Core Insights - The Estonian real estate market showed stable and moderately recovering activity in Q3 2025, with transaction numbers comparable to the previous quarter and a slight upward trend in average prices per square meter, particularly in Tallinn [1][2] - The market is influenced by high interest rates and buyer caution, but improved confidence and stabilized economic expectations suggest a balanced phase, with moderate recovery expected in H1 2026 if macroeconomic conditions remain stable [2] - Arco Vara's first public bond offering was a significant event, being oversubscribed more than twofold, marking the largest bond issue among Baltic real estate developers to date [3] Market Overview - The Estonian real estate market is adapting after recent cooling, with stable transaction activity and strong demand for high-quality residential spaces [1][2] - The market has reached a balance after periods of rapid growth and decline, with both prices and transaction volumes stabilizing [2] Company Developments - Arco Vara's bond issue aims to finance the Luther Quarter development, transforming a historic industrial area into a modern urban space [4] - The company envisions creating a "city within a city" in the Luther Quarter, integrating residential, commercial, and public spaces [5] - Ongoing developments include Rannakalda, Soodi 6, and Spordi, with significant sales activity and construction progress reported [6][7][8] Financial Performance - For the first nine months of 2025, Arco Vara reported sales revenue of EUR 5,624 thousand, an increase of EUR 1,537 thousand compared to the same period in 2024 [14] - The company achieved an operating profit of EUR 622 thousand and a net profit of EUR 214 thousand, a significant turnaround from losses in the previous year [14][19] - In Q3 2025, 25 apartments were sold, reflecting a notable increase in sales activity compared to Q3 2024 [15] Strategic Focus - Arco Vara is focusing on active sales efforts and the progress of development projects, with specific targets for the fourth quarter [11][12] - The company is strategically exiting the Bulgarian market to concentrate on Estonian projects, enhancing operational efficiency [10] - The approval of the Arcojärve detailed spatial plan is expected to lay the groundwork for further investments in inner-city developments [9] Key Performance Indicators - As of September 30, 2025, the Group's total assets more than doubled compared to the previous year, primarily due to new project acquisitions [16] - The Group's net debt increased to EUR 47,407 thousand, largely due to the acquisition of the Luther Quarter [17] - The weighted average interest rate on the Group's interest-bearing liabilities was 9.09% as of September 30, 2025 [17]