Everaus Kinnisvara AS publishes its interim report for the first half of 2025. The report is available as an appendix to this announcement, on the company’s website (https://everaus.ee/en/reports-and-stock-market-announcements/), and on the Nasdaq Baltic stock exchange website.
EVERAUS KINNISVARA
Everaus Kinnisvara is a developer of residential and commercial real estate that celebrates its 10th year of operation this year. Everaus Kinnisvara operates in Estonia, primarily in Harju County, but is also expanding southward.
Over ten years of operation, Everaus Kinnisvara has developed comprehensive living environments on nearly 30 hectares. The residential real estate development portfolio includes six projects spanning over 60 hectares with 600+ units. Three of these are under construction, and three are in the design or planning process. The commercial real estate development and rental portfolio consist of eight projects with a total building area of over 80,000 m². Four of these are completed and leased out, and four are under construction or in the planning process. Everaus Kinnisvara's development portfolio has enough capacity for the next 3–4 years.
Everaus Kinnisvara has earned its reputation and recognition through a strong focus on energy efficiency, design, and holistically conceived environments. Everaus Kinnisvara is a trendsetter and pioneer, and the only real estate developer in Estonia whose nearly all completed residential developments have received high recognition in national home competitions. Due to its forward-looking choices, the developer's projects have been repeatedly awarded the title of "first of its kind."
The company, which began in 2015 as a developer of private houses, has grown over ten years of operation into a developer with the most diverse portfolio. This strategic diversification gives the company a significant competitive advantage, making Everaus Kinnisvara resilient to market risks.
While many market participants focus on either residential or commercial real estate, Everaus Kinnisvara has chosen a more ambitious direction, developing in both sectors. Residential real estate projects are intended for sale. Commercial real estate is developed as cash-flow projects for rental purposes to diversify risks, and the constructed commercial buildings remain in the developer's ownership.
Everaus Kinnisvara is also made strong against market risks by the diversity of its development projects within the sector itself. While several large-scale developers position themselves solely as apartment building developers or exclude the development of private houses, Everaus Kinnisvara's portfolio includes apartment buildings, terraced houses, semi-detached houses, and private homes, as well as office buildings, warehouse and stock-office spaces, and mini-storage facilities, in addition to private residential plots and serviced apartments.
The chosen strategy ensures sustainability and growth even when one market segment is in a decline cycle, but others are in a growth cycle. The diversity of project also allows for the more flexible reallocation of capital, enabling investment into the most profitable projects at any given time.
Everaus Kinnisvara AS launched its first-ever public bond offering this May, issuing 5,000 bonds with a total volume of €5 million as part of the first series of its bond program. The offering, with a base volume of €3 million, was 3.16 times oversubscribed. The subscription involved 1,601 investors from Estonia, Latvia, and Lithuania, who subscribed for bonds in the range of €1,000 to €500,000, with a total volume reaching €9,474,000. The issued bonds have been listed on the Nasdaq Tallinn alternative market, First North, since 05.06.2025 (ISIN: EE0000000875).
KEY ECONOMIC DEVELOPMENTS IN THE FIRST HALF-YEAR
The first half of 2025 was a period of recovery in the Estonian economic environment, characterized by the European Central Bank (ECB) lowering its key interest rates, alongside domestic factors like inflation growing faster than the Eurozone and continued wage growth.
In the first half of the year, the 6-month Euribor continued its downward trend, falling to 2.05% by the end of the half-year. Interest rates are forecast to stabilize or see a moderate decline in the second half of the year.
The domestic economic area was characterized by faster price growth (4.8% in the second quarter) than in the Eurozone, which was mitigated by the growth in the average gross wage. According to Statistics Estonia, the wage growth exceeded the price increase, changing by 5.9% in the second quarter compared to the same period last year. The unemployment rate fell to 7.8% in the second quarter.
The consumer confidence remained at a very low level, indicating continued caution and the postponement of purchasing decisions. However, a recovery in the optimism of exporters and an increase in interest from foreign investors were noticeable. The positive sentiment among companies and investors suggests that the most difficult period has passed. Positive signals regarding external demand will help improve the low domestic consumer confidence.
KEY DEVELOPMENTS IN THE REAL ESTATE MARKET IN THE FIRST HALFYEAR AND THE NEAR FUTURE
The real estate market in the first half of 2025 was caught between two forces: an improving financial environment (the decline in Euribor) made purchasing more favorable, but low consumer confidence held back the number of transactions and overall market activity from stronger growth. The repeated lowering of key interest rates in the first halfyear gave the market hope that the cost of borrowing would not significantly increase again, which supported long-term purchasing decisions. As a result, the market remained moderately active and showed a monthly upward trend.
According to the Land and Spatial Planning Agency's data, a total of 10,395 real estate transactions were concluded in Q2 2025, representing a 15% increase compared to Q1. Specifically, 657 new apartments were sold in Q2. In Harju County, the number of first-time sales was 465, including 301 in Tallinn. Compared to the same quarter last year, the price level of new apartments rose by 7%, and compared to the previous quarter, it rose by 9%. The price level for resale apartments in the capital remained the same year-on-year but grew by 3% compared to the previous quarter.
In the first half of the year, demand for terraced houses, semi-detached houses, private homes, and residential plots increased significantly in the immediate vicinity of Tallinn. This was evident both in signed contracts and in the interest shown in new projects. Commercial building development remained active in the first half-year. The warehouse and logistics sector was also active. The rental offering for commercial space in Harju County and Tallinn has increased by 6% compared to a year ago. Historically, however, the rental supply for commercial space is below the long-term average. Vacancy primarily increased in older buildings.
In the second half-year, the economy is expected to continue its recovery, but the real estate market and the demand for residential property will still depend on external factors, primarily developments in interest rates, geopolitics, the tax environment, and consumer confidence. Regarding interest rates and real wages, the expectation is that improvement will continue in the second half-year, supporting an increase in real estate affordability. However, the growth in real estate affordability will be slowed by tax policy and the persistently high inflation. According to the latest forecast by the Bank of Estonia, the average inflation for 2025 will be approximately 5.4%.
Since the economy is showing signs of improvement and the Bank of Estonia's latest economic forecast anticipates economic growth exceeding 3% starting in 2026, real estate developers must be proactive today and launch new development projects. Statistics show that many market participants have done so, which is why the number of new development offerings has grown and will likely increase further in the near future. As input costs are also rising, a reduction in real estate prices can no longer be expected. In a highly competitive situation, prices will not rise significantly, but since the market is in the hands of strong developers, a downturn is not anticipated. Good buying opportunities can still be found, but unfortunately, due to the pressure from rising input costs, these will become increasingly scarce.
KEY DEVELOPMENTS IN DEVELOPMENT PROJECTS IN THE FIRST HALF-YEAR
In cooperation with Maru Ehitus AS, the construction of the Haabersti mini-storage complex has begun. Upon the opening of the Haabersti mini-storage complex at the end of the year, Everaus Kinnisvara will become the largest provider of mini-storage rental services in the Baltics. In addition to the 335 mini-storage units in Peetri, the developer's rental portfolio will gain 342 new ministorage units in the rapidly growing residential area of Haabersti. https://everausminilaod.ee
We signed a contract with OÜ NOBE for the construction of Kindluse Kodu Phase I (36 homes) and Luige Kodud Phases II and III (60 homes), and construction has begun. Simultaneously, the construction of the infrastructure for the subsequent phases of Kindluse Kodu continued. By the end of the first half-year, 50% of Kindluse Kodu Phase I and 30% of Luige Kodud Phase II were sold. These homes will be completed in 2026. Additionally, 24 residential plots have been sold in Kindluse Kodu. https://kindlusekodu.everaus.ee; https://luigekodud.everaus.ee
The design of the Kangru Kodu terraced houses project with completed infrastructure continued, alongside preparation for construction and sales. Sales and construction are planned to begin this autumn. The residential plots are already on sale. https://kangrukodu.everaus.ee/
In cooperation with Maru Ehitus AS, the construction of the Lennuradari warehouse complex extension (four new buildings) has begun. Two of these will be completed at the end of the year, and the remaining two in the spring of next year. The developer's rental portfolio will gain 56 modern rental spaces with a good logistical location, in addition to the existing 42 warehouse and stock-office units. https://everaus.ee/arikinnisvara/lennuradari-arihooned/
We acquired a 100% stake in the Uus-Peetri development project located in Rae municipality. The Uus-Peetri development project spans a 13.1-hectare area and includes approximately 59,000 m2 of residential space (terraced houses and apartment buildings) and 40,000 m2 of commercial space. It also encompasses the creation of green areas and infrastructure to promote community activities, such as the long-awaited "Elamustemaja" (Experience House/Community Center) for Rae municipality.
In the projects completed in 2024 (Kindlusepealse Villad and Luige Kodud Phase I), as of 30.06.2025, only one single-family house (out of 16) and four apartments (out of 28) remained unsold, respectively. The remaining unsold residential plots in Kindluse Kodu and Kangru Kodu were 25 (out of 49) and 13 (out of 16), respectively.
FIRST-HALF FINANCIAL RESULTS AND FUTURE OUTLOOK
The first half of 2025 has progressed according to forecasts. This year is a capitalintensive development year for the group, during which no major residential projects will be completed. As a result, sales revenue has been minimal: sales revenue for the first half of 2025 was 3,901 thousand euros, which constitutes approximately 50% of the forecasted annual revenue. Net profit for the first half was 102 thousand euros, which is in line with forecasts that 2025 will be marginal in terms of profitability.
The loan burden has increased due to development activities, rising from 28 million euros at the end of 2024 to 35 million euros at the end of the first half of 2025. The volume of assets has increased in the same proportion.
In the first half of 2025, the group sold the Raeküla Kodu development and bought out the holding in the associate company Everaus Scandium OÜ (new business name Everaus Uus Peetri OÜ), becoming the 100% owner of the company. Everaus Uus Peetri OÜ owns property in the Rae rural municipality, Peetri small town, where the Uus-Peetri residential and business town is planned to be established on an area of approximately 13 hectares. The development area is currently in the planning procedure, and according to forecasts, the detailed plan will be established within three years. After the detailed plan is established, the value of the development is approximately 18 million euros.
Commercial real estate constituted approximately 30% of the balance sheet volume as of 30.06.2025 (30.06.2024: 23%) and generated a total cash flow of 415 thousand euros in the first half of 2025 (H1 2024: 138 thousand euros).
Construction activity will continue in the second half of 2025. Three commercial buildings will be completed at the end of 2025: the Haabersti mini-storage complex and the expansion of the Lennuradari storage complex in the immediate vicinity of Tallinn airport. The completion of the commercial buildings will increase the cash flow from commercial real estate starting in 2026.
In the first half of 2026, the homes of the Kindluse Kodu Phase I and Luige Kodud Phase II will be completed. Since the developments currently under construction will be completed next year, both the revenue growth and profit expectation are deferred to 2026. In the first half of 2025, contracts under the law of obligations have been concluded in these developments with a financial volume of 6,467 thousand euros. Contracts under the law of obligations that are not transferred under a contract in rem within the same period are reported on the balance sheet as advance payments from buyers.
Janika Roots
CFO
Everaus Kinnisvara AS