Arco Vara (ARC1T) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw a gradual recovery in the real estate market, with stable conditions and declining interest rates supporting development and buyer interest.

• Major milestone: acquisition of Luther Quarter in Tallinn, doubling the asset base and strengthening equity.

• Construction began on Soodi 6 and Spordi projects; Rannakalda and Kuldlehe sales progressed, with most units sold.

• Botanica Lozen in Bulgaria neared completion; padel center received occupancy permit.

• Share issue completed to finance Luther Quarter, maintaining balanced capital structure.

Financial highlights

• H1 2025 revenue: €3.1m, up €1.16m year-over-year; Q2 2025 revenue: €1.39m (Q2 2024: €0.94m).

• H1 2025 operating profit: €0.27m (H1 2024: -€0.31m); net loss: -€0.04m (H1 2024: -€0.69m).

• Q2 2025 net loss: -€0.15m (Q2 2024: -€0.34m); EPS Q2 2025: -€0.01.

• Total assets at 30 June 2025: €79.0m, nearly doubled from a year earlier due to new project acquisitions.

• Net debt at period end: €33.3m, up €19.0m year-over-year, mainly from Luther Quarter acquisition.

Outlook and guidance

• 2025 revenue forecast: €9.5m; net profit forecast: -€0.1m.

• 2026 revenue forecast: €21.7m; net profit forecast: -€1.8m.

• Focus for Q3: complete Kuldlehe sales, sell at least six more Rannakalda units, advance Luther planning, and continue construction at Spordi and Soodi 6.