Financial Results Overview
Hepsor AS has released its consolidated revenue figures, revealing that for the third quarter of 2025, they achieved a total of 8.8 million euros, in contrast to 20.4 million euros in Q3 of 2024. When looking at the first nine months of 2025, the revenue stood at 30.9 million euros, which is an increase from 27.9 million euros over the same period last year. The transition in revenue is indicative of the ongoing developments and the market's response to their offerings.
Net Profit Insights
In the area of net profit, the Group reported 1.2 million euros for the third quarter. This is a reduction from 2.7 million euros noted in Q3 2024. Specifically, the net profit attributable to the parent company's owners was 1.1 million euros compared to 1.4 million euros during the same time a year earlier. Over the nine-month period of 2025, net profit recorded was 1.5 million euros, which is an improvement from the 1.2 million euros in 2024. This includes a noteworthy net profit attributable to the owners of 0.9 million euros, reversing a net loss of 0.2 million euros experienced in 2024.
Impact of Property Sales
The financial outcomes from this reporting period were remarkably influenced by the sale of certain properties. Key transactions included properties located at Paevälja 5, 7, and 9, as well as Narva mnt 150 and 150a, which were sold to the Hepsor SOF OÜ joint venture—of which the Group holds a 50% interest. The aggregate value of these transactions amounted to 9 million euros, excluding VAT, leading to a profit of around 1.8 million euros recognized within the second and third quarters. Remaining profits from other property sales will be accounted for as the development project nears its final stages and aligns with the pace of apartment sales.
Future Development Plans
In October, Hepsor announced that they are collaborating with AS LHV Pank to establish a bond program, with plans to list these bonds on the Main List of the Nasdaq Tallinn Stock Exchange. The detailed terms, including the approval of the prospectus and the specifics surrounding the bond offering, will be communicated at an appropriate time, allowing investors to keep a close watch on the developments.
Dividend Distribution
The recent General Meeting of Shareholders led to a decision to distribute dividends from profits accumulated in prior years, amounting to 0.26 euros per share, totaling around 1 million euros. These dividends were distributed to shareholders, with an income tax expense related to this payment hitting 0.3 million euros.
Residential Development Projects
During the third quarter of 2025, Hepsor expanded its development portfolio with a new residential project in Riga at Starta 17. This major project aims to construct 255 new homes in a phased manner. By September, the Group has a total of 10 active residential development projects, with five completed and five either in construction or set to commence later in the year. Of the 355 new homes included in these completed projects, 87% have already been sold, reflecting the effective engagement and trust from the market.
Commercial Real Estate Update
Hepsor initiated construction of StokOfiss U34, a multifunctional commercial structure located on Ulbrokas 34 in Riga, which encompasses a leasable space of 8,740 m². By July 2025, a partial occupancy permit was obtained, and as of late September, approximately 70% of the total leasable area was under lease agreements.
International Ventures: Expansion in Canada
The Group's operations in Canada are primarily focused on enhancing land-use planning for its projects, which brings increased building rights. By the end of September 2025, Hepsor has invested in five distinct developmental projects. A significant movement occurred in August when the Toronto City Council approved building rights for Hepsor's first project on Weston Road, which includes plans for two residential towers set to rise 35 and 39 stories high.
Looking Ahead
Looking towards the fourth quarter of 2025, Hepsor is set to commence construction on two major projects in Riga. The projects include a stock-office development at Ganibu dambis 17a and the Kirsu Kalna Majas residential project at Eiženijas iela 18, where pre-sales have already begun. Construction is scheduled for two apartment buildings, offering a total of 54 homes.
The first half of 2026 will see the initiation of four new development projects, including both residential and commercial ventures in Estonia and Latvia, promising continued growth. Hepsor’s commitment to innovation remains strong, as they will introduce their first residential building featuring a timber frame structure, ensuring sustainability alongside functionality.
Investor Engagement Opportunities
Hepsor is excited to announce an upcoming investor meeting scheduled for the autumn-winter session, taking place on specified dates in Estonia and Latvia. The Group’s CEO, Martti Krass, will provide a comprehensive overview of financial results, development progress, and future investments, welcoming all interested parties to attend.
For full details on Hepsor’s Q3 interim report and ongoing activities, investors can reach out through the provided contact information.
Frequently Asked Questions
1. What were the total revenues for Hepsor in Q3 2025?
The total revenues for Hepsor in Q3 2025 were 8.8 million euros.
2. How many homes were completed in the first nine months of 2025?
Hepsor completed 119 homes during the first nine months of 2025.
3. What new projects are being launched by Hepsor?
Hepsor is launching various new projects, including residential developments and a multifunctional commercial building in Riga.
4. Where is Hepsor expanding its business in international markets?
Hepsor is expanding its operations in Canada, focusing on securing building rights for upcoming projects.
5. When will the next investor meeting take place?
The next investor meeting is scheduled for November, specifically on the 13th in Estonia and the 14th in Latvia.
