net profit for Q2 2025 was EUR 974 thousand, an increase from EUR 443 thousand in Q2 2024 [5][13] Financial Position - Total assets increased by EUR 6.34 million to EUR 95.149 million at the end of Q2 2025, primarily due to the construction of the Regati project [7][11] - Total borrowings rose by EUR 1.856 million to EUR 59.540 million, with new construction loans drawn during the quarter [8] - The balance of cash and cash equivalents decreased by EUR 342 thousand to EUR 9.574 million [7] Market Trends - The number of apartment transactions in Tallinn increased by 6.9% in Q2 2025 compared to Q1 2025, indicating a rise in buyer activity [24] - The stock of unsold ready-to-move-in apartments remained stable at around 1,000 units, suggesting sustained market competition [26] - The average gross wages rose by 7.5% year-on-year in Q2 2025, outpacing consumer price inflation, although consumer confidence remained low [23] Future Outlook - The company anticipates an increase in sales contracts and construction activities in the second half of 2025, supported by new projects added to its portfolio [27][28] - Expectations for continued economic recovery and demand for new residential real estate are present, although dependent on external factors such as interest rates and consumer confidence [28] - The company forecasts a potential revenue of up to EUR 55 million in 2025, with significant revenue generation expected in the second half of the year [31]