(MENAFN- GlobeNewsWire - Nasdaq) 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
Juhatuse liige
Telefon: +372 5692 4919
e-post: ...

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.

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