Financial Performance - The Group's consolidated revenue for Q4 2025 was 4.5 million euros, a decrease from 10.5 million euros in Q4 2024, while the total revenue for 2025 was 35.4 million euros compared to 38.4 million euros in 2024 [1] - The Group recorded a net loss of 0.5 million euros in Q4 2025, down from a net profit of 1.0 million euros in Q4 2024, with a total net profit for 2025 of 1.0 million euros, compared to 2.1 million euros in 2024 [2] - Profitability was impacted by a decrease in the number of apartments handed over, with 141 apartments delivered in 2025 compared to 194 in 2024, and a decline in profit margins from 17.8% in 2024 to 16.9% in 2025 [3] Marketing and Development Activities - Marketing expenses increased to 1.3 million euros in 2025 from 0.9 million euros in 2024, driven by more intensive sales and marketing activities due to a larger number of projects [3] - The Group expanded its development portfolio with three new plots of land, planning to include approximately 700 apartments and around 2,500 m² of commercial space [5] - The Group commenced construction on four new development projects in 2025, including residential projects in both Estonia and Latvia [9][10][11] Sales and Inventory - The Group concluded primary sales agreements for 185 homes in 2025, valued at 36.1 million euros, nearly double the 109 homes and 19.8 million euros in 2024 [6] - As of December 31, 2025, the Group had 10 residential development projects on sale, with 355 new homes completed and 92% sold [7] - The inventory of completed unsold apartments at the end of 2025 was 28 units, with 428 new homes under construction, representing a 223% increase from the previous year [8] Bond Offering - On November 21, 2025, the Group successfully completed a public offering of bonds, initially set at 6 million euros but increased to 8 million euros due to strong demand, with a fixed annual interest rate of 9.50% [4] Future Outlook - The Group plans to launch five new development projects in 2026, including two residential and one commercial project in Estonia, and one residential and one commercial project in Latvia [13]

Company Overview - Hepsor AS is a developer of residential and commercial real estate operating in Estonia, Latvia, and Canada [3] - The company has created a total of 2,003 homes and nearly 44,787 square meters of commercial space over fourteen years [3] - Hepsor is recognized as the first developer in the Baltic states to implement innovative engineering solutions for energy-efficient and environmentally friendly buildings [3] Project Details - Hepsor E18 SIA signed a loan agreement for 5.25 million euros to finance the construction of the Ķiršu Kalna Mājas residential project [1] - The project includes the construction of two apartment buildings with a total of 54 apartments, with a total development cost of 8.5 million euros [2] - Construction and sales have already commenced, with a planned completion date in the first quarter of 2027 [2] - At the time of the loan agreement signing, 41% of the apartments had been reserved or pre-sold [2] Future Developments - Hepsor has completed a total of 404 homes in Latvia, with 98% sold [2] - The company expects to complete more than 500 new homes in the coming years [2] - The company's portfolio includes 25 development projects with a total area of 178,200 square meters [3]

Core Viewpoint - Hepsor P113 OÜ has successfully claimed damages against Novel Clinic Assets OÜ amounting to EUR 6,090,257.27, following the termination of a lease agreement due to repeated breaches by the tenant [1][4]. Group 1: Lease Termination and Legal Proceedings - The lease agreement with Novel Clinic Assets OÜ was terminated on 4 September 2023 due to material and repeated breaches of lease terms [2]. - Novel Clinic Assets OÜ contested the termination and sought reinstatement of the lease, damages, and return of property left on the premises [2]. - Hepsor P113 OÜ filed a counterclaim for damages caused by the early termination of the lease agreement [3]. Group 2: Bankruptcy and Court Decisions - On 4 December 2024, Novel Clinic Assets OÜ was declared bankrupt, with the decision finalized on 11 February 2025 [3]. - The court approved the list of creditors on 19 December 2025, confirming Hepsor P113 OÜ's right to terminate the lease and accepting its damages claim as a first-ranking claim [4]. - The entire claim is secured by the landlord's statutory lien over the property left by Novel Clinic Assets OÜ [5]. Group 3: Company Overview - Hepsor AS is a developer of residential and commercial real estate operating in Estonia, Latvia, and Canada, with a portfolio of 25 development projects totaling 178,200 m² [5]. - The company has created 2,003 homes and nearly 44,787 m² of commercial space over fourteen years, implementing innovative engineering solutions for energy efficiency [5].

Core Viewpoint - Hepsor AS and AS Phoenix Land have established a joint venture to develop the next phase of the Manufaktuuri quarter in Tallinn, focusing on residential and commercial real estate development [1][2][4]. Group 1: Joint Venture Details - The new joint venture, Hepsor PHX5 OÜ, is equally owned by Hepsor AS and AS Phoenix Land, with a non-monetary contribution of EUR 5.8 million from AS Phoenix Land [2]. - The joint venture will initiate the development of the property located at Manufaktuuri 3, which has a valid detailed plan [3]. Group 2: Development Plans - An architectural competition is planned to determine the best design solution for the high-rise building, which can be up to 60 storeys tall [3]. - The Manufaktuuri quarter is expected to include approximately 1,100 homes and commercial premises in the future [6]. Group 3: Previous Developments - This project marks the fifth development in the Manufaktuuri quarter, with previous projects having completed 421 homes, 97% of which have been sold [5]. - Ongoing projects include the first phase of the Manufaktuuri Vabrik project, which will add 152 new homes, and the M12 development project, which will complete 49 new homes [5]. Group 4: Company Background - Hepsor AS is a developer of residential and commercial real estate operating in Estonia, Latvia, and Canada, with a portfolio of 25 development projects totaling 178,200 m² [6]. - The company has created 2,003 homes and nearly 44,787 m² of commercial space over fourteen years, implementing innovative engineering solutions for energy efficiency [6].

Company Overview - Hepsor AS is a developer of residential and commercial real estate operating in Estonia, Latvia, and Canada [1] - The company has created 2,003 homes and nearly 44,787 square meters of commercial space over fourteen years of operation [1] - Hepsor is recognized as the first developer in the Baltic states to implement innovative engineering solutions for energy-efficient and environmentally friendly buildings [1] Development Projects - The company's portfolio includes 25 development projects with a total area of 178,200 square meters [1] - Hepsor is also active in five projects in Canada, focusing on preparing detailed spatial plans for land to achieve greater building rights [1] Financial Reporting Schedule - Hepsor AS plans to disclose its consolidated financial results in 2026 with the following schedule: - 18 February 2026: Unaudited interim report for Q4 and 12 months 2025 [1] - 24 April 2026: Audited annual report for 2025 [1] - 29 April 2026: Unaudited interim report for Q1 2026 [1] - 29 July 2026: Unaudited interim report for Q2 and six months 2026 [1] - 28 October 2026: Unaudited interim report for Q3 and nine months 2026 [1]

Core Points - Hepsor AS successfully completed its first bond offering under a 20-million-euro bond program, approved by the Estonian Financial Supervision Authority [1][2] - The bond issued has a nominal value of 1,000 euros, a fixed annual interest rate of 9.50%, and matures on 26 November 2028 [2] - The offering was oversubscribed by 1.4 times, with total subscriptions amounting to 8.5 million euros from 1,079 investors [3] Offering Details - Hepsor offered up to 6,000 bonds, with the option to increase by 2,000 bonds in case of oversubscription [2] - The distribution of subscriptions was 72.8% from Estonia, 24.6% from Latvia, and 2.6% from Lithuania [3] - The total volume of the offering was increased to 8 million euros due to oversubscription [3] Investor Insights - The management expressed gratitude to investors for their trust and support in Hepsor's growth objectives [4] - Strong investor confidence was noted, particularly from Latvian investors who subscribed for over 2 million euros [4] - The bond issuance reflects a positive perception of Hepsor as a developer of high-quality homes in Riga [4] Bond Trading and Tax Benefits - Bonds will be transferred to investors' accounts on 26 November 2025, with trading commencing on Nasdaq Tallinn Stock Exchange on 27 November 2025 [5] - Estonian residents can defer income tax on interest from the bonds by submitting an application to the issuer [6] Allocation Principles - Preference in bond allocation was given to existing Hepsor shareholders, employees, and institutional investors, who received 100% of their subscribed amount [7] - Other investors received 87.5% of their subscribed amount, with a minimum allocation of 10 bonds [7] Company Overview - Hepsor AS is a developer of residential and commercial real estate, operating in Estonia, Latvia, and Canada [8] - The company has developed 2,003 homes and nearly 44,787 square meters of commercial space over 14 years [8] - Hepsor is recognized for implementing innovative engineering solutions for energy-efficient buildings [8]

Core Viewpoint - Hepsor AS is launching a bond program totaling EUR 20 million, with an initial public offering aiming to raise up to EUR 6 million, potentially increasing to EUR 8 million, targeting retail and institutional investors in Estonia, Latvia, and Lithuania [1][2][3]. Group 1: Bond Offering Details - The bond being offered is an unsecured and unsubordinated bond with a nominal value of EUR 1,000 and an interest rate of 9.50% per annum [2]. - The subscription period for the bond offering is from 12 November 2025 to 21 November 2025, with the first trading day expected on 27 November 2025 [4]. - The proceeds from the bond offering will be used to refinance an existing EUR 6 million loan with AS LHV Pank, and any additional funds will support real estate development projects [3]. Group 2: Financial and Legal Framework - The bonds will be listed on the Baltic Bond List of the Nasdaq Tallinn Stock Exchange, although admission to trading is not guaranteed [7]. - Investors must have a securities account with a Nasdaq CSD SE Estonian branch operator or a financial institution that is a member of Nasdaq Riga or Nasdaq Vilnius to subscribe [5][6]. - The bonds are subject to financial covenants, including maintaining a minimum equity share of 20% in assets and ensuring sufficient liquidity for interest payments [2]. Group 3: Company Background - Hepsor AS is a developer of residential and commercial real estate, operating in Estonia, Latvia, and Canada, with a portfolio of 25 development projects totaling 178,200 square meters [10]. - The company has developed 2,003 homes and nearly 44,787 square meters of commercial space over fourteen years, implementing innovative engineering solutions for energy efficiency [10].

Financial Performance - Hepsor's consolidated revenue for Q3 2025 was 8.8 million euros, a decrease from 20.4 million euros in Q3 2024. For the first nine months of 2025, revenue increased to 30.9 million euros from 27.9 million euros in the same period of 2024 [1] - The net profit for Q3 2025 was 1.2 million euros, down from 2.7 million euros in Q3 2024. However, the net profit for the first nine months of 2025 rose to 1.5 million euros from 1.2 million euros in 9M 2024 [2] Property Transactions - The financial results were significantly impacted by the sale of properties to the joint venture Hepsor SOF OÜ, with a total transaction value of 9.0 million euros, generating a profit of 1.8 million euros recognized in Q2 and Q3 [3] Development Projects - A new residential development project in Riga at Starta 17 was added, planning to construct 255 new homes in several stages [6] - As of September 30, 2025, Hepsor had 10 residential development projects for sale, with 355 new homes and 453 m² of commercial space completed, of which 87% (309 homes) have been sold [7] - The Group has 374 new homes under construction, with 173 in Latvia and 201 in Estonia [8] Commercial Real Estate - Construction of the StokOfiss U34 multifunctional commercial building in Riga began in 2024, with a leasable area of 8,740 m². As of September 30, 2025, 70% of the leasable area was covered by lease agreements [9] Canadian Operations - Hepsor's Canadian operations focus on land-use planning for development projects, with investments in five projects. A recent decision by the Toronto City Council granted building rights for a development project, allowing for the construction of two residential towers [10] Future Outlook - Hepsor plans to commence construction of two development projects in Riga in Q4 2025 and launch four new projects in the first half of 2026 [11] - An investor meeting is scheduled for November 13 in Estonia and November 14 in Latvia to discuss financial results and future plans [11]

Group 1: Loan Agreements and Project Financing - Hepsor Phoenix 3 OÜ and Hepsor Phoenix 4 OÜ signed loan agreements with AS LHV Bank totaling 40.3 million euros to finance two development projects in Tallinn's Manufaktuuri quarter [1] - Hepsor Phoenix 3 OÜ secured a loan of 33.3 million euros for the construction of the first phase of the Manufaktuuri Factory, which will include 152 new homes with a total sales area of 10,420 m², with construction expected to be completed by Q4 2027 [2] - Hepsor Phoenix 4 OÜ signed a 7 million euros loan agreement for the residential development project Manufaktuuri 12, which consists of two apartment buildings with 49 apartments and a total saleable area of 3,090 m², scheduled for completion in the second half of 2026 [5] Group 2: Project Overview and Significance - The Manufaktuuri Factory is the largest development project in Hepsor's history, aimed at regenerating a former industrial area into a modern urban space that combines historic ambience with contemporary living [3] - The project is considered special not only within Hepsor's portfolio but also for Tallinn, as it is intended to be a state-of-the-art building that meets modern living expectations [4] - The Manufaktuuri quarter development, in partnership with Tolaram Group, has already seen the completion of 421 homes, with 96% sold, and the new agreements will lead to the construction of 201 new homes over the next two years [6] Group 3: Company Background - Hepsor AS is a developer of residential and commercial real estate operating in Estonia, Latvia, and Canada, with a total of 2,076 homes and nearly 36,300 m² of commercial space developed over fourteen years [7] - The company has implemented innovative engineering solutions to enhance energy efficiency and environmental friendliness in its buildings, with a portfolio of 25 development projects covering a total area of 178,200 m² [7]

Company Overview - Hepsor AS is a developer of residential and commercial real estate operating in Estonia, Latvia, and Canada [2] - The company has created 2,076 homes and nearly 36,300 square meters of commercial space over its fourteen years of operation [2] - Hepsor has implemented several innovative engineering and technical solutions to enhance energy efficiency and environmental friendliness in its buildings [2] - The company's portfolio includes a total of 25 development projects with a total area of 178,200 square meters [2] Leadership Changes - On 5 August 2025, Henri Laks was elected as the new Chairman of the Supervisory Board of Hepsor AS [1] - Henri Laks is a co-founder of Hepsor and has been a member of the Management Board since 2011 [1] - His mandate as a member of the Supervisory Board will be valid for three years [1] - Laks emphasized his commitment to contributing to the company's strategic and supervisory development, leveraging over 20 years of experience in the real estate sector [1] Supervisory Board Composition - As of 1 August 2025, the Supervisory Board of Hepsor AS consists of three members: Henri Laks, Kristjan Mitt, and Andres Pärloja [2]