Pro Kapital's Solid Q1 2025 Report: Positive Trends Ahead
Management Overview and Development Initiatives
The management of Pro Kapital presents its reports on recent achievements and developments within the organization during the first quarter of 2025. The real estate sector has demonstrated resilience and growth potential amid fluctuating market conditions.
Real Estate Development Insights
In the latest quarter, significant advancements were made in the Kalaranna development. The final phase, which includes four buildings with a total of 146 residential units, is approaching substantial completion. As of now, 68 units have been sold, and the overall sales rate has almost reached 60%. This positive momentum reflects the increasing demand for residential properties in sought-after areas.
In Kristiine City, Pro Kapital is progressing with plans for four different projects, demonstrating a commitment to expanding its portfolio:
Project Overview
- "Dunte" is currently awaiting the issuance of its building permit.
- The Sammu 2/4 / Sõjakooli 15 project has a permit application pending since December 2024.
- Work for the Marsi 1 / Sõjakooli 13 project is underway, with a building permit application submitted this February.
- For Sammu 3 / Sõjakooli 17, the design phase is in progress, and a concept is being developed to shift the usage to a predominantly residential format.
These projects will contribute approximately 35,000 square meters of gross building area, comprising 350 new residential units, enhancing the captivating Kristiine City neighborhood.
Major Project Updates
Pro Kapital is also progressing well with the White Building project in Kristiine City, which consists of 91 residential units. Progress has been steady, with internal work well underway and a sellout rate of 57% expected to be completed by late 2025. Additionally, excavation and foundation works have commenced for another residential building featuring 90 units nearby, with initial presales resulting in 11% of the units sold.
Riga and Vilnius Developments
In Riga, the firm is preparing for the next development phase at Kliversala, the Blue Marine project which consists of 101 residential units. With a dedicated construction team now in place, groundbreaking is slated for July. The Group is set to gain traction in pre-sales as interest from prospective buyers grows.
Meanwhile, in Vilnius, work continues on the final stage of Šaltini? Namai Attico, which encompasses city villas and commercial spaces. The project is seeing rising demand and pricing trends, with substantial completion expected by the year-end.
Performance in Hotel Operations
During the first quarter, hotel operations experienced a slight downturn compared to the previous year, particularly in February due to a lull in individual travel. However, management remains optimistic about the recovery of these operations through increasing demand from the MICE sector and returning individual travelers expected in the upcoming months.
Key Financial Highlights
In terms of financial performance:
Revenue Growth
The Group's total revenue for Q1 2025 surged to 12.5 million euros from just 3.1 million euros in Q1 2024. This increase highlights the successful completion of several residential sales, especially in the Kalaranna District.
Profitability Indicators
Gross profit for the quarter increased to 4.2 million euros, marking a substantial rise from 0.9 million euros in the same timeframe last year, facilitating a positive operating result of 2.5 million euros compared to the loss reported last year. The net result stood at a profit of 1.9 million euros, a significant turnaround from the loss experienced the previous year.
Positive Outlook
Looking forward, the Group aims to maintain its momentum while focusing on disciplined execution and strategic development, ensuring value creation. With a solid foundation established in Tallinn, and expanding operations in both Riga and Vilnius, Pro Kapital is well-positioned to capitalize on improving economic sentiment and deliver robust results throughout the year.
Ann-Kristin Kuusik
CFO
+372 614 4920
prokapital@prokapital.ee
Frequently Asked Questions
What are the key sales figures reported by Pro Kapital for Q1 2025?
Pro Kapital reported a total revenue increase to 12.5 million euros, reflecting a strong demand for residential properties.
How is the Kalaranna development progressing?
The Kalaranna development is nearing completion with a sales rate approaching 60% and 68 units already handed over to buyers.
What projects are ongoing in Kristiine City?
There are four major projects in Kristiine City under development, adding significant residential units to the area.
What challenges does Pro Kapital face in hotel operations?
The hotel sector has seen a dip in individual travel demand but is expected to rebound due to increasing interest in MICE activities.
What is the outlook for Pro Kapital in the coming months?
The company remains optimistic with strategic plans to capitalize on improving market conditions and strengthen financial results.
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