Overview of Hepsor AS Financial Performance
Hepsor AS has demonstrated remarkable growth in its consolidated revenue for Q2 2025, achieving 13.9 million euros compared to 5.2 million euros in Q2 2024. Furthermore, the total revenue for the first half of the reporting year reached 22.1 million euros, surging from just 7.4 million euros in the corresponding period last year.
The company's net profit reached 0.4 million euros in the second quarter, a significant recovery from a net loss of 0.6 million euros in Q2 2024. This includes a net profit of 0.02 million euros attribuable to the owners of the parent company, again bouncing back from losses last year. Throughout the first half of the year, the group realized a net profit of 0.3 million euros, an impressive turnaround compared to a net loss of 1.5 million euros in H1 2024.
Property Developments and Strategic Moves
In the second quarter, Hepsor Fortuuna OÜ, a subsidiary of Hepsor AS, successfully sold properties located at Paevälja 5, 7, and 9 to the Group's 50% joint venture, Hepsor SOF OÜ, for a total transaction value of 2.7 million euros (excluding VAT). This sale will generate a profit of 0.8 million euros for the group, with 0.4 million euros recognized in the second quarter. The remaining profit is to be realized upon completion of the development project.
Residential Development Projects
As of the end of June 2025, Hepsor boasts a portfolio of 9 residential developments for sale, 5 of which are completed while 4 are under construction or set to commence in 2025. To date, 355 new homes and 453 m² of commercial space have been constructed. Impressively, 81% of the homes – equating to a total of 288 units – have already been sold through real right contracts or reservation agreements. Despite the fluctuating economic environment, the demand for Hepsor's property developments remains robust, underscoring the trust that consumers place in the company's offerings.
In the first half of 2025, Hepsor successfully handed over 102 homes to customers, a significant increase from 46 homes in H1 2024. Of these, 60 homes were transferred in the second quarter as compared to 34 homes during the same time frame last year.
Current and Future Projects
In Tallinn, construction preparations have kicked off for the Manufaktuuri Factory development project at Manufaktuuri 5, where 152 homes are envisioned. The completion of this phase is aimed for autumn 2027.
In Riga, construction has commenced on the 360° Dzelzavas Residences project, featuring a building with 103 apartments located at Dzelzavas iela 74c, with completion expected in Q4 of 2026.
Commercial Real Estate Developments
Hepsor has ventured into the commercial real estate sector with the development of the StokOfiss U34, a multifunctional commercial office space situated at Ulbrokas 34 in Riga. Spanning an impressive leasable area of 8,740 m², the building has 65% of its total area covered by lease agreements as of June 30, 2025. Hepsor anticipates acquiring usage authorization by the end of July 2025, which will allow for tenant occupancy.
Additionally, leasing agreements continue to be established for the P113 Health Center, owned by Hepsor P113 OÜ, currently classified as an associate, reflecting an impressive 98% lease coverage of its area.
Guiding Thoughts on Future Prospects
Hepsor AS looks ahead to continued growth within its development portfolio. Currently, the company is in the process of acquiring new property development at Starta iela 17 in Riga, where plans are in motion to build three 14-storey apartment buildings totaling about 250 apartments and covering an area of 14,500 m². Construction is scheduled to start by the end of 2026, with a substantial investment of close to 40 million euros earmarked for this project, marking one of Hepsor's most significant ventures in the Latvian real estate market.
In Tallinn, aside from the ongoing efforts in the Manufaktuuri Quarter, Hepsor is exploring significant developmental opportunities in Lasnamäe, particularly in the areas of Paevälja, Narva mnt, and Alvari streets. Collaborative efforts are underway with the EfTEN Special Opportunities Fund, through the joint venture Hepsor SOF OÜ.
In July 2025, Hepsor N450 OÜ, another subsidiary, made a noteworthy sale of properties at Narva mnt 150 and 150a to Hepsor SOF OÜ, for a total transaction value of 6.3 million euros, leading to a projected profit of 2.8 million euros from the sale, half of which is expected to be realized in the third quarter of the current year.
Management Changes and Adaptations
Hepsor AS is set to experience significant shifts within its leadership team going into August. Martti Krass, the former Country Manager of Latvia who has played an instrumental role in the company's growth, will assume a position on the Management Board of Hepsor AS. Gints Vanders will take over as Country Manager in Latvia, bringing valuable experience from his previous role as a member of the Management Board of Hepsor SIA.
Furthermore, Henri Laks will be inducted into the Supervisory Board of Hepsor AS in August, providing strategic oversight aimed at enhancing the company’s development initiatives at a new level.
The detailed, unaudited consolidated interim report for Q2 and the initial six months of 2025 can be accessed on Hepsor’s official website.
Frequently Asked Questions
What were Hepsor AS's revenue figures for Q2 2025?
Hepsor AS reported a revenue of 13.9 million euros for Q2 2025, a significant increase from the 5.2 million euros reported in Q2 2024.
How did Hepsor AS perform in terms of net profit in Q2 2025?
The company achieved a net profit of 0.4 million euros for the second quarter of 2025, contrasting with a net loss of 0.6 million euros for the same period last year.
What major projects is Hepsor currently undertaking?
Hepsor is actively working on several significant projects, including the Manufaktuuri Factory development in Tallinn and the 360° Dzelzavas Residences in Riga, among others.
What are the future plans for Hepsor AS?
The company aims to continue expanding its property development portfolio, including new acquisitions and ongoing projects in both Latvia and Estonia.
How can I contact a representative from Hepsor AS?
For inquiries, you can contact Henri Laks, a Member of the Management Board, via phone at +372 5693 9114 or through email at henri@hepsor.ee.
