Overview of Pro Kapital's Consolidated Interim Report
The Group has recently released its Consolidated Interim Report showcasing impressive progress for the second quarter and first half of 2025. A noteworthy correction in the report revealed a net profit of EUR 4.3 million for Q2, contrary to earlier miscommunication of a net loss.
Real Estate Development Highlights
Tallinn Developments
As of the end of Q2 2025, construction for the final phase of the Kalaranna development is nearly complete, with just a few landscaping details and client modifications left. Notably, 76 sold apartments have been handed over, achieving an overall sales rate of 60.7%.
In Kristiine City, Pro Kapital is actively pursuing building permits for several projects. Among these are four significant developments:
- Dunte - Awaiting issuance of building permit.
- Sammu 2/4 / Sõjakooli 15 - Building permit application submitted in late 2024.
- Marsi 1 / Sõjakooli 13 - Application submitted earlier in 2025.
- Sammu 3 / Sõjakooli 17 - Currently in the design phase with plans to achieve a mix of 95% residential and 5% commercial space.
Collectively, these projects are set to add approximately 35,000 square meters of GBA, significantly enhancing the residential offerings in Kristiine City.
Additionally, the White Building project, comprising 91 residential units, is progressing well with a sellout rate of 62.4%. Completion is anticipated by late 2025.
Continued Growth in Riga
In Riga, after the complete sale of units at the River Breeze Residence, work has begun on a new project named Blue Marine, introducing 96 residential units. The engineering team has been established, and preparations for construction are in progress.
Also, two new subsidiaries were introduced recently to facilitate project development and management in Latvia.
Vilnius Projects
Meanwhile, in Vilnius, the ongoing construction of Šaltini? Namai Attico is about 40% sold. This project is on track for substantial completion by the end of 2025. A vital investment on Naugarduko Street focuses on transforming a former educational institution into a luxurious residential complex with about 50 high-end apartments.
Hotel Operations Performance
The hotel division experienced slight declines in performance during the second quarter but remains optimistic about recovery in the coming months. The temporary closure of the Thermal Baths for maintenance had a direct impact on visitor numbers, but overall trends show promise for restoring occupancy rates.
Financial Performance Insights
During the first six months of 2025, Pro Kapital reported total revenue of EUR 28.5 million, a substantial increase from EUR 6.9 million in the same period the previous year. Q2 revenue reached EUR 16.1 million compared to EUR 3.9 million last year. Revenue growth reflects the successful delivery of completed apartments in the Kalaranna District, contributing significantly to the positive financial trajectory.
The company also reported a gross profit of EUR 10.2 million in the first half of the year, compared to EUR 2.4 million a year ago. This upward trend is coupled with an operating profit shift from a loss of EUR 0.9 million last year to a profit of EUR 7.5 million this year.
Net profit also saw a notable transformation, with a reported profit of EUR 6.2 million in the first six months, improving from a loss of EUR 3.0 million in the equivalent period of 2024.
Overall, Pro Kapital remains focused on strategic growth, robust execution, and excellent value creation opportunities within its core markets.
Future Opportunities and Strategy
The company is well-positioned to take advantage of the recovering macroeconomic sentiments in the real estate sector. Pro Kapital’s disciplined approach to project management alongside an expansive development pipeline is expected to yield substantial returns in the forthcoming quarters.
With the macroeconomic climate showing signs of improvement, the Group is looking forward to continuous growth and exploring new opportunities within its established markets.
Ann-Kristin Kuusik
CFO
+372 614 4920
prokapital@prokapital.ee
Frequently Asked Questions
What were the key financial highlights for Pro Kapital in Q2 2025?
Pro Kapital achieved a net profit of EUR 4.3 million in Q2 2025, a significant recovery from previous losses.
How many residential units are being developed in Kristiine City?
The ongoing projects in Kristiine City aim to add approximately 350 residential units.
What progress has been made on the Blue Marine project?
Work on the Blue Marine project in Riga has started with a fully assembled engineering team and preparations for construction.
What is Pro Kapital's outlook for future markets?
Pro Kapital anticipates growth as macroeconomic conditions improve, with a strategic focus on disciplined project execution.
How has the hotel division performed in the latest report?
The hotel performance was slightly below expectations due to external factors, yet recovery is anticipated in coming months.
