Hepsor AS Reveals Key Developments in Q1 Financial Report

Correction of the Hepsor AS Quarterly Financial Report

Hepsor AS has released a consolidated unaudited interim report for the first quarter, clarifying previously misstated operating profits. This correction, initially highlighted in a report published on April 30, outlines the accurate financial status of the company.

The first quarter of 2025 saw Hepsor’s consolidated sales revenue grow impressively to €8.2 million, a significant increase from €2.3 million in the same quarter last year. This uptick reflects a robust performance in the real estate market.

However, the Group also reported a net loss of €0.1 million for Q1 2025, compared to a net loss of €1.0 million in Q1 2024. Even though the loss attributable to the owners of the parent decreased to €0.2 million from €0.9 million last year, it signals ongoing challenges within the sector.

Dividend Distribution Proposal

In response to improving financial conditions, the Management Board, in collaboration with the Supervisory Board, has proposed a distribution of €1.0 million in dividends, translating to €0.26 per share. This initiative, based on the share price as of March 31, indicates a promising dividend yield of 6.9%, showcasing confidence in future profitability.

Active Development Projects

Hepsor remains committed to ongoing development projects that are crucial to driving growth. In Q1 2025, ongoing construction continued to attract customer interest, underscoring the strength of Hepsor's development portfolio. A highlight includes the completion of the Annenhof M?jas project, where 60% of the apartments have already been sold.

In total, the company has successfully handed over 42 homes to customers, a notable rise from the 12 homes delivered in the same quarter last year. Of these, 26 homes were delivered in Tallinn, while 16 were in Riga, marking a significant milestone in regional housing development.

The first phase of the revitalization project at the former Baltic Cotton Spinning and Weaving Factory at Manufaktuuri 5 is also underway, with plans to build 150 new homes. This project reflects Hepsor’s dedication to repurposing historic sites into modern living spaces.

Commercial Ventures and New Developments

Hepsor’s expansion into commercial properties is evident with the StokOfiss 34 project at Ulbrokas 34 in Riga. This multifunctional commercial space comprises 8,740 m² and has already secured lease agreements for nearly half of the total rental area. The completion of this project is anticipated in the third quarter of 2025, marking a strategic addition to Hepsor's portfolio.

Substantial leasing activity is also reported at the P113 Health Centre office building, where 82% of the space had been leased by the end of March 2025, showcasing the demand for commercial real estate within the region.

Strategic Ventures and Future Outlook

Hepsor has signed a shareholders' agreement whereby a 50% stake in Hepsor SOF OÜ will be sold to the EfTEN Special Opportunities Fund. This agreement involves the acquisition of five properties in Lasnamäe at a value of €9.0 million, from which Hepsor expects to realize approximately €3.7 million in profits over the next few quarters.

In an ambitious move, Hepsor plans to commence construction on four new residential projects in 2025. Notably, the next development at Manufaktuuri 12 aims to add 49 new homes, which would be the fourth project in the vicinity. This is set to kick off in the latter half of 2025.

Expansion efforts also extend to Riga, where a total of 227 new homes are scheduled for construction. The developments on Eiženijas iela, Zala Jugla, and Dzelzavas 74c promise to enhance the residential options available in the area and are reflective of the growing demand for housing.

With plans to embark on the first phase of the Veidema Quarter development, Hepsor remains steadfast in enhancing its footprint within the real estate sector, aiming to bolster both residential and commercial offerings.

The complete consolidated unaudited interim report is available on Hepsor's website for those interested in a detailed overview of the company's financial performance and future plans.

Frequently Asked Questions

What is the corrected operating profit for Hepsor AS for Q1 2025?

The operating profit for Q1 2025 was misstated but has been clarified in their financial report.

What is the proposed dividend for shareholders?

The Management Board proposes a dividend distribution of €1.0 million, equating to €0.26 per share.

How many homes were delivered in Q1 2025?

Hepsor delivered 42 homes to customers in the first quarter of 2025.

What is the status of the StokOfiss 34 project?

StokOfiss 34 is set for completion in the third quarter of 2025, with nearly half of the rental area already leased.

What new developments are planned for 2025?

Hepsor plans to start four new residential projects in 2025, including developments in Tallinn and Riga.

About The Author

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