Pro Kapital Council approved Consolidated Interim Report for II Quarter and 6 Months of 2025 (Unaudited)

Core Insights - The company is experiencing significant growth in real estate development across its key markets, with a notable increase in revenue and profitability in the first half of 2025 compared to the same period in 2024 [14][21][24]. Real Estate Development - In Tallinn, the Kalaranna development is nearing completion, with 76 sold apartments handed over and an overall sales rate of 60.7% as of Q2 2025 [1]. - The Kristiine City area is seeing continued development, with four projects adding approximately 35,000 sqm of gross building area and around 350 residential units [2]. - The White Building project in Kristiine City has achieved a sellout rate of 62.4%, with completion expected by November-December 2025 [3]. - A new 7-story residential building with 90 units is under construction, with a current sellout rate of 12.2% and expected completion in October-November 2026 [4]. - In Riga, the Blue Marine project is in preparation, with 96 residential units planned following the successful sales of River Breeze Residence [5][6]. - In Vilnius, the Šaltinių Namai Attico project is progressing with a sellout rate of nearly 40% for villas and over 10% for the commercial building, with substantial completion expected by the end of 2025 [7]. Financial Performance - Total revenue for the first half of 2025 was €28.5 million, a significant increase from €6.9 million in the same period of 2024, with Q2 revenue reaching €16.1 million compared to €3.9 million in 2024 [14][21]. - Gross profit for the first six months of 2025 increased to €10.2 million from €2.4 million in 2024, with a gross profit margin of 36% [17][21]. - The operating result improved to a profit of €7.5 million in the first half of 2025, compared to a loss of €0.9 million in the same period in 2024 [18][21]. - The net result for the first half of 2025 was a profit of €6.2 million, compared to a loss of €3.0 million in 2024 [19][21]. - Cash generated from operating activities was €8.5 million in the first half of 2025, compared to a cash outflow of €4.5 million in the same period of 2024 [20][21]. Market Outlook - The company is well-positioned to capitalize on improving macroeconomic conditions and is focused on disciplined execution and strategic development [13][14]. - The real estate market is expected to normalize by the end of 2025, despite previous slowdowns due to rising interest rates [12].