Pro Kapital's Revised Financial Report: Key Insights for Investors
Pro Kapital's Revised Consolidated Interim Report Released
The Group has issued a revised version of its Consolidated Interim Report for the second quarter of the fiscal year 2025. This report rectifies an earlier announcement that unfortunately misstated the quarterly outcome, initially indicating a net loss, whereas the actual result reflects a net profit of EUR 4.3 million. This clarification not only underscores the Group's financial stability but also emphasizes their commitment to transparency.
Management Overview: Growth in Real Estate Development
In the realm of real estate development, Pro Kapital has made substantial strides. The Kalaranna development, featuring four buildings with a total of 146 units, has reached completion, with minor landscaping and client modifications yet to be finished. By the report's publication, 76 apartments had been sold, which brings the overall sales rate to an impressive 60.7%.
Expansion Projects in Kristiine City
The design and building permit process is ongoing for four significant projects in Kristiine City, where Pro Kapital has submitted applications to the Tallinn City Planning Department:
- Dunte: Awaiting the issuance of the building permit.
- Sammu 2/4 / Sõjakooli 15: Building permit application was submitted in late 2024.
- Marsi 1 / Sõjakooli 13: Application submitted in early 2025.
- Sammu 3 / Sõjakooli 17: Currently in the design phase with plans to amend the use towards residential purposes.
Together, these projects will contribute approximately 35,000 square meters of gross building area, with around 350 units primarily focused on residential development.
Advancements in Uus-Kindrali Project
Following progress in Kristiine City, construction on the White Building within the Uus-Kindrali project continues smoothly, with 91 residential units nearing completion. Installation of final finishes is underway, and the expected sellout rate stands at 62.4%, with operational completion anticipated by late 2025.
Riga's Development: New Horizons with Blue Marine Project
In Riga, Pro Kapital has concluded its sales in the River Breeze Residence. They are now gearing up for the next phase, known as the Blue Marine project, consisting of 96 residential units. The engineering team has been assembled, and preparations for construction commenced in mid-2025, along with notable interest from potential buyers. This project marks an exciting step forward for Pro Kapital.
Vilnius: Luxury Developments and Market Success
The second quarter saw ongoing construction for the Šaltini? Namai Attico, featuring city villas and commercial buildings, achieving nearly 40% sellout for the villas and over 10% for the commercial space. Pro Kapital aims for substantial completion by the end of 2025.
Additionally, a transformative project is underway on Naugarduko Street, converting a former school into a luxurious residential complex, with around 50 high-end apartments and spectacular views of Old Town. Approval for the building permit is anticipated in the near future.
Performance Insights from Hotel Operations
Despite hotel operations showing slightly lower performance during the second quarter compared to budget, there is optimism about recovering expected results by the following fall months. The tighter performance was attributed to the seasonal closure of the Thermal Baths, impacting occupancy rates directly. Looking ahead, the management remains hopeful for continued positive trends in hotel performance.
Key Financial Highlights
In the first half of 2025, Pro Kapital reported total revenues of EUR 28.5 million, an impressive increase from EUR 6.9 million in the same period last year. The second quarter alone contributed EUR 16.1 million, significantly exceeding past figures. Furthermore, the gross profit soared to EUR 10.2 million compared to EUR 2.4 million in the previous year.
The net result for the first half of 2025 demonstrated a profit of EUR 6.2 million, contrasting sharply with a loss of EUR 3 million in the prior year. The operating result has also shifted positively, registering a profit of EUR 7.5 million against an earlier loss. Cash generated from operational activities nearly doubled, reinforcing the Group's healthy financial position.
Conclusion: Strategic Positioning for Future Growth
As Pro Kapital expands its geographical footprint and enhances its development pipeline, they remain dedicated to disciplined execution and strategic development. The positive macroeconomic landscape positions the Group well for sustained growth moving forward.
Edoardo Preatoni
CEO
Frequently Asked Questions
What is the significance of the corrected interim report?
The corrected report highlights Pro Kapital's shift from a reported loss to a profit, showcasing its financial stability and transparency in operations.
How has Pro Kapital performed in real estate development recently?
Pro Kapital has seen strong sales and progress in several key projects, particularly in Tallinn and Riga, contributing to significant revenue growth.
What are the key financial metrics for the first half of 2025?
The Group reported revenues of EUR 28.5 million, gross profits of EUR 10.2 million, and a net profit of EUR 6.2 million for the first half of the year.
What is the outlook for hotel operations in the coming months?
Management is optimistic about recovering from recent performance shortfalls due to seasonal impacts, expecting a rebound by September-October.
What strategic initiatives is Pro Kapital focusing on for future growth?
The Group is concentrating on expanding its development pipeline and enhancing its strength in core geographical markets, geared towards capitalizing on improving market conditions.
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