Management Report
Real Estate Development Overview
Tallinn Developments
In the third quarter of 2025, Pro Kapital continued to make significant progress on the Uus-Kindrali project located within Kristiine City. The White Building, which comprises 91 residential units at Talli Street 3 / Sammu Street 8, has seen remarkable advancements. Most apartments have received final finishes—tiling and painting. Client inspections are set to begin soon, with final notarial deeds anticipated to be signed in mid-November. As of the end of Q3, approximately 73.1% of units have been sold.
Additionally, another residential building featuring 90 units is under construction adjacent to the White Building at Sammu Street 10 / Seebi Street 24a. As of this report, we have completed the installation of prefabricated concrete elements up to the top floor and expect the final roof elements to be in place by early November. The targeted completion for this building is set for October to November 2026.
Within Kristiine City, planning and design for four more projects have been submitted to the Tallinn City Planning Department. These upcoming developments will contribute around 35,000 sqm of gross building area, primarily enhancing residential units—providing approximately 350 housing options while reinforcing our establishment in this urban area.
The final phase of the Kalaranna development—including four buildings and 146 units—has reached completion. A few contractors are on-site to finalize remaining tasks, and we are also enhancing marketing units to strengthen sales efforts. The sell-out rate for this project stands at around 60.9%.
Riga Developments
In early 2025, Pro Kapital successfully sold all units in the River Breeze Residence and has since begun preparations for the next project phase in Kliversala, named the Blue Marine project, which will feature 96 residential units. Construction commenced in Q3 2025, with progress on retaining wall piles nearing completion and excavation works ongoing. We are actively pursuing sales initiatives while also negotiating terms for a construction loan with a local financial institution.
Vilnius Projects
During Q3, the final stage of Šaltini? Namai Attico saw steady construction, which includes city villas and a commercial building. The villas have a nearly 43% sell-out, while the commercial building reports a little over 21% sold, achieving peak pricing in Vilnius’ competitive real estate market. We are on course for substantial completion by the end of 2025.
Our latest endeavor on Naugarduko Street involves converting a former school building into an upscale residential complex featuring around 50 luxury apartments with stunning views of Vilnius’ Old Town. The building certification process is ongoing, with an approval expected soon.
Hotel Operations Insights
Hotel performance this quarter met most expectations, although it fell slightly short of the original budget goals. Demand soared in July and August, especially in the individual leisure segment, but September's numbers did not meet expectations, attributed to weaker enterprise and MICE segment bookings. The outlook for the remaining months of the year remains optimistic despite some current soft spots in corporate demand.
Other Operational Highlights
Our Italian operations, notably Preatoni Nuda Proprietà (PNP) and Preatoni Intermediazioni Immobiliari (PII), have displayed steady performance despite the broader market slump. Interest rate hikes have temporarily influenced transaction volumes, yet the bare ownership model demonstrates strong fundamentals, leading to increased adoption of this innovative investment strategy among individuals and institutions.
In recent months, PNP has fortified its market stance, forged new collaborations, and showcased resilience amid changing market conditions. There is a gradual return of confidence in the Italian real estate sector, and as 2025 progresses, we anticipate PNP will emerge in a robust position, heightening brand presence and transaction flow.
Conclusion
The first three quarters of 2025 have heralded a period of stabilization and resolute determination across all our markets. Despite the common bureaucratic challenges and seasonal slower periods, our teams have persevered—advancing our projects steadily, focusing on results over promises.
In Tallinn, construction advancements bring value through persistent effort. Riga’s Blue Marine project reflects our commitment to hands-on building and expertise. In Vilnius, the record-setting prices in our premier project underscore our dedication to quality and reliability.
As we conclude this quarter, I express gratitude to all colleagues, partners, and shareholders for their unwavering trust and commitment. Each progressive step—irrespective of size—is a manifestation of our collective resolve and long-term vision.
Edoardo Preatoni
CEO
Key Financial Metrics
Pro Kapital reported total revenues of EUR 34.3 million over the first nine months of 2025, marking a significant increase compared to EUR 10.6 million during the same period in 2024. For the third quarter, total revenue amounted to EUR 5.7 million, eclipsing the EUR 3.7 million recorded in Q3 2024.
Real estate sales revenues are recognized upon legal title transfer to buyers. Thus, overall revenue figures depend on the construction cycle and project completion status. Revenue derived from real estate sales amplified year-over-year as we continued delivering apartments in the Kalaranna District, following initial deliveries that commenced in December 2024. The diminished revenue in Q1 to Q3 of 2024 reflects ongoing construction with limited inventory available for sale in both Riga and Vilnius.
Gross profit for the first nine months rose to EUR 11.9 million, compared to EUR 2.9 million a year earlier. In Q3, the gross profit equaled EUR 1.7 million versus EUR 0.4 million in the previous year.
The operating result for the initial nine months stood at EUR 7.7 million, contrasting with a EUR 1.7 million loss from Q3 2024. Notably, Q3 2025 reported an operating profit of EUR 0.2 million, as opposed to a EUR 0.9 million loss during the same period last year.
Over the first nine months, the net result was EUR 6.0 million profit, in comparison to a loss of EUR 4.1 million in the prior year. The Q3 net result was a minor loss of EUR 0.2 million, following a loss of EUR 1.0 million in Q3 2024.
Operating cash flow generated EUR 6.8 million during the first nine months, contrasting with EUR 10.0 million used in the same preliminary period of 2024. For Q3, cash flow indicated a decrease of EUR 1.8 million, drying up from EUR 5.5 million utilized in Q3 2024.
Net assets per share are now at EUR 1.00, reflecting an increase from EUR 0.91 at the same point last year.
Frequently Asked Questions
1. What is Pro Kapital's recent performance in terms of revenue?
Pro Kapital reported total revenues of EUR 34.3 million for the first nine months of 2025, significantly up from EUR 10.6 million during the same timeframe of 2024.
2. How many units have been sold at the White Building?
As of the latest report, approximately 73.1% of the 91 units in the White Building have been sold.
3. What is the status of the Blue Marine project in Riga?
The Blue Marine project, which features 96 residential units, commenced construction in Q3 2025 and is currently progressing with excavation works.
4. What are the company’s growth indicators?
Gross profit for the first nine months of 2025 reached EUR 11.9 million compared to EUR 2.9 million a year earlier, and Pro Kapital aims to continue its expanding trajectory in various projects.
5. Who should I contact for more information?
For inquiries, please reach out to Ann-Kristin Kuusik, CFO, at +372 614 4920 or via email at prokapital@prokapital.ee.
