Hepsor AS's 2024 Annual Report Overview
The Management Board of Hepsor AS has meticulously prepared the audited annual report for 2024, which confirms that the audited financial results align with previously published unaudited figures, presenting a consistent picture for stakeholders.
Financial Highlights
In the 2024 financial year, Hepsor recorded a consolidated sales revenue of 38.4 million euros, a decrease from last year's 41.1 million euros. This decline in revenue reflects the challenges faced in the market.
The Group reported a net profit of 2.1 million euros for 2024, down from 3.5 million euros in 2023. Notably, the net profit allocated to the owners of the parent company fell to 0.4 million euros from 1.2 million euros the previous year.
The Management Board has put forth a proposal, in coordination with the Supervisory Board, to distribute dividends amounting to 1,002 thousand euros, translating to EUR 0.26 per share to shareholders in 2025. Given the share price as of the end of the year, this translates to an attractive dividend yield of 6.2%.
Development Projects Underway
In 2024, Hepsor successfully delivered 194 homes to its customers, predominantly in Tallinn and Riga, with 165 homes in Tallinn and 29 in Riga. This effort enhances the Group's reputation for meeting client expectations and contributing to local housing needs.
In Riga, the construction of the StokOfiss 34 commercial building commenced, alongside ongoing work on the Annenhof Maja residential project, which includes 40 apartments. This project is anticipated to be completed in early 2025.
Meanwhile, Hepsor has initiated the largest development project in its history within Tallinn at the site of the former Baltic Cotton Spinning and Weaving Factory. This ambitious project at Manufaktuuri 5 aims to develop and sell a main building featuring 150 new apartments in stages.
In commercial real estate, the affiliated company Hepsor P113 OÜ progressed in signing new rental contracts for the P113 Tervisemaja building, achieving a lease coverage of 77% by the year's end. As of recent reviews, this figure has increased to 84%.
As part of strategic planning, the Group sold the Lembitu 4 property, intended for hotel construction, to finance further developmental plans and decrease interest expenses across the Group.
New Initiatives in Tallinn and Riga
In September, Hepsor secured a new site in Tallinn at Võistluse 7 intended for a sLender-type apartment building. Designed by researchers and architects from the Estonian Academy of Arts, the structure is inspired by early 20th-century wooden houses, emphasizing both environmental sustainability and green technology.
On July 18, a subsidiary, Hepsor E18 SIA, acquired a property on Eiženijas iela 18, where plans are in place for two new buildings comprising a total of 54 apartments.
In December, Hepsor Latvia OÜ signed an option agreement to acquire a 50% share in a real estate development firm, with intentions to construct 103 new homes at Dzelzavas 74c, in Riga.
Global Expansion: Hepsor in Canada
Hepsor is making significant strides in the Canadian market with investments in five development projects in Toronto. These initiatives focus on formulating detailed plans that could lead to building rights for approximately 3,000 rental apartments in Canada’s largest city.
In 2024, Hepsor executed three additional investments in Canada aimed at capitalizing on the booming real estate market:
- The acquisition of seven properties located at 17-29 Glenavy Avenue.
- Outreach projects consisting of 11 properties in High Park, situated in downtown Toronto.
- Acquisition of 17 properties on Brownville Avenue.
Vision for Future Growth
Looking ahead to 2025, Hepsor plans to embark on five new development projects across its operational territories. The focus will be primarily on Latvia, where they aim to kick-start four projects resulting in the construction and sale of 227 new homes.
Hepsor is also prepared to expand further into the commercial property sector with plans for a stock-office development project at Ganibu Dambis 17a in the Veidema Quarter.
Moreover, continuing the ambitious work at the Manufaktuuri Quarter, the Group is set to develop and sell 49 new homes at Manufaktuuri 12.
Despite facing challenges such as a declining interest rate environment, Hepsor maintains a cautiously optimistic outlook for the future, informed that real estate development is a long-term process that necessitates careful risk and opportunity assessments across market cycles.
Consolidated Statement of Financial Position Summary
The consolidated asset statement indicates total assets amounting to 88,813 thousand euros, compared to 91,001 thousand euros in 2023. The liabilities stand at 66,803 thousand euros, with equity totaling 22,010 thousand euros as of December 31, 2024.
Management Contact Information
For further inquiries, Henry Laks, a dedicated member of the Management Board, can be contacted at +372 5693 9114 or via email.
For more details regarding Hepsor AS, a prominent developer of residential and commercial real estate operating in Estonia, Latvia, and Canada, please visit www.hepsor.ee.
Frequently Asked Questions
What were the main financial results for Hepsor AS in 2024?
Hepsor AS reported a consolidated sales revenue of 38.4 million euros and a net profit of 2.1 million euros in 2024.
How many homes did Hepsor deliver in 2024?
In 2024, Hepsor delivered a total of 194 homes to customers in Tallinn and Riga.
What future projects does Hepsor have planned?
Hepsor plans to initiate construction and sale of up to five new development projects in 2025, with a focus on residential properties.
What is the dividend proposal for 2025?
The Management Board proposed dividends of 1,002 thousand euros, translating to EUR 0.26 per share, with a resulting dividend yield of 6.2%.
Where can I find more information about Hepsor’s developments?
Further information can be obtained through Hepsor AS's official website or by contacting the management directly.
