Pro Kapital's Recent Financial Growth and Future Developments
Pro Kapital's Consolidated Interim Report Highlights
The Group has released its Consolidated Interim Report for the second quarter and the first half of 2025. A recent correction revealed that the company recorded a net profit of EUR 4.3 million for the second quarter, rather than the previously reported net loss. This correction shines a light on Pro Kapital's robust financial recovery and resilience in the real estate sector.
Real Estate Development Progress
Tallinn Projects
By mid-2025, the Kalaranna development project concluded its final phase, encompassing four buildings with a total of 146 units. Landscaping and minor customer modifications are presently underway. Out of the units, 76 have already been sold, translating to a 60.7% sales rate. This development highlights Pro Kapital's successful entry into the competitive Tallinn market.
In Kristiine City, Pro Kapital is diligently working on obtaining building permits for four new projects. These projects include:
- "Dunte" – awaiting a building permit issuance.
- Sammu 2/4 / Sõjakooli 15 – application submitted in December 2024.
- Marsi 1 / Sõjakooli 13 – application submitted in February 2025.
- Sammu 3 / Sõjakooli 17 – currently in the design phase with plans for a residential and commercial mix. The revised project is expected to be submitted by July 2025.
These upcoming initiatives promise to add approximately 35,000 square meters of Gross Building Area, featuring around 350 residential units in a thriving urban setting.
Ongoing Developments in Riga
Following the complete sales in the River Breeze Residence by the end of 2024, Pro Kapital is gearing up for the next phase in Kliversala with the Blue Marine project, comprising 96 residential units. Preparations have already begun, with construction anticipated to initiate soon, and high interest from prospective buyers has been noted.
Additionally, the company has established two subsidiaries to increase operational efficiency in Latvia: SIA Pro Kapital Engineering for project management and SIA BM Kliversala to spearhead the Blue Marine development.
Advancements in Vilnius
In Vilnius, the company continues to progress with the final stage of the Šaltini? Namai Attico city villas and a commercial building. Notably, almost 40% of the villas are already sold, and the commercial building has achieved a 10% sales rate, reflecting the upward trend in Vilnius' real estate market.
Furthermore, Pro Kapital's investment on Naugarduko Street involves transforming a former school into an upscale residential complex, expected to offer approximately 50 luxury apartments by late 2025.
Hotel Operations and Performance Recovery
In terms of hotel operations, while the second quarter's performance was initially below expectations, the company anticipates recovery in the coming months. This downturn was influenced by the temporary closure of the Thermal Baths, impacting occupancy rates. However, Pro Kapital remains optimistic about maintaining the positive performance trends established in previous years.
Company Stake in Italian Market
Pro Kapital continues to strengthen its presence in Italy through its majority stake in Preatoni Nuda Proprietà and its subsidiary Preatoni Intermediazioni Immobiliari. Amidst the market slowdown due to rising interest rates, there are budding signs of recovery, with a full market normalization anticipated by the end of 2025.
Overview of Financial Performance
Pro Kapital's overall revenue for the first half of 2025 reached EUR 28.5 million, significantly up from EUR 6.9 million in the same period of 2024. The company recorded revenues of EUR 16.1 million in the second quarter alone, compared to EUR 3.9 million the previous year.
Gross profit for the six months rose to EUR 10.2 million, showcasing a substantial increase from EUR 2.4 million in 2024. The net result also painted a promising picture, with a profit of EUR 6.2 million for the half-year compared to a loss of EUR 3.0 million a year prior.
Additionally, cash generated from operations surged to EUR 8.5 million from EUR 4.5 million in the same timeframe the previous year, solidifying Pro Kapital's operational efficiency.
Conclusion: A Bright Future Ahead
In summary, the first half of 2025 marked a period of significant stabilization and growth for Pro Kapital across its markets. With continued developments in Tallinn, Riga’s Blue Marine project preparations, and the ongoing transformation in Vilnius, the company is strategically positioned for future success. Their disciplined approach to execution and commitment to value creation will enable them to leverage the positive macroeconomic sentiments moving forward.
Contact: Ann-Kristin Kuusik, CFO
Phone: +372 614 4920
Email: prokapital@prokapital.ee
Frequently Asked Questions
What is Pro Kapital's most recent profit report?
Pro Kapital reported a net profit of EUR 4.3 million for the second quarter of 2025.
How many units have been completed and sold in the Kalaranna project?
In the Kalaranna project, 76 units have been handed over to buyers, achieving a sales rate of 60.7%.
What upcoming projects are planned in Kristiine City?
Pro Kapital is advancing with multiple projects in Kristiine City, including the Dunte project and the Sammu areas, all in various stages of permitting and design.
How did Pro Kapital's revenues change in the first half of 2025?
The company reported revenues of EUR 28.5 million in the first half of 2025, a significant increase from EUR 6.9 million in 2024.
What is the outlook for the hotel operations?
While the hotel sector faced challenges, Pro Kapital expects recovery by September-October, leveraging their historical performance trends.
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