Estonian real estate developer Hepsor posts slight net loss for H1

• Published date: 03 August 2022
• Publication title: LETA

TALLINN, Aug 3 (LETA--BNS) - The consolidated revenues of Estonian real estate developer Hepsor AS for the first six months of 2022 amounted to EUR 4 million, including EUR 2.7 million in the second quarter of 2022, and a net loss of EUR 300,000, including EUR 300,000 in the second quarter.

The sales of development projects still under construction will mostly take place in the second half of the year and therefore the revenue and profit from these projects will also be reflected in the results of the third and fourth quarters of the year. The group's revenues and profitability are directly dependent on the development cycle of the projects, which lasts about 24 to 36 months.

Sales revenue is only generated at the end of this cycle. The number of projects as well as the revenues and profitability may significantly vary from quarter to quarter depending on the length and timing of the development cycle. Therefore, some financial years or quarters may be weaker or stronger in terms of financial results. In evaluating the sustainability and the financial results of the real estate developer, the portfolio of the development projects and the three-year average financial results are the best criteria for evaluating the group's financial results, Hepsor told the stock exchange.

The group has generated revenues mainly from the sale of residential development projects. As of July 25, 2022, Hepsor has sold 32 apartments in completed projects in Latvia, including 13 apartments in the 4b Strelnieku development project, 18 apartments in the 9 Balozu development...