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IR - CORRECTION: Pro Kapital Council approved Consolidated Interim Report for Ii Quarter and 6 Months of 2025 (Unaudited)

Company: Pro Kapital Grupp Date: 2025-08-14 Language: English Register to download
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 CORRECTION: Pro Kapital Council approved Consolidated Interim Report for Ii Quarter and 6 Months of 2025 (Unaudited)

# CORRECTION: Pro Kapital Council approved Consolidated Interim Report for Ii Quarter and 6 Months of 2025 (Unaudited)

The  Group published today the Consolidated Interim Report for II Quarter and 6
Months  of 2025 (Unaudited). In the stock  exchange notice and in the respective
section  "Key  financials"  of  the  report,  it was erroneously stated that the
result  for the second quarter  was a net loss,  whereas the actual result was a
net profit of EUR 4.3 million.
Therefore,  we are  publishing again  both the  corrected notice and the amended
report.

MANAGEMENT REPORT

Real Estate Development

Tallinn

By  the second quarter of 2025, construction of the final phase of the Kalaranna
development  (4 buildings, 146 units) reached an end with some landscaping and a
few  client modifications works remaining. As of the publication of this report,
76 sold  apartments have been handed over to  buyers, and the overall sales rate
has reached 60.7%.

In  Kristiine City, we are continuing the design and building permit process for
four different projects submitted to the Tallinn City Planning Department:

- "Dunte" - still awaiting the issuance of the building permit.
-  Sammu  2/4 /  Sõjakooli  15 -  building  permit  application was submitted in
December 2024.
- Marsi 1 / Sõjakooli 13 - building permit application was submitted in February
2025.
-  Sammu 3 /  Sõjakooli 17 -  we are  in the  design phase  and preparing  a new
concept,  alongside an application for a  change of use to allow 95% residential
and  5% commercial functions. The plan  is to submit the  projecting to the city
within July 2025.

All the above listed projects will add ca 35.000 sqm of GBA with ca 350 units of
predominantly  residential  function  (95%  residential/5%  commercial)  to  our
portfolio in a well-established neighbourhood in Kristiine City.
As of Q2 2025, construction of the White Building (91 residential units) in Uus-
Kindrali  project, located in Kristiine City at Talli Street 3 /Sammu Street 8,
Tallinn,  has progressed well.  As of the  date of this  report, we have already
begun  the installation of final finishes  (tiles, paintwork, etc). To date, the
project   has   reached   62.4% sellout,   with  final  completion  expected  in
November-December 2025.

Earlier  this year, we had also started  the excavation and foundation works for
another  7-story residential building  with 90 units, located  next to the White
Building  at Sammu Street 10 /  Seebi Street 24a, Tallinn. With  sales we are at
12.2% sellout.  To date we  have almost finished  the underground works and will
start  erecting  the  structure  above  ground.  The expected completion of this
residential building is planned for Oct-Nov 2026.

Riga

Following  the successful completion  of sales in  River Breeze Residence at the
end  of 2024, with all units sold, the Group initiated preparations for the next
phase  of development  in Kliversala  - the  Blue Marine project (96 residential
units).  Throughout  the  first  half  of  2025, we  have taken key steps toward
launching  this new stage.  The engineering team  is now nearly fully assembled,
and  construction preparation  started in  July 2025. At  the same time, we have
collected interest from potential buyers.

To support this next stage of development, two new subsidiaries were established
in  June  2025: SIA  Pro  Kapital  Engineering,  which  will  be responsible for
construction  project management activities in Latvia, and SIA BM Kliversala for
the purpose of developing Blue Marine project.

In Vilnius

During  Q2 we continued  the construction of  the final stage  of Shaltini? Namai
Attico  with city villas and  a commercial building. We  are currently at almost
40% sellout  in the  villas and  slightly above  10% in the  commercial building
while   achieving  record  prices  in  Vilnius  real  estate  market.  Regarding
construction  we are on schedule to achieve substantial completion by the end of
2025.
Our  latest investment on  Naugarduko Street in  Vilnius involves transforming a
former  school  into  a  high-end  residential  complex.  Located on a hill with
breathtaking   views   of  Vilnius'  Old  Town,  the  development  will  feature
approximately  50 luxury  apartments.  The  building  permit  process  is  still
ongoing, with approval expected in Q3 2025.

Hotel operations

Hotel  performance  in  the  second  quarter  was  still slightly below budgeted
expectations but overall, we are confident that the performance shortfall can be
recovered  by September-October.  The second quarter result was expected to have
some   challenges  due  to  the  closure  of  the  Thermal  Baths  for  periodic
maintenance,  which very directly  affected occupancy and  tourists' presence in
our destination.

We  are  confident  that  the  property  will  maintain  the  positive trends of
performance shown in the past years.

Other operations

The  Group  holds  a  majority  stake  in  Preatoni Nuda Proprietà (PNP) and its
subsidiary   Preatoni  Intermediazioni  Immobiliari  (PII),  which  continue  to
strengthen  their presence in  the Italian real  estate market, focusing on bare
ownership transactions.

Despite the market slowdown in 2024, caused by rising interest rates, confidence
in  the  real  estate  sector  has  been  gradually recovering, with full market
normalization expected by the end of 2025.

Conclusion

The  first half  of 2025 showed  stabilisation across  our geographical markets,
despite  continued bureaucratic delays  and seasonal slowdowns  in some areas of
our  operations. In  Tallinn, we  continued to  make progress  both in  terms of
construction  milestones and  in expanding  our development  pipeline within the
promising  Kristiine City area. Riga continued  with the momentum in preparation
of  the  Blue  Marine  project,  where  we  are applying the successful in-house
construction model used in Estonia. In Vilnius, we are concluding new sales with
record  pricing in our flagship project and laying the groundwork for a high-end
transformation in Naugarduko Street.

Overall,   the   Group  remains  focused  on  disciplined  execution,  strategic
development,  and value  creation. We  are well  positioned to capitalize on the
improving macroeconomic sentiment and deliver strong results throughout the rest
of the year.

Edoardo Preatoni
CEO

Key financials

The  total revenue  of the  Group in  first six  months of 2025 was 28.5 million
euros  compared to  6.9 million euros  in first  six months  of 2024.  The total
revenue  of the  second quarter  was 16.1 million  euros compared to 3.9 million
euros in 2024.

The  real estate  sales revenues  are recorded  at the  point of time when legal
title  is transferred to the  buyer. Therefore, the revenues  from sales of real
estate  depend on the  construction cycle and  the completion of the residential
developments.

Revenue from the sale of real estate increased compared to the previous year, as
we  continued  handing  over  completed  apartments  in  the Kalaranna District,
Tallinn, following the initial deliveries that began in December 2024. The lower
revenue  in  the  second  quarter  of  2024 reflects  the  development cycle, as
construction  was ongoing and only a limited number of remaining inventory units
were available for sale in Riga and Vilnius.

The  gross profit  for the  first six  months of  2025 increased to 10.2 million
euros compared to 2.4 million euros in the same period of 2024. The gross profit
of  the second  quarter was  6.0 million euros  compared to 1.5 million euros in
2024.

The  operating  result  in  the  first  six  months was 7.5 million euros profit
comparing  to  0.9 million  euros  loss  during  the  same  period  in 2024. The
operating  result of the second quarter was 5.0 million euros profit compared to
0.2 million euros loss in the second quarter of 2024.

The  net result for the  first six months of  2025 was 6.2 million euros profit,
comparing  to 3.0 million euros loss in the  reference period. The net result of
the  second quarter was  4.3 million euros profit  compared to 1.3 million euros
loss in the same period of 2024.

Cash  generated in operating activities during first six months of 2025 was 8.5
million  euros comparing  to 4.5 million  euros used  during the  same period in
2024. Cash  generated  in  operating  activities  during second quarter was 7.2
million euros compared to 2.8 million euros used in the second quarter of 2024.

Net  assets per share were 1.01 euros as of 30 June 2025, compared to 0.93 euros
a year earlier.?

Key performance indicators

                              2025 6M   2024 6M   2025 Q2   2024 Q2   2024 12M
-------------------------------------------------------------------------------
  Revenue, th, EUR             28 519     6 907    16 069     3 853     18 158

  Gross profit, th. EUR        10 233     2 423     6 026     1 535      5 423

  Gross profit, %                 36%       35%       38%       40%        30%

  Operating result, th. EUR     7 517      -860     4 975      -201        123

  Operating result, %             27%      -12%       32%       -5%         1%

  Net result, th. EUR           6 188    -3 040     4 298    -1 340     -3 875

  Net result, %                   22%      -44%       27%      -35%       -21%


                                        30.06.2025   30.06.2024   31.12.2024
-----------------------------------------------------------------------------
  Total Assets, th. EUR                    115 759      109 695      118 758

  Total Liabilities, th. EUR                58 350       57 207       67 537

  Total Equity, th. EUR                     57 409       52 488       51 221

  Debt/ Equity \*                              1,02         1,09         1,32



  Return on Assets, % \*\*                      5,5%        -2,9%        -3,4%

  Return on Equity, % \*\*\*                    11,3%        -5,7%        -7,0%

  Net asset value per share, EUR \*\*\*\*         1,01         0,93         0,89

\*debt / equity = total debt / total equity
\*\*return on assets = net profit/loss / total average assets
\*\*\*return on equity = net profit/loss / total average equity

\*\*\*\*net asset value per share = net equity / number of shares

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated interim statement of financial position

 in thousands of euros                         30.06.2025 30.06.2024 31.12.2024
-------------------------------------------------------------------------------
 ASSETS

 Current assets

   Cash                                             3 572      8 576      4 344

   Current receivables                              1 495      1 481        822

   Prepaid expenses                                     0        359        422

   Inventories                                     57 030     44 550     56 951
                                              ---------------------------------
 Total current assets                              62 097     54 966     62 539

 Non-current assets

   Non-current receivables                            314         20        317

   Property, plant and equipment                    7 463      7 655      7 595

   Right-of-use-assets                                384        495        513

   Investment property                             42 505     40 405     44 210

   Goodwill                                           863        204        863

   Intangible assets                                2 133      3 615      2 721
                                              ---------------------------------
 Total non-current assets                          53 662     52 394     56 219

 Assets held for sale                                   0      2 335          0

 Total assets helt for sale                             0      2 335          0

 TOTAL ASSETS                                     115 759    109 695    118 758

 LIABILITIES AND EQUITY

 Current liabilities

   Current debt
                                                    7 284      1 749     21 893

   Customer advances                                7 525      7 083      9 618

   Trade and other payables                         6 010      6 235      5 600

   Tax liabilities                                    471        175        833

   Short-term provisions                               16          8         24
                                              ---------------------------------
 Total current liabilities                         21 306     15 250     37 968

 Non-current liabilities

   Non-current debt                                34 966     40 676     27 350

   Other long term liabilities                          6          2          6

   Deferred income tax liabilities                  1 869      1 130      2 031

   Long-term provisions                               203        149        182
                                              ---------------------------------
 Total non-current liabilities                     37 044     41 957     29 569

 TOTAL LIABILITIES                                 58 350     57 207     67 537

 Equity

   Share capital in nominal value                  11 338     11 338     11 338

   Share premium                                    5 661      5 661      5 661

   Statutory reserve                                1 134      1 134      1 134

   Revaluation reserve                              1 977      2 092      1 977

   Retained earnings                               36 865     31 175     30 523
                                              ---------------------------------
 Total equity attributable to owners of the
 Company                                           56 975     51 400     50 633
                                              ---------------------------------
 Non-controlling interest                             434      1 088        588

 TOTAL EQUITY                                      57 409     52 488     51 221

 TOTAL LIABILITIES AND EQUITY                     115 759    109 695    118 758

Consolidated interim statements of comprehensive income

                                             2025   2024    2025   2024    2024
 in thousands of euros                         6M     6M      Q2     Q2     12M
-------------------------------------------------------------------------------
 CONTINUING OPERATIONS

 Operating income

 Revenue                                   28 519  6 907  16 069  3 853  18 158

 Cost of goods sold                       -18 286 -4 484 -10 043 -2 318 -12 735
                                         --------------------------------------
 Gross profit                              10 233  2 423   6 026  1 535   5 423



 Marketing expenses                          -626   -485    -340   -263  -1 136

 Administrative expenses                   -2 752 -2 790  -1 426 -1 465  -5 293

 Other operating income                       770     19     758     17   1 164

 Other operating expenses                    -108    -27     -43    -25     -35
                                         --------------------------------------
 Operating profit                           7 517   -860   4 975   -201     123



 Finance income                                23     67      10     25     123

 Finance cost                              -1 514 -2 245    -769 -1 172  -4 276
                                         --------------------------------------
 Profit/ loss before income tax             6 026 -3 038   4 216 -1 348  -4 030

 Income tax                                   162     -2      82      8     155
                                         --------------------------------------
 Profit/ loss for the period                6 188 -3 040   4 298 -1 340  -3 875

 Attributable to:

 Equity holders of the parent               6 342 -3 023   4 347 -1 323  -3 675

 Non-controlling interest                    -154    -17     -49    -17    -200



 Total other comprehensive income

 Net change in asset revaluation reserve        0      0       0      0    -115
                                         --------------------------------------
 Total comprehensive income for the
 period                                     6 188 -3 040   4 298 -1 340  -3 990

 Attributable to:

 Equity holders of the parent
                                            6 342 -3 023   4 347 -1 323  -3 790

 Non-controlling interest                    -154    -17     -49    -17    -200



 Earnings per share (Basic) EUR                0,11  -0,05    0,08  -0,02   -0,06

The full report can be found in the file attached.

Ann-Kristin Kuusik
CFO
+372 614 4920
\[email protected\]