In its audited Annual Report for 2025, the Group disclosed that, as of 31 December 2025, the equity-to-assets ratio had temporarily decreased to 17.91%. In the report, the Management Board explained the reasons behind this development and confirmed that the equity-to-assets ratio would recover to above 20% by the end of the first half of 2026.
Everaus Kinnisvara's Management Review for the first half of 2026 confirms that, as at 30 June 2026, the Company complied with all financial covenants set out in the bond terms, including:
- the equity-to-assets ratio as of 30 June 2026 was 20.01%;
- the loan-to-cost ratio as of 30 June 2026 was 60.47% (the maximum ratio permitted under the bond terms is 75%). The ratio has been calculated based on active development projects by dividing the total amount of interest-bearing loans related to those projects by the total project costs of the respective projects;
- the restriction on dividend distributions has been complied with.
The audited Annual Report for 2025 confirms that the temporary decline of the equity-to-assets ratio below 20% does not constitute an Event of Default under Clause 8 of the bond terms. Events of Default are primarily defined as failures to meet payment obligations relating to the bonds, as well as circumstances related to the issuer's bankruptcy, restructuring, insolvency or liquidation. As of 30 June 2026, the Company complied with all financial covenants set out in the bond terms.
In the audited Annual Report, the auditor did not identify any Event of Default under the bond terms and did not consider it necessary to reclassify the EUR 8 million bond liability as a current liability. The bonds continue to be recognised as a non-current financial liability in accordance with the applicable bond terms and the relevant accounting standards.
The Company's equity ratio at the end of 2025 was primarily affected by more conservative fair value assessments of investment properties made during the audit, which had no impact on the Group's cash flows. The ratio was also influenced by the normal timing of development projects, with the majority of property handovers scheduled for the second half of 2026, as well as by the repurchase of treasury shares for the establishment of the employee share option programme.
All activities disclosed in the Company's Description have been implemented in accordance with the objectives described therein, and the Company's operations continue in line with its business plan.
Additional information: Janika Roots, CFO of Everaus Kinnisvara, janika@everaus.ee