The first quarter of 2026 was an active period for Hepsor in terms of both sales and construction activity. The Group has a record number of apartments under construction and in sales. During the quarter, the Group made a total of 72 first-time home sales, of which 54 were homes under construction and 18 were homes in completed buildings. As a result of active construction activity, the Group's total assets increased to 97 million euros by the end of the first quarter, representing a 6% increase compared to the beginning of the reporting year. As at the end of the quarter, 428 new homes were under construction (31 March 2025: 152). Further growth in total assets is expected in the subsequent quarters, during which the Group plans to commence the construction of 207 new homes and 9,623 m² of new commercial premises.
Hepsor's consolidated sales revenue for Q1 2026 was 3.8 million euros (Q1 2025: 8.2 million euros) and the net loss was 0.8 million euros (Q1 2025: 0.1 million euros), of which the net loss attributable to the owners of the parent company was 0.8 million euros (Q1 2025: 0.2 million euros).
In the first quarter of 2026, the Group's revenue and profitability were affected by a decrease in the number of apartments delivered to customers compared to the same period last year – 18 apartments (Q1 2025: 42). The Group's operating expenses for the reporting quarter remained at the same level as in the comparable period.
Development projects under construction and for sale
In the first quarter of 2026, we continued with the construction and sale of projects in the development portfolio. As at 31 March 2026, the Group's inventory of completed apartments amounted to 10 units. Construction is scheduled to be completed and the handover of apartments to begin at the Manufaktuuri 12 development project in Tallinn in the third quarter of 2026, where a total of 49 new homes will be completed. In the fourth quarter, a residential building with 103 apartments will be completed at Dzelzavas 74C in Riga.
In the first quarter of 2026, the Group completed the initial sale of 72 homes under contracts of obligation and real rights, with a total value of 15 million euros, which is nearly twice as much as in the same period of 2025 (39 homes and 7 million euros). As at the end of the reporting quarter, the four-quarter rolling average of initial sales was 11 million euros (31 March 2025: 6 million euros). As at 31 March 2026, there were 11 projects in pre-sale and sale, of which 5 were completed development projects and 5 were under construction. In addition, we launched pre-sales for the first phase of the Paevälja quarter.
As at 31 March 2026, the Group has 428 new homes under construction (31 March 2025: 152), of which 201 (31 March 2025: 152) are in Estonia and 227 (31 March 2025: 0) are in Latvia.
Future outlook
In 2026, the Group plans to launch construction of five new development projects – three residential and two commercial real estate projects:
Phase I of the Paevälja quarter – in the second quarter of 2026, we will commence the construction of 88 apartments and 918 m² of commercial space at Paevälja 7, 9;
In Rae Parish, at Vana-Tartu mnt 49, we will begin construction of the Veski Centre. The building is planned to have 3,551 m² of leasable space, of which 88% is already covered by lease agreements;
Phase I of the Veidema quarter – at Ganību dambis 17A, Riga, the Group plans to commence a stock-office type development project;
In Riga, at Starta 17, we will begin construction of a residential development project, which will deliver a total of 255 new homes in multiple phases;
In Riga, we will start construction of Phase II of a residential development project at Braila iela 23, which will deliver 35 new homes.
Consolidated statement of financial position
in thousands of euros | 31 March 2026 | 31 December 2025 | 31 March 2025 |
Assets | |||
Current assets | |||
Cash and cash equivalents | 4,352 | 3,821 | 3,262 |
Trade and other receivables | 2,172 | 1,807 | 1,589 |
Current loan receivables | 0 | 0 | 200 |
Inventories | 62,601 | 58,938 | 60,355 |
Total current assets | 69,125 | 64,566 | 65,406 |
Non-current assets | |||
Property, plant and equipment | 240 | 260 | 324 |
Intangible assets | 0 | 0 | 2 |
Investment properties | 11,820 | 11,820 | 7,980 |
Financial investments | 8,568 | 7,837 | 7,244 |
Investments in joint ventures | 26 | 26 | 0 |
Non-current loan receivables | 6,521 | 6,521 | 2,584 |
Other non-current receivables | 988 | 805 | 384 |
Total non-current assets | 28,163 | 27,269 | 18,518 |
Total assets | 97,288 | 91,835 | 83,924 |
Liabilities and equity | |||
Current liabilities | |||
Loans and borrowings | 4,235 | 5,687 | 17,942 |
Current lease liabilities | 38 | 50 | 39 |
Prepayments from customers | 2,778 | 1,544 | 562 |
Trade and other payables | 7,746 | 6,832 | 6,184 |
Total current liabilities | 14,797 | 14,113 | 24,727 |
Non-current liabilities | |||
Loans and borrowings | 47,262 | 42,060 | 32,668 |
Non-current lease liabilities | 112 | 112 | 162 |
Other non-current liabilities | 8,804 | 8,472 | 4,765 |
Total non-current liabilities | 56,178 | 50,644 | 37,595 |
Total liabilities | 70,975 | 64,757 | 62,322 |
Equity | |||
Share capital | 3,913 | 3,913 | 3,855 |
Share premium | 8,917 | 8,917 | 8,917 |
Reserves | 385 | 385 | 385 |
Retained earnings | 13,098 | 13,863 | 8,445 |
Total equity | 26,313 | 27,078 | 21,602 |
incl. total equity attributable to owners of the parent | 20,032 | 20,858 | 20,531 |
incl. non-controlling interest | 6,281 | 6,220 | 1,071 |
Total liabilities and equity | 97,288 | 91,835 | 83,924 |
Consolidated statement of profit and loss and other comprehensive income
in thousands of euros | Q1 2026 | Q1 2025 |
Revenue | 3,844 | 8,206 |
Cost of sales (-) | -3,508 | -7,189 |
Gross profit | 336 | 1,017 |
Marketing expenses (-) | -277 | -279 |
Administrative expenses (-) | -395 | -412 |
Other operating income | 17 | 23 |
Other operating expenses (-) | -14 | -17 |
Operating profit (-loss) of the year | -333 | 332 |
Financial income | 186 | 49 |
Financial expenses (-) | -627 | -478 |
Profit before tax | -774 | -97 |
Corporate income tax | 0 | 0 |
Net profit (-loss) for the year | -774 | -97 |
Attributable to owners of the parent | -835 | -220 |
Non-controlling interest | 61 | 123 |
Other comprehensive income (-loss) | ||
Change in value of embedded derivatives with minority shareholders | 0 | -150 |
The effects of changes in foreign exchange rates | 9 | -161 |
Other comprehensive income (-loss) for the period | 9 | -311 |
Attributable to owners of the parent | 9 | -161 |
Non-controlling interest | 0 | -150 |
Comprehensive income (-loss) for the period | -765 | -408 |
Attributable to owners of the parent | -826 | -381 |
Non-controlling interest | 61 | -27 |
Earnings per share | ||
Basic (euros per share) | -0,21 | -0,06 |
Diluted (euros per share) | -0,21 | -0,06 |
The full Q1 2026 consolidated unaudited interim report is available on Hepsor's website: https://hepsor.ee/en/for-investors/stock/reports-2/
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. During our fifteen years of operation, we have created 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 a total of 37 development projects with a total area of 195 300 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.