Management Report Highlights
Real Estate Development Overview
Tallinn Developments
As of the second quarter of 2025, Pro Kapital Holdings has completed the construction of the final phase of the Kalaranna development. This phase includes four buildings consisting of 146 residential units, with only minor landscaping and client modifications left to finish. A notable 76 apartments have already been sold, marking a sales rate of 60.7%.
In Kristiine City, our design and building permit process continues for four exciting projects currently under review by the Tallinn City Planning Department:
- Dunte: We are still waiting for the building permit to be issued.
- Sammu 2/4 / Sõjakooli 15: The building permit application was submitted in late December last year.
- Marsi 1 / Sõjakooli 13: This application went in earlier this year, in February 2025.
- Sammu 3 / Sõjakooli 17: Currently in the design phase, preparations are being made to submit for a new concept that allows for 95% residential use and 5% commercial. The intention is to submit these plans by July 2025.
These projects collectively aim to add approximately 35,000 square meters of gross building area, introducing around 350 units primarily designed for residential purposes to our expanding portfolio.
Progress in Uus-Kindrali Project
The construction of the White Building, which will house 91 residential units at Talli Street 3 / Sammu Street 8, has seen significant progress in Q2 2025. Currently, we have initiated the installation of final finishes such as tiles and paint, achieving a sellout rate of 62.4% and anticipating completion in November–December 2025.
Additionally, excavation and foundational work have commenced for a new seven-story residential building with 90 units located adjacent to the White Building at Sammu Street 10 / Seebi Street 24a. Progress here stands at 12.2% in sales, with underground work nearing completion and plans to start above-ground construction soon. We expect this building to be ready by late 2026.
Recent Developments in Riga
After the successful sales in the River Breeze Residence project wrapped up in late 2024, we have turned our focus towards the Blue Marine project in Kliversala which will feature 96 residential units. The engineering team is in full swing aiding in construction preparations that began in July 2025, with considerable interest from potential buyers already noted.
To advance this venture, two new subsidiaries were formed in June, SIA Pro Kapital Engineering, which manages construction projects in Latvia and SIA BM Kliversala, initiated explicitly for the development of the Blue Marine project.
Ongoing Projects in Vilnius
Construction marches on for the last stage of Šaltini? Namai Attico, including city villas and a commercial structure, which are currently seeing nearly 40% sold off in villas and just over 10% in the commercial sector, with record prices noted for real estate in Vilnius. We are on track to achieve significant completion by the year's end.
In another endeavor on Naugarduko Street, we are converting a historic school into a luxurious residential complex boasting around 50 high-end apartments, all pending building permit approval expected in the upcoming quarter.
Hotel Operations Update
Our hotel division experienced slight performance dips in Q2, attributed to the temporary closure of Thermal Baths for maintenance work, which in turn impacted occupancy rates. However, as we look towards September and October, recovery is anticipated, and we are confident in maintaining the positive performance trends observed in recent years.
Focus on Other Operations
The Group holds a significant stake in Preatoni Nuda Proprietà (PNP) alongside its subsidiary Preatoni Intermediazioni Immobiliari (PII), focusing their efforts on enhancing their footprint within the Italian real estate market, specifically through bare ownership transactions.
Despite a slow market landscape brought by rising interest rates in 2024, we are witnessing a steady rebound, with hopes of full market normalization by the conclusion of 2025.
Financial Overview
In the first half of 2025, Pro Kapital Holdings reported a total revenue of 28.5 million euros, a substantial increase from 6.9 million euros during the same period last year. The second quarter contributed 16.1 million euros compared to 3.9 million euros from last year.
A key contributing factor to this growth is the successful transfer of legal titles for various completed apartments within the Kalaranna District, following the initial sales that kicked off in late 2024. Essentially, revenues fluctuate based on the construction cycle and the completion phase of our housing projects.
Our gross profit for the first half rose to 10.2 million euros from 2.4 million euros in 2024. Specifically, Q2 gross profit was 6.0 million euros versus 1.5 million in the previous year. Operating results turned a profit of 7.5 million euros compared to a loss of 0.9 million euros from last year, indicating rigorous financial discipline and effective management strategies.
As of June 30, 2025, our net result reflected a profit of 6.2 million euros, a mighty turnaround from a loss of 3.0 million euros seen during the same period the previous year. Cash generated from operations for the first half was notable at 8.5 million euros, compared to a 4.5 million euro drain the year before.
Conclusion and Future Outlook
Throughout the first half of 2025, we have observed stabilization in our markets, notwithstanding delays in bureaucratic processes. Progress continues in Tallinn with ongoing construction efforts and an expanding development pipeline in Kristiine City. Riga is successfully gearing up for the Blue Marine project, leveraging the effective construction framework we've rolled out in Estonia.
In Vilnius, we are advancing sales initiatives with impressive pricing in our flagship projects and preparing for high-end developments on Naugarduko Street. Our commitment to discipline in execution, strategic endeavors, and value addition has positioned us to capture the improving economic landscape and achieve robust results as we move deeper into the year.
Edoardo Preatoni
CEO
Frequently Asked Questions
What are the key highlights of the interim report?
The report highlights significant progress in real estate projects across Tallinn, Riga, and Vilnius with impressive revenue growth in the first half of 2025.
How is Pro Kapital Holdings adapting to market changes?
The company is focusing on disciplined execution and strategic development initiatives to navigate market fluctuations effectively.
What are the projections for future developments?
Future developments are expected to unfold as planned, with completion of key projects in 2025, enhancing the company’s position in the residential market.
What overall financial performance has been reported?
Pro Kapital reported a significant increase in revenue and profits in the first half of 2025 compared to the previous year, with a strong focus on continued growth.
Which new projects are in the pipeline for 2025 and beyond?
In addition to ongoing projects, new ventures in the Blue Marine project and transformations in Vilnius signal a proactive approach towards growth and innovation.
