Ovaro Kiinteistösijoitus (OVARO) Q1 2025 earnings summary

Executive summary

• Net loss of €802 thousand in Q1 2025, compared to a profit of €60 thousand in Q1 2024, driven by higher property taxes and maintenance costs, especially in the Kukkula area.

• Revenue declined 12.4% year-over-year to €1,085 thousand due to lower rental income following previous asset sales.

• Investment activity continued in key development projects, with €1.68 million invested during the quarter.

• Company signed a final purchase agreement for a Kerava plot and a letter of intent with Kesko for retail development.

• Guidance for 2025 maintained: full-year result expected to improve over 2024.

Financial highlights

• Operating loss of €465 thousand in Q1 2025, down from a €483 thousand profit in Q1 2024.

• Net rental income turned negative at -€179 thousand (Q1 2024: €546 thousand), mainly due to increased property taxes and maintenance costs.

• Earnings per share (EPS) was -€0.10 (Q1 2024: €0.01).

• Cash and cash equivalents at quarter-end were €0.7 million, down from €7.6 million a year earlier.

• Net cash flow from operations was -€224 thousand (Q1 2024: €310 thousand).

Outlook and guidance

• 2025 full-year result is expected to be better than 2024, despite a weak Q1.

• Market environment is gradually improving, with lower interest rates and rising housing demand in growth centers.