Core Viewpoint - eQ Plc reported a significant decline in net revenue and operating profit for the first half of 2025, attributed to challenging market conditions and poor performance in its Corporate Finance and Investments segments [4][8][15]. Financial Performance - The Group's net revenue for January to June 2025 was EUR 28.3 million, down 17% from EUR 34.2 million in the same period of 2024 [3][4]. - Operating profit decreased by 35% to EUR 11.8 million from EUR 18.1 million year-on-year [4][8]. - The profit for the period was EUR 9.3 million, a 35% decline from EUR 14.3 million [5][8]. - Consolidated earnings per share fell to EUR 0.22 from EUR 0.35, marking a 36% decrease [5][8]. Segment Performance - Asset Management segment net revenue decreased by 5% to EUR 28.6 million, with operating profit down 13% to EUR 15.2 million [4][14]. - Corporate Finance segment net revenue plummeted by 72% to EUR 0.8 million, with an operating loss of EUR -0.9 million [3][15]. - The Investments segment reported a negative operating profit of EUR -1.3 million, a significant drop from EUR 0.5 million in the previous year, impacted by valuation changes and currency fluctuations [4][17]. Market Conditions - High market volatility and geopolitical tensions, including U.S. tariffs and conflicts in the Middle East, contributed to uncertainty in the capital markets [6][7]. - Despite these challenges, some stock markets rebounded, and interest rate spreads narrowed, with the ECB continuing interest rate cuts [7]. Asset Management Developments - eQ Asset Management raised over EUR 200 million for private equity and residential funds during the review period, including USD 178 million for the eQ PE XVII US fund [10][11]. - The assets managed by eQ Asset Management grew to EUR 13.5 billion, up from EUR 13.4 billion at the end of 2024 [4][5]. Future Outlook - The real estate market remains challenging, with low liquidity and unchanged yield requirements despite falling interest rates [18][19]. - The company anticipates a potential increase in Private Equity allocations from Finnish asset management clients in the coming years, expecting an increase in Private Equity fees in 2025 [20][21].

Press release August 4, 2025, at 10:00 AM The Special Investment Fund eQ Community Properties has completed a transaction with Mutual Pension Insurance Company Varma regarding a school property located in Niittykumpu, Espoo. At the same time, on June 30, 2025, Varma has made an investment in the eQ Community Properties Fund. The main tenant of the property is the City of Espoo, and the premises are used by Niittykumpu School. Jennifer Eloheimo, Head of Real Estate Investments at eQ, comments: "Varma has lon ...

Financial Performance - The Group's net revenue for Q1 2025 was EUR 14.0 million, a decrease of 15% from EUR 16.5 million in Q1 2024 [2][3] - Operating profit fell by 34% to EUR 5.8 million compared to EUR 8.8 million in the previous year [2][3] - Profit for the period decreased by 35% to EUR 4.6 million from EUR 7.0 million [2][3] - Earnings per share dropped by 36% to EUR 0.11 from EUR 0.17 [2][3] Segment Performance - Asset Management segment's net revenue decreased by 5% to EUR 14.4 million, with operating profit down 11% to EUR 7.9 million [2][3][8] - Corporate Finance segment reported net revenue of EUR 0.1 million, a significant drop from EUR 0.8 million, with an operating loss of EUR -0.8 million [2][3][13] - Investments segment experienced an operating loss of EUR -0.6 million, a decline from a profit of EUR 0.2 million in the previous year [2][3][15] Market Conditions - The early part of 2025 saw turmoil in global capital markets, with US stock markets remaining flat and European stock prices rising by approximately 15% [5] - The tariff war and geopolitical challenges have created significant uncertainty in capital markets, negatively impacting economic development [6] - Interest rates have fallen significantly, particularly in Europe, which may support real estate and equity investments [6] Asset Management Developments - eQ Asset Management's assets under management grew to EUR 13.6 billion, up from EUR 13.4 billion at the end of 2024 [3][4] - The company raised USD 143 million for its private equity fund, eQ PE XVII US, with total fund size increasing to USD 168 million after the review period [9] - The market for open-ended real estate funds remains low, with postponed redemptions expected to be paid by the end of April 2025 [10][16] Future Outlook - The real estate market is expected to improve in 2025 compared to 2024, contingent on falling interest rates and economic recovery [16] - Private equity fees are anticipated to increase in 2025, as Finnish asset management clients are expected to raise their allocations [18] - The company aims to enhance client service and growth through organizational restructuring and key appointments [11]