The Management Board of Hepsor AS has prepared the audited annual report for 2024. Compared to the unaudited financial results published on 19 February 2025, there are no differences in the financial results in the audited report.
The consolidated sales revenue of Hepsor for the 2024 financial year amounted to 38.4 million euros (2023: 41.1 million euros).
The Group’s net profit in 2024 was 2.1 million euros (2023: 3.5 million euros). The net profit attributable to the owners of the parent company in the reporting year was 0.4 million euros (2023: 1.2 million euros).
In coordination with the Group’s Supervisory Board, the Management Board proposes to distribute 1,002 thousand euros (EUR 0.26 per share) in dividends to shareholders in 2025 from the profits of previous periods. Based on the share price as of 31 December 2024, this results in a dividend yield of 6.2%.
Development projects under construction and available for sale
In 2024, we delivered 194 homes to customers— 165 in Tallinn and 29 in Riga.
In Riga, at Ulbrokas 34, we started the construction of the StokOfiss 34 commercial building and continued the construction of the Annenhof Maja residential development with 40 apartments, which will be completed in early 2025.
In Tallinn, we began Hepsor’s largest development project to date, the construction and sale of the main building of the former Baltic Cotton Spinning and Weaving Factory located at Manufaktuuri 5. The project is being developed in stages. In the first stage, the construction of 150 new apartments is planned.
In the commercial building P113 Tervisemaja, owned by the affiliated company Hepsor P113 OÜ, the signing of new rental contracts continued. As of 31 December 2024, 77% of the building was covered by lease agreements, whereas by today, agreements have been signed for 84% of the total rental space.
Based on the Group’s business strategy, the Lembitu 4 property in Tallinn, which is intended to be used for the construction of a hotel with approximately 110 rooms, was sold in Q4 2024. Freed-up capital was used to finance new developments as well as to reduce interest costs at the Group level.
New projects in Tallinn and Riga
In September 2024, Hepsor acquired a new property in Tallinn, at Võistluse 7. It is a sLender-type apartment building, designed by researchers-architects at the Estonian Academy of Arts, built in the style of an early 20th century Lender wooden house. The building will be constructed entirely of wood, with the exception of the staircase in the centre of the building. At the heart of the project is environmental preservation and the utilisation of green technology solutions for climate resilience.
On 18 July 2024, Hepsor E18 SIA, a subsidiary of Hepsor Latvia OÜ, acquired a property at Eiženijas iela 18, in Riga. The plan is to develop two buildings there with a total of 54 apartments.
In December, Hepsor Latvia OÜ signed an option agreement to acquire a 50% stake in a real estate development company. The development company is planning to build 103 new homes at Dzelzavas 74c, in Riga.
Hepsor in Canada
To date, Hepsor has invested in five development projects in Toronto. In cooperation with business partners, the primary objective of the projects acquired in Canada’s largest city is to prepare a detailed plan and thereby achieve building rights for a total of around 3,000 new rental apartments.
In 2024, Hepsor made three new investments in Canada:
– a development project consisting of seven properties at 17-29 Glenavy Avenue, in Toronto;
– a development project consisting of 11 properties in High Park, located in downtown Toronto;
– a development project consisting of 17 properties on Brownville Avenue, in Toronto.
Vision for the future
In 2025, we intend to begin the construction and sale of up to five new development projects.
In Latvia, we are planning to begin the construction and sale of up to four projects. In total, 227 new homes will be built and sold in three residential projects. In the field of commercial buildings, we would like to begin the construction of a stock-office type development project in the Veidema Quarter at Ganibu Dambis 17a.
We will also be starting the next phase in the Manufaktuuri Quarter – the sale and construction of 49 new homes at Manufaktuuri 12.
Nevertheless, the declining interest rate environment allows us to look to the future with moderate optimism. The real estate business is a long process. That’s why we want to initiate and develop new projects, always analysing risks and opportunities over market cycles.
Consolidated statement of financial position
| in thousands of euros | 31 Dec 2024 | 31 Dec 2023 |
| Â | Â | Â |
| Assets | Â | Â |
| Current assets | Â | Â |
| Cash and cash equivalents | 6,249 | 7,604 |
| Trade and other receivables | 761 | 1,544 |
| Current loan receivables | 200 | 311 |
| Inventories | 64,141 | 77,439 |
| Total current assets | 71,351 | 86,898 |
| Non-current assets | Â | Â |
| Property, plant and equipment | 288 | 162 |
| Intangible assets | 2 | 4 |
| Investment properties | 7,980 | 0 |
| Financial investments | 6,424 | 2,005 |
| Non-current loan receivables | 2,428 | 1,729 |
| Other non-current receivables | 340 | 203 |
| Total non-current assets | 17,462 | 4,103 |
| Total assets | 88,813 | 91,001 |
| Liabilities and equity | Â | Â |
| Current liabilities | Â | Â |
| Loans and borrowings | 23,336 | 40,600 |
| Current lease liabilities | 52 | 40 |
| Trade and other payables and prepayments | 7,266 | 9,808 |
| Total current liabilities | 30,654 | 50,448 |
| Non-current liabilities | Â | Â |
| Loans and borrowings | 31,352 | 16,305 |
| Non-current lease liabilities | 162 | 29 |
| Other non-current liabilities | 4,635 | 2,058 |
| Total non-current liabilities | 36,149 | 18,392 |
| Total liabilities | 66,803 | 68,840 |
| Equity | Â | Â |
| Share capital | 3,855 | 3,855 |
| Share premium | 8,917 | 8,917 |
| Reserves | 385 | 385 |
| Retained earnings | 8,853 | 9,004 |
| Total equity | 22,010 | 22,161 |
| Incl. total equity attributable to owners of the parent | 20,912 | 20,993 |
| Incl. non-controlling interest | 1,098 | 1,168 |
| Total liabilities and equity | 88,813 | 91,001 |
Consolidated statement of profit and loss and other comprehensive income
| in thousands of euros | 2024 | 2023 |
| Â | Â | Â |
| Revenue | 38,397 | 41,135 |
| Cost of sales (-) | -31,635 | -34,067 |
| Gross profit | 6,762 | 7,068 |
| Marketing expenses (-) | -898 | -576 |
| Administrative expenses (-) | -1,802 | -1,472 |
| Other operating income | 449 | 166 |
| Other operating expenses (-) | -179 | -152 |
| Operating profit of the year | 4,332 | 5,034 |
| Financial income | 421 | 1,192 |
| Financial expenses (-) | -2,578 | -2,746 |
| Profit before tax | 2,175 | 3,480 |
| Income tax | -41 | 0 |
| Net profit for the year | 2,134 | 3,480 |
| Â Â Â Attributable to owners of the parent | 423 | 1,185 |
| Â Â Â Non-controlling interest | 1,711 | 2,295 |
| Â | Â | Â |
| Other comprehensive income (loss) | Â | Â |
| Â | Â | Â |
| Changes related to change of ownership | -313 | 286 |
| Change in value of embedded derivatives with minority shareholders | -1,874 | -2,053 |
| Exchange rate differences from foreign entities | -103 | 0 |
| Other comprehensive income (loss) for the period | -2,290 | -1,767 |
| Â Â Â Attributable to owners of the parent | -504 | -58 |
| Â Â Â Non-controlling interest | -1,786 | -1,709 |
| Comprehensive income (loss) for the period | -156 | 1,713 |
| Â Â Â Attributable to owners of the parent | -81 | 1,127 |
| Â Â Â Non-controlling interest | -75 | 586 |
| Earnings per share | Â | Â |
| Â Â Â Basic (euros per share) | 0.11 | 0.31 |
| Â Â Â Diluted (euros per share) | 0.11 | 0.31 |
Please see full version of Hepsor AS audited 2024 annual report:Â https://hepsor.ee/en/for-investors/stock/reports-2/.
The annual report will be presented for approval to the General Meeting of Shareholders.Â
Henri Laks
Member of the Management Board
Phone: +372 5693 9114
e-mail: [email protected]
Hepsor AS (www.hepsor.ee) is a developer of residential and commercial real estate. The Group operates in Estonia, Latvia and Canada. During our thirteen years of operation, we have created 2,076 homes and nearly 36,300 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 24 development projects with a total area of 172,500 m2.
Attachments
- Hepsor_2024_ENG
- Hepsor AS ESEF report 2024 audited eng
