Pro Kapital Council approved Consolidated Interim Report for III Quarter and 9 Months of 2025 (Unaudited)

MANAGEMENT REPORT

Real Estate Development

Tallinn

During the third quarter of 2025, construction works continued at the Uus-Kindrali project, located in Kristiine City, Tallinn.

The White Building (91 residential units) at Talli Street 3 / Sammu Street 8 has progressed well. As at the date of this report, most apartments have received their final finishes, including tiling and painting. The first client inspections are scheduled to begin shortly, followed by the signing of final notarial deeds in mid-November. As at the end of the third quarter, the project has reached approximately 73.1% sell-out.

At the same time, construction is ongoing for another seven-storey residential building with    90 units, located next to the White Building at Sammu Street 10 / Seebi Street 24a, Tallinn.         As at this report, the installation of prefabricated concrete elements has reached the top floor, and the final roof elements are expected to be installed in early November. The completion of this building is targeted for October–November 2026.

Within Kristiine City, we are also advancing the design and building permit processes for four additional projects submitted to the Tallinn City Planning Department. These developments will add approximately 35,000 sqm of GBA, comprising around 350 predominantly residential units (about 95% residential and 5% commercial), further strengthening our presence in this well-established urban area.

As at Q3 2025, construction of the final phase of the Kalaranna development (comprising four buildings and 146 units) has been completed, with only a few contractors remaining on site to finalize punch list items. At the same time, we are implementing additional improvements to selected marketing units to further support sales. As at the date of this report, the project has reached approximately 60.9% sell-out.

Riga

At the beginning of 2025, after all units in River Breeze Residence had been successfully sold, the Group commenced preparations for the next development phase in Kliversala – the Blue Marine project (96 residential units).
Construction works started in the third quarter of 2025 and the project has since progressed with retaining wall piles completed and excavation works underway.
At the same time, we are actively engaged in sales activities and negotiating the terms of a construction loan agreement with a local bank.

In Vilnius

During Q3 we continued the construction of the final stage of Šaltinių Namai Attico with city villas and a commercial building. We are currently at almost 43% sellout in the villas and slightly above 21% 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 by the end of the year.

Hotel operations

Overall performance in the third quarter was broadly in line with expectations, although slightly below the initial budgeted targets. Demand was mainly driven by the individual leisure segment during July and August, when the hotel exceeded expectations, while September performance fell short due to weaker than expected demand from the Corporate and MICE segments. The outlook for the remainder of the year remains positive, albeit with some current softness observed in corporate demand.

Other operations

Our Italian operations, led by Preatoni Nuda Proprietà (PNP) and Preatoni Intermediazioni Immobiliari (PII), continued to perform steadily despite the broader market slowdown in 2024. The rise in interest rates has temporarily affected transaction volumes, but the fundamentals of the bare ownership model remain very strong — and we see increasing recognition of this innovative investment concept among both private and institutional investors.
Over the past months, PNP has strengthened its market position, built new partnerships, and demonstrated resilience in a changing environment. Confidence in the Italian real estate sector is gradually returning, and as conditions normalize through 2025, we expect PNP to emerge stronger, with even greater brand visibility and deal flow. 

Conclusion

The first nine months of 2025 have been a period of stabilization and quiet determination across all our markets. Despite the usual bureaucratic hurdles and seasonal slowdowns, our teams have continued to move forward — delivering progress, not promises.

In Tallinn, construction and new planning milestones within Kristiine City show how consistent effort translates into lasting value. In Riga, the Blue Marine project is taking shape, reflecting our belief in building with our own hands and know-how. And in Vilnius, achieving record sales prices in our flagship project reaffirms our reputation for quality and trust.
I am proud of how far we have come — often in complex circumstances — and even more confident in what lies ahead. With a focused team, a solid pipeline, and improving market sentiment, we are turning stability into momentum. The foundations are strong, and I am convinced that the remainder of 2025 will confirm our capacity to grow with discipline, creativity, and purpose.

I would like to thank all our colleagues, partners, and shareholders for their continued trust and dedication. Every step forward — no matter how small — is the result of shared commitment and belief in our long-term vision.

Edoardo Preatoni
CEO

Key financials

The total revenue of the Group in first nine months of 2025 was EUR 34.3 million compared with EUR 10.6 million in first nine months of 2024. The total revenue of the third quarter was EUR 5.7 million compared with EUR 3.7 million 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 with 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 during the first nine months 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 nine months of 2025 increased to EUR 11.9 million compared with EUR 2.9 million in the same period of 2024. The gross profit of the third quarter was EUR 1.7 million compared with EUR 0.4 million in 2024.

The operating result in the first nine months was EUR 7.7 million profit compared with EUR 1.7 million loss during the same period in 2024. The operating result of the third quarter was EUR 0.2 million profit compared with EUR 0.9 million loss in the third quarter of 2024.

The net result for the first nine months of 2025 was EUR 6.0 million profit, compared with EUR 4.1 million loss in the reference period. The net result of the third quarter was EUR 0.2 million loss compared with EUR 1.0 million loss in the same period of 2024.

Cash generated in operating activities during first nine months of 2025 was EUR 6.8 million compared with EUR 10.0 million used during the same period in 2024. Cash used in operating activities during third quarter was EUR 1.8 million compared with EUR 5.5 million used in the third quarter of 2024.

Net assets per share were EUR 1.00 as at 30 September 2025, compared with EUR 0.91 a year earlier.

Key performance indicators

	2025 9M	2024 9M	2025 Q3	2024 Q3	2024 12M
Revenue, th, EUR	34 265	10 604	5 746	3 697	18 158
Gross profit, th. EUR	11 934	2 856	1 701	433	5 423
Gross profit, %	35%	27%	30%	12%	30%
Operating result, th. EUR	7 668	-1 731	151	-872	123
Operating result, %	22%	-16%	3%	-24%	1%
Net result, th. EUR	6 025	-4 062	-163	-1 022	-3 875
Net result, %	18%	-38%	-3%	-28%	-21%
Earnings per share, EUR	0.11	-0.07	0.00	-0.02	-0.06

	30.09.2025	30.09.2024	31.12.2024
Total Assets, th. EUR	120 694	113 614	118 758
Total Liabilities, th. EUR	63 728	62 148	67 537
Total Equity, th. EUR	56 966	51 466	51 221
Debt/ Equity *	1,12	1,21	1,32
Return on Assets, % **	5.1%	-2.9%	-3.4%
Return on Equity, % ***	11.1%	-5.7%	-7.0%
Net asset value per share, EUR ****	1.00	0.91	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		30.09.2025	30.09.2024	31.12.2024
ASSETS
Current assets
	Cash	4 925	6 112	4 344
	Current receivables	1 330	1 283	822
	Prepaid expenses	299	275	422
	Inventories	60 879	51 757	56 951
Total current assets		67 433	59 427	62 539
Non-current assets
	Non-current receivables	313	19	317
	Property, plant and equipment	7 394	7 639	7 595
	Right-of-use-assets	320	438	513
	Investment property	42 532	40 493	44 210
	Goodwill	863	204	863
	Intangible assets	1 839	3 026	2 721
Total non-current assets		53 261	51 819	56 219
Assets held for sale		0	2 368	0
Total assets helt for sale		0	2 368	0
TOTAL ASSETS		120 694	113 614	118 758
LIABILITIES AND EQUITY
Current liabilities
	Current debt	1 230	1 750	21 893
	Customer advances	8 670	8 204	9 618
	Trade and other payables	6 220	6 059	5 600
	Tax liabilities	418	241	833
	Short-term provisions	5	9	24
Total current liabilities		16 543	16 263	37 968
Non-current liabilities
	Non-current debt	45 272	44 585	27 350
	Other long-term liabilities	6	2	6
	Deferred income tax liabilities	1 788	1 131	2 031
	Long-term provisions	119	167	182
Total non-current liabilities		47 185	45 885	29 569
TOTAL LIABILITIES		63 728	62 148	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	36 669	30 186	30 523
Total equity attributable to owners of the Company		56 779	50 411	50 633
Non-controlling interest		187	1 055	588
TOTAL EQUITY		56 966	51 466	51 221
TOTAL LIABILITIES AND EQUITY		120 694	113 614	118 758

Consolidated interim statements of comprehensive income

in thousands of euros		2025 9M	2024 9M	2025 Q3	2024 Q3	2024 12M
CONTINUING OPERATIONS
Operating income
Revenue		34 265	10 604	5 746	3 697	18 158
Cost of goods sold		-22 331	-7 748	-4 045	-3 264	-12 735
Gross profit		11 934	2 856	1 701	433	5 423
Marketing expenses		-933	-773	-307	-288	-1 136
Administrative expenses		-4 225	-3 819	-1 473	-1 029	-5 293
Other operating income		1 015	34	245	15	1 164
Other operating expenses		-123	-29	-15	-3	-35
Operating profit		7 668	-1 731	151	-872	123
Finance income		30	98	7	31	123
Finance cost		-1 914	-2 411	-400	-165	-4 276
Profit/ loss before income tax		5 784	-4 044	-242	-1 006	-4 030
Income tax		241	-18	79	-16	155
Profit/ loss for the period		6 025	-4 062	-163	-1 022	-3 875
Attributable to:
Equity holders of the parent		6 292	-4 012	-50	-990	-3 675
Non-controlling interest		-267	-50	-113	-32	-200
Total other comprehensive income
Net change in asset revaluation reserve		0	0	0	0	-115
Total comprehensive income for the period		6 025	-4 062	-163	-1 022	-3 990
Attributable to:
Equity holders of the parent		6 292	-4 012	-50	-990	-3 790
Non-controlling interest		-267	-50	-113	-32	-200
Earnings per share (Basic) EUR		0.11	-0.07	0.00	-0.02	-0.06

The full report can be found in the file attached.

Ann-Kristin Kuusik
CFO
+372 614 4920
prokapital@prokapital.ee

Attachment

• PKG_Q3_2025_ENG