Hepsor AS consolidated unaudited interim report for Q3 2025 and nine months
Hepsor’s consolidated revenue for the third quarter of 2025 was 8.8 million euros (Q3 2024: 20.4 million euros) and the revenue for the first nine months of 2025 was 30.9 million euros (9M 2024: 27.9 million euros). During the first nine months of 2025, 119 homes were handed over to customers (9M 2024: 142 homes), including 17 homes in the third quarter (Q3 2024: 96 homes).
The Group's net profit for the third quarter amounted to 1.2 million euros (Q3 2024: 2.7 million euros), including net profit attributable to the owners of the parent company of 1.1 million euros (Q3 2024: 1.4 million euros) and the net profit for the first nine months of 2025 was 1.5 million euros (9M 2024: 1.2 million euros) of which net profit attributable to owners of the parent company was 0.9 million euros (9M 2024: net loss 0.2 million euros).
The financial results of the reporting period were significantly affected by the sale of properties located at Paevälja 5, 7 and 9, and Narva mnt 150 and 150a, to the joint venture Hepsor SOF OÜ, in which the Group holds a 50% interest. The total transaction value amounted to EUR 9.0 million, excluding VAT. The transactions generated a profit of EUR 1.8 million, which was recognised in the second and third quarters. The profit from the sale of the remaining properties will be recognised in the final stage of the development project in line with the pace of apartment sales.
On 8 October 2025, Hepsor announced that in cooperation with AS LHV Pank, the Group is preparing a bond programme and plans to list the bonds on the Main List of Nasdaq Tallinn Stock Exchange. Information the approval of the prospectus by the Estonian Financial Supervision and Resolution Authority, as well as the start and terms of the bond offering, will be disclosed in due course.
At the General Meeting of Shareholders held on 21 May, it was resolved to pay dividends to shareholders in 2025 from the profit of previous periods in the amount of EUR 0.26 per share, totalling 1.0 million euros. The dividends were paid to shareholders on 19 August of the current year. The income tax expense related to the dividend payment amounted to 0.3 million euros.
Residential development projects
In the third quarter of 2025, a new residential development project located in Riga at Starta 17 was added to Hepsor’s development portfolio. The project foresees the construction of 255 new homes in several stages.
As at 30 September 2025, the Group had a total of 10 residential development projects on sale, of which five had been completed and five were either under construction or scheduled to start construction later in 2025. In completed residential development projects, a total of 355 new homes and 453 m² of commercial space have been built. As of the reporting date, 87% of these, or 309 homes, have been sold under property rights or reservation agreements. Despite consumer uncertainty arising from the economic environment, demand for the Group’s development projects has remained stable, demonstrating customers’ continued confidence in our developments.
As at 30 September 2025, the Group had 374 new homes under construction, including 173 in Latvia and 201 in Estonia.
Commercial real estate
In 2024, we started the construction of StokOfiss U34, a multifunctional commercial building at Ulbrokas 34 in Riga. The leasable area of the building is 8,740 m2. In July 2025, a partial occupancy permit for the building was issued. As of 30 September 2025, 70% of the total leasable area of StokOfiss U34 and 80% of the Group’s completed commercial real estate portfolio is covered by lease agreements.
Canada
Hepsor’s Canadian operations focus on supporting detailed land-use planning for development projects, thereby securing increased building rights. As of 30 September 2025, the Group has invested in five development projects. In August 2025, a decision by the Toronto City Council came into effect, granting building rights for Hepsor’s first Weston Road development project. The City Council’s decision provides for the construction of two residential towers of 35 and 39 storeys. During the detailed planning process, the building volume was successfully increased from 27,000 m² to 62,000 m².
Future outlook
In the fourth quarter of 2025, the Group will commence construction of two development projects in Riga:
- Veidema quarter, stage I, located at Ganibu dambis 17a – a stock-office type development project combining office and warehouse functions;
- Kirsu Kalna Majas residential development project, located at Eiženijas iela 18 – pre-sales began in the third quarter of the year, and in the fourth quarter the construction of two apartment buildings with a total of 54 homes is planned to begin.
In the first half of 2026, the Group plans to launch construction of four new development projects – two residential and one commercial real estate project in Estonia, and one residential project in Latvia:
- V7 residential development project, located at Võistluse 7, Tallinn – Hepsor’s first residential building with a timber frame structure, comprising eight apartments;
- Paevälja quarter, stage I – construction of 93 apartments and 918 m² of commercial space at Päevälja 5, 7 and 9 is scheduled to begin in the second quarter of 2026;
- Peetri business centre, located at Vana-Tartu mnt 49, Rae Parish – the building will include 3,551 m² of leasable area, 88% of which is already covered by lease agreements;
- Starta 17 residential development project in Riga – construction will begin in stages, with a total of 255 new homes to be completed.
Hepsor announces that it plans to hold an autumn-winter investor meeting on November 13 in Estonia and November 14 in Latvia, where the Group’s CEO, Martti Krass, will give an overview of Group’s financial results, development portfolio, as well as planned investments and bond program. Anyone interested is welcome to participate by notifying .
The full unaudited consolidated interim report for Q3 and the nine months of 2025 is available on Hepsor’s website:
Consolidated statement of financial position
| in thousands of euros | 30 September 2025 | 31 December 2024 | 30 September 2024 |
| Assets | |||
| Current assets | |||
| Cash and cash equivalents | 1,867 | 6,249 | 6,830 |
| Trade and other receivables | 1,796 | 761 | 2,054 |
| Current loan receivables | 0 | 200 | 511 |
| Inventories | 53,994 | 64,141 | 77,000 |
| Total current assets | 57,657 | 71,351 | 86,395 |
| Non-current assets | |||
| Property, plant and equipment | 274 | 288 | 138 |
| Intangible assets | 1 | 2 | 3 |
| Investment properties | 7,980 | 7,980 | 0 |
| Financial investments | 7,550 | 6,424 | 4,293 |
| Investments in joint ventures | 1 | 0 | 0 |
| Non-current loan receivables | 6,572 | 2,428 | 2,302 |
| Other non-current receivables | 631 | 340 | 311 |
| Total non-current assets | 23,009 | 17,462 | 7,047 |
| Total assets | 80,666 | 88,813 | 93,442 |
| Liabilities and equity | |||
| Current liabilities | |||
| Loans and borrowings | 8,192 | 23,336 | 24,726 |
| Current lease liabilities | 13 | 52 | 35 |
| Prepayments from customers | 1,211 | 724 | 940 |
| Trade and other payables | 5,255 | 6,542 | 8,715 |
| Total current liabilities | 14,671 | 30,654 | 34,416 |
| Non-current liabilities | |||
| Loans and borrowings | 36,720 | 31,352 | 32,571 |
| Non-current lease liabilities | 162 | 162 | 29 |
| Other non-current liabilities | 7,500 | 4,635 | 4,340 |
| Total non-current liabilities | 44,382 | 36,149 | 36,940 |
| Total liabilities | 59,053 | 66,803 | 71,356 |
| Equity | |||
| Share capital | 3,913 | 3,855 | 3,855 |
| Share premium | 8,917 | 8,917 | 8,917 |
| Reserves | 385 | 385 | 385 |
| Retained earnings | 8,398 | 8,853 | 8,929 |
| Total equity | 21,613 | 22,010 | 22,086 |
| incl. total equity attributable to owners of the parent | 21,323 | 20,912 | 20,664 |
| incl. non-controlling interest | 290 | 1,098 | 1,422 |
| Total liabilities and equity | 80,666 | 88,813 | 93,442 |
Consolidated statement of profit and loss and other comprehensive income
| in thousands of euros | 9M 2025 | 9M 2024 | Q3 2025 | Q3 2024 |
| Revenue | 30,888 | 27,855 | 8,825 | 20,433 |
| Cost of sales (-) | -25,946 | -23,624 | -6,743 | -16,579 |
| Gross profit | 4,942 | 4,231 | 2,082 | 3,854 |
| Marketing expenses (-) | -676 | -603 | -228 | -213 |
| Administrative expenses (-) | -1,356 | -1,342 | -438 | -453 |
| Other operating income | 314 | 84 | 232 | 14 |
| Other operating expenses (-) | -211 | -36 | -45 | -12 |
| Operating profit (-loss) of the year | 3,013 | 2,334 | 1,603 | 3,190 |
| Financial income | 322 | 262 | 165 | 61 |
| Financial expenses (-) | -1,527 | -1,419 | -525 | -548 |
| Profit before tax | 1,808 | 1,177 | 1,243 | 2,703 |
| Corporate income tax | -283 | 0 | 0 | 0 |
| Net profit (-loss) for the year | 1,525 | 1,177 | 1,243 | 2,703 |
| Attributable to owners of the parent | 937 | -155 | 1,133 | 1,371 |
| Non-controlling interest | 588 | 1,332 | 110 | 1,332 |
| Other comprehensive income (-loss) | ||||
| Changes related to change of ownership | -81 | 76 | -81 | 0 |
| Change in value of embedded derivatives with minority shareholders | -534 | -1,203 | -106 | -1,203 |
| The effects of changes in foreign exchange rates | -375 | -130 | -83 | -130 |
| Other comprehensive income (-loss) for the period | -990 | -1,257 | -270 | -1,333 |
| Attributable to owners of the parent | 418 | -174 | 759 | -130 |
| Non-controlling interest | -1,408 | -1,083 | -1,029 | -1,203 |
| Comprehensive income (-loss) for the period | 535 | -80 | 973 | 1,370 |
| Attributable to owners of the parent | 1,355 | -329 | 1,892 | 1,241 |
| Non-controlling interest | -820 | 249 | -919 | 129 |
| Earnings per share | ||||
| Basic (euros per share) | 0.24 | 0.59 | 0.29 | 0.36 |
| Diluted (euros per share) | 0.24 | 0.59 | 0.29 | 0.36 |
Martti Krass
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Hepsor AS () is a developer of residential and commercial real estate. The Group operates in Estonia, Latvia and Canada. During our fourteen years of operation, we have created 2 003 homes and nearly 44,787 m2 of commercial space. As the first developer in the Baltic countries, Hepsor has implemented several innovative engineering and technical solutions that make the buildings built by the company more energy-efficient and thus more environmentally friendly. The company's portfolio includes a total of 25 development projects with a total area of 178,200 m2. In addition, the Group is involved in five projects in Canada, where the main activity is the preparation of detailed land use plans aimed at increasing building rights.
