The Management Board of Hepsor AS has prepared the audited annual report for 2025. Compared to the unaudited financial results for 2025 published on 18 February 2026, there are no differences in the financial results in the audited report.
In coordination with the Group's Supervisory Board, the Management Board proposes to distribute dividends to shareholders in 2026 from retained earnings in the amount of 1,056 thousand euros (0.27 euros per share). Based on the share price as of 31 December 2025, this results in a dividend yield of 4.3%.
The Group's consolidated revenue for 2025 was 35.4 million euros (2024: 38.4 million euros). In 2025, the Group sold 141 new homes under real rights agreements (2024: 194 homes). In addition, Hepsor Group companies Hepsor Fortuuna OÜ and Hepsor N450 OÜ sold properties located at Paevälja 7 and 9 and Narva mnt 150, 150a to the Group's 50% joint venture Hepsor SOF OÜ. The total value of the transactions was 9.0 million euros plus VAT, of which 7.2 million euros is recognised as revenue in the reporting period.
The Group's net profit for 2025 was 1.0 million euros (2024: 2.1 million euros). Net profit attributable to owners of the parent company was 0.4 million euros (2024: 0.4 million euros). Profitability in 2025 was affected by the lower number of apartments handed over to customers compared to the previous year. In addition, profitability was negatively impacted by a lower margin on sold projects, which was 16.9% in 2025 (2024: 17.8%), and increased marketing expenses for development projects, which amounted to 1.1 million euros (2024: 0.7 million euros). The increase in marketing expenses is mainly related to the higher number and volume of projects on sale, leading to more active sales and marketing activities.
On 21 November 2025, the first series of Hepsor AS bond programme was successfully completed. The initial issue size was 6 million euros, but the offering was oversubscribed by 1.4 times, and due to strong investor demand, the size was increased to 8 million euros. A total of 1,079 investors from Estonia, Latvia and Lithuania participated. The bonds carry a fixed annual interest rate of 9.50%.
Residential development projects
In 2025, the Group expanded its development portfolio with three new properties, the development of which includes approximately 700 apartments and around 2,500 m² of commercial space in several stages. The largest addition to the development portfolio was the property at Manufaktuuri 3, Tallinn, where approximately 300 apartments are planned to be built in three stages. According to the detailed plan, the property also allows for the construction of a high-rise building of up to 60 floors.
During the reporting year, the Group completed first-time sales of 185 homes under the Law of Obligations or real rights agreements, with a total volume of 36.1 million euros, nearly twice as much as in 2024 (109 homes and 19.8 million euros). Sales growth was supported by several projects previously in the preparation phase reaching the construction phase, increasing supply and broadening options for different customer segments. Growth was also supported by a stable financial environment, stabilised interest rates, and a positive economic growth outlook according to the central banks of Estonia and Latvia.
As of 31 December 2025, the Group had 428 homes under construction (31 December 2024: 192), which is 223% more compared to the previous period.
Commercial real estate
In 2024, construction began on a multifunctional commercial building, StokOfiss U34, at Ulbrokas 34 in Riga. The building has 8,740 m² of leasable space. An occupancy permit was issued in July 2025. As of 31 December 2025, 74% of the total leasable area was covered by lease agreements.
In 2025, the Group entered into long-term lease agreements with Maxima Eesti OÜ and GYM Eesti OÜ and plans to begin construction of a new business centre in 2026 at Vana-Tartu mnt 49, Rae Parish. The planned two-storey business centre will have approximately 3,500 m² of leasable space.
As of 31 December 2025, 84% of the Group's completed commercial real estate portfolio was covered by lease agreements.
Canada
Hepsor's activities in Canada focus on supporting zoning processes for development projects to achieve greater building rights. As of 31 December 2025, the Group had invested in five development projects. In August 2025, the Toronto City Council approved building rights for Hepsor's first development project, Weston Road. The decision allows for the construction of two apartment buildings with 35 and 39 floors. During the zoning process, the permitted construction volume was increased from 27,000 m² to 62,000 m².
Outlook
In 2026, the Group plans to begin construction of new development projects, including more than 200 new homes and approximately 9,600 m² of commercial space. The Group will continue making new investments, focusing primarily on expanding its development portfolio in Latvia, but also in Estonia where suitable opportunities arise. Additional funding may be raised through the bond programme if necessary. The Group will also continue its annual dividend payments to shareholders.
Looking ahead, there is reason for optimism as sales volumes in our home markets are recovering. This has also supported first-time sales of our projects, with growth driven both by increased supply resulting from the launch of new developments and by continued strong demand for new apartments in our home markets. While at the end of 2024 the rolling four-quarter average of first-time sales was 4.9 million euros, by the end of 2025 it had increased to 9.0 million euros, representing growth of 84%.
These factors provide a strong foundation for the company's continued growth and sustainable development.
Consolidated statement of financial position
| in thousands of euros | 31 Dec 2025 | 31 Dec 2024 |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 3,821 | 6,249 |
| Trade and other receivables | 1,807 | 761 |
| Current loan receivables | 0 | 200 |
| Inventories | 58,938 | 64,141 |
| Total current assets | 64,566 | 71,351 |
| Non-current assets | ||
| Property, plant and equipment | 260 | 288 |
| Intangible assets | 0 | 2 |
| Investment properties | 11,820 | 7,980 |
| Financial investments | 7,837 | 6,424 |
| Investments in joint ventures | 26 | 0 |
| Non-current loan receivables | 6,521 | 2,428 |
| Other non-current receivables | 805 | 340 |
| Total non-current assets | 27,269 | 17,462 |
| Total assets | 91,835 | 88,813 |
| Liabilities and equity | ||
| Current liabilities | ||
| Loans and borrowings | 5,687 | 23,336 |
| Current lease liabilities | 50 | 52 |
| Trade and other payables and prepayments | 8,376 | 7,266 |
| Total current liabilities | 14,113 | 30,654 |
| Non-current liabilities | ||
| Loans and borrowings | 42,060 | 31,352 |
| Non-current lease liabilities | 112 | 162 |
| Other non-current liabilities | 8,472 | 4,635 |
| Total non-current liabilities | 50,644 | 36,149 |
| Total liabilities | 64,757 | 66,803 |
| Equity | ||
| Share capital | 3,913 | 3,855 |
| Share premium | 8,917 | 8,917 |
| Reserves | 385 | 385 |
| Retained earnings | 13,863 | 8,853 |
| Total equity | 27,078 | 22,010 |
| Incl. total equity attributable to owners of the parent | 20,858 | 20,912 |
| Incl. non-controlling interest | 6,220 | 1,098 |
| Total liabilities and equity | 91,835 | 88,813 |
Consolidated statement of profit and loss and other comprehensive income
| in thousands of euros | 2025 | 2024 |
| Revenue | 35,414 | 38,397 |
| Cost of sales (-) | -29,778 | -31,635 |
| Gross profit | 5,636 | 6,762 |
| Marketing expenses (-) | -1,334 | -898 |
| Administrative expenses (-) | -1,828 | -1,802 |
| Other operating income | 1,155 | 449 |
| Other operating expenses (-) | -270 | -179 |
| Operating profit of the year | 3,359 | 4,332 |
| Financial income | 712 | 421 |
| Financial expenses (-) | -2,685 | -2,578 |
| Profit before tax | 1,386 | 2,175 |
| Income tax | -347 | -41 |
| Net profit for the year | 1,039 | 2,134 |
| Attributable to owners of the parent | 399 | 423 |
| Non-controlling interest | 640 | 1,711 |
| Other comprehensive income (loss) | ||
| Changes related to change of ownership | -81 | -313 |
| Changes in subsidiaries' equity | 249 | 0 |
| Change in value of embedded derivatives with minority shareholders | -714 | -1,874 |
| Exchange rate differences from foreign entities | -302 | -103 |
| Other comprehensive income (loss) for the period | -848 | -2,290 |
| Attributable to owners of the parent | 491 | -504 |
| Non-controlling interest | -1,339 | -1,786 |
| Comprehensive income (loss) for the period | 191 | -156 |
| Attributable to owners of the parent | 890 | -81 |
| Non-controlling interest | -699 | -75 |
| Earnings per share | ||
| Basic (euros per share) | 0.10 | 0.11 |
| Diluted (euros per share) | 0.10 | 0.11 |
Please see full version of Hepsor AS audited 2025 annual report: https://hepsor.ee/en/for-investors/stock/reports-2/.
The annual report will be presented for approval to the General Meeting of Shareholders.
Martti Krass
Member of the Management Board
Phone: +372 5692 4919
e-mail: martti@hepsor.ee
Hepsor AS (www.hepsor.ee) is a developer of residential and commercial real estate. The Group operates in Estonia, Latvia, and Canada. In fourteen years of operation, we have created over 2000 homes and nearly 44,000 m2 of commercial space. Hepsor is the first developer in the Baltic states to implement a number of innovative engineering solutions that make the buildings it constructs more energy efficient, and thus more environmentally friendly. The company's portfolio includes 28 development projects with a total area of 196,650 m2. In addition, the Group is active in five projects in Canada, where the main activity is the preparation of detailed spatial plans for land, thereby achieving greater building rights.
