Liven AS - Consolidated unaudited interim report for the IV quarter and 12 months of 2025

Core Insights - The company achieved a record annual result in 2025, signing a total of 176 sales contracts, which is a 36% increase from the previous year [2][36] - The sales revenue for Q4 2025 was EUR 34.9 million, significantly higher than both Q3 2025 and Q4 2024, with a net profit of EUR 5.0 million [10][39] - The company is entering 2026 with a presale portfolio of 101 homes valued at EUR 33.7 million, indicating strong future revenue potential [8][38] Sales Performance - In Q4 2025, 60 sales contracts were signed, maintaining the same level as the previous quarter and significantly higher than Q4 2024 [2][32] - The Iseära and Peakorter projects were the largest contributors to new contracts signed during the quarter [3] - The total sales revenue for the year reached EUR 49.3 million, reflecting a substantial increase from EUR 27.3 million in 2024 [10][36] Market Share and Position - Liven's market share in new sales transactions in Tallinn and adjacent municipalities was approximately 7-8% in 2025, down from 10% in 2024, but still the highest in the market [5] - The company ranked first in the reputation of real estate developers according to a Kantar Emor survey, indicating strong brand recognition [22] Financial Overview - The total assets decreased by EUR 13.7 million during Q4 2025, primarily due to the handover of completed homes [11] - The company reported a decrease in total liabilities by EUR 15.8 million, reaching EUR 62.9 million by the end of the quarter [12] - The return on equity for 2025 was 28.1%, exceeding the long-term target of 20% [39] Development Projects - The company completed and handed over 83 homes in Q4 2025, including 64 homes in the Regati I phase [9][17] - New construction projects, including the Virmalise and Iseära apartment buildings, are set to begin in 2026, expanding the development portfolio [18][19] - A new development property was acquired in Tallinn for EUR 1.1 million, with an estimated investment volume of EUR 20 million [20] Economic Environment - The 6-month Euribor stabilized at 2.14% by the end of Q4 2025, with inflation in the euro area remaining close to the ECB's target [27] - Consumer price growth in Estonia was 4.1% in Q4 2025, indicating a faster rate than the euro area [28] - A recovery in household purchasing power is expected in 2026, driven by income tax changes and wage growth [29] Future Outlook - The company forecasts a growth in the new developments market in 2026, supported by improved household financial conditions and stable interest rates [34] - The potential to hand over up to 268 homes in 2026 is anticipated, with an estimated sales revenue of EUR 86 million [37] - The company is actively seeking new properties to expand its development portfolio for the next 4-5 years [42]