Pro Kapital Council approved Consolidated Interim Report for IV Quarter and 12 Months of 2025 (Unaudited)

Core Insights - The company reported a strong financial performance in 2025, with total revenue reaching EUR 53.2 million, a significant increase from EUR 18.2 million in 2024, and a fourth-quarter revenue of EUR 18.9 million compared to EUR 7.6 million in the same period last year [18][24]. Real Estate Development - In Tallinn, the construction of the white building in the Uus-Kindrali project was completed, with 39 residential units closed by year-end and 78% of the sellable area sold [1][2]. - A second residential building with 90 units is under construction, targeting completion in October-November 2026 [3]. - The company is pursuing additional projects in Kristiine City, aiming to add approximately 35,000 square meters of gross building area, with a building permit obtained for the Tondi 53 project [4][5]. Financial Performance - The gross profit for 2025 was EUR 18.8 million, up from EUR 5.4 million in 2024, with a gross profit margin of 35% [21][24]. - Operating profit for the year was EUR 14.7 million, compared to EUR 0.1 million in 2024, reflecting a significant improvement in operational efficiency [21][24]. - The net profit for 2025 was EUR 12.0 million, a turnaround from a loss of EUR 3.9 million in 2024, with earnings per share increasing to EUR 0.22 from a loss of EUR 0.06 [22][24]. Market Conditions - The company noted a softening in occupancy levels in hotel operations towards the end of the year, particularly in the leisure segment, although food and beverage revenue showed a modest year-on-year increase [12]. - In Italy, operations faced challenges due to subdued market activity, but the fundamentals of the bare ownership model remain strong, indicating potential for future growth [13][14]. Strategic Outlook - The company emphasized disciplined execution and long-term planning as key drivers of value creation, with a focus on delivering high-quality projects and advancing its strategic goals [15][16]. - The management expressed confidence in the company's ability to maintain sustainable growth, supported by a solid project pipeline and favorable market conditions [17].