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Pro Kapital Council approved Consolidated Interim Report for I Quarter and 3 Months of 2022 (Unaudited)

05/21/2022 | 10:46am


CEO summary

The first quarter of 2022 has been an atypical one. The Ukraine war started in February caused some concerns due to the geopolitical risks perceived in the area. However, after the initial (and understandable) concerns, the markets showed a good resiliency from the demand side, and we have seen no drop in the real estate prices and in the interest shown by potential buyers of real estate assets. The construction market still poses some challenging issues, due to the increase in cost of materials caused by the complications related to Covid-19 and relative problems in the supply chain and the impossibility of obtaining materials from the regions affected by the war.

Real estate development

In Tallinn, we have continued construction of Kindrali Houses and Kalaranna projects. In the first quarter of 2022 we continued handing over apartments in Kalaranna project, where completion of eight buildings with the total of 240 apartments will be achieved. Today we are handing over apartments in the Kalaranna 8/3 and 8/4 buildings and we have reservations or presales concluded for all business premises and for 99% of apartments in this phase of the project.

Last year we started construction of the new project Kindrali Houses in Kristiine City, where three building-complexes with the total of 195 apartments will be raised. In this project we had booked or presold more than half of the apartments before signing the construction agreement. Today we have no apartments available in Kindrali Houses.  Two of the buildings are nearing completion end of May and June and the contractor is starting to hand over the apartments on the fourth week of May.

In Riga we are selling our ready luxury product River Breeze Residence and started the tendering process for the further development of Kliversala Residential Quarter - Blue Marine. We have received several offers from construction companies and are in the process of identifying the best option.

In Vilnius, we only have 4 unsold apartments in our Šaltiniu Namai Attico project (including one which serves as a showroom). The real estate market has had a great run in 2021 and we saw a great deal of interest for our luxury properties, achieving some of the highest prices per square meter in all the local market. We received some offers from the construction companies for the following phase of city villas and a commercial building and we aim to start construction works this summer.

Hotel operations

The Covid-19 pandemic had a strong impact on all the tourism sector, but luckily the German government has provided a great deal of support in terms of subsidies provided to PK Parkhotel Kurhaus in Bad Kreuznach.

We are in the process of renovation of the second half of the rooms (first half has been renovated 5 years ago), which will be completed by the end of the year. The works will also have the added benefit of converting an unused area into 7 standard rooms and creation of a luxurious suite with private sauna and terrace, which will greatly improve the overall prestige of the hotel.

We have signed a preliminary agreement to buy a 380 keys hotel in Sicily (Domina Zagarella Sicily), located near the biggest city of the island, Palermo. We are currently conducting an in-depth due diligence of the asset and we believe this may be a great opportunity to expand our portfolio.

We are satisfied with the results of the first quarter although they were influenced by one- time expenses in amount of 318 thousand euros related to change of the management. In the following months we plan on continuing the construction works of ongoing developments and prepare for the upcoming phases. The real estate development is going well, the market is strong, and we will continue implementing our strategy of creating long-term value for our shareholders and for the communities that we aim to develop in a sustainable, comfortable and aesthetically pleasing way.

Edoardo Preatoni

Key financials

The total revenue of the Company in the first quarter of 2022 was 7.9 million euros, having increased by 42% compared to the reference period (2021 3M: 5.6 million euros). The real estate sales have been influenced by handing over completed apartments in Kalaranna District.

The gross profit in the first quarter of 2022 increased by 61% amounting to 2.6 million euros compared to 1.6 million euros in 2021.

The operating result in 2022 has decreased to 989 thousand euros profit comparing to 1.8 million euros during the same period in 2021. Higher profit in 2021 was affected by one-time sales of investment property and related revenue.  

The net result for the first three months of 2022 was 251 thousand euros loss, comparing to 377 thousand euros profit (continuing operations) in the reference period.

Cash used in operating activities during first quarter of 2022 was minus 3.1 million euros comparing to 1.3 million euros generated during the same period in 2021.

Net assets per share on 31 March 2022 totalled to 0.75 euros compared to 0.13 euros on 31 March 2021.

Key performance indicators

 2022 3M2021 3M2021 12M
Revenue, th EUR7 9165 58043 095
Gross profit, th EUR2 5581 59110 576
Gross profit, %32%29%25%
Operating result, th EUR 9891 78639 821
Operating result, %12%32%28%
Net result, th EUR-251 -2 11229 757
Net result, %-3%-38%69%
Earnings per share, EUR0.00-0.030.52

Total Assets, th EUR117 371185 287116 027
Total Liabilities, th EUR 74 779177 82973 184
Total Equity, th EUR42 5927 45842 843
Debt / Equity *1.7623.841.71
Return on Assets, % **-0.2%0.2%23.7%
Return on Equity, % ***-0.6%5.1%113.5%
Net asset value per share, EUR ****0.750.130.76

*debt / equity = total debt / total equity
**return on assets = net profit/loss / total average assets
***return on equity = net profit/loss / total average equity

****net asset value per share = net equity / number of shares


Consolidated interim statement of financial position

in thousands of euros31.03.202231.03.202131.12.2021
Current assets   
Cash and cash equivalents7 65013 3319 626
Current receivables2 0711 542802
Inventories59 36061 48157 533
Total current assets69 08176 35467 961
Non-current assets   
Non-current receivables203 71521
Property, plant and equipment6 8666 6786 754
Right-of-use assets173357202
Investment property40 87197 81440 734
Intangible assets360369354
Total non-current assets48 290108 93348 065
TOTAL ASSETS117 371185 287116 026
Current liabilities   
Current debt16 131104 3733 955
Customer advances11 47710 28412 419
Current payables7 25324 011 7 297
Tax liabilities1161 2801 143
Short-term provisions714471713
Total current liabilities35 691140 41925 527
Non-current liabilities   
Long-term debt 37 90933 42546 455
Other non-current payables202 63820
Deferred income tax liabilities1 1341 1511 133
Long-term provisions2519648
Total non-current liabilities39 08837 41047 656
TOTAL LIABILITIES74 779177 82973 183
Equity attributable to owners of the Company   
Share capital in nominal value11 33811 33811 338
Share premium1 7485 6611 748
Statutory reserve01 1340
Revaluation reserve2 9842 9842 984
Retained earnings26 773-8 0310
Profit/ Loss for the period-251-1 95126 773
Total equity attributable
 to owners of the Company
42 59211 13542 843
Non-controlling interest0-3 6770
TOTAL EQUITY42 5927 45842 843

Consolidated interim statements of comprehensive income

in thousands of euros2022 3M2021 3M2021 12M
Operating income   
Revenue7 9165 58043 095
Cost of goods sold-5 358-3 989-32 519
Gross profit2 5581 59110 576
Marketing expenses-114-125-502
Administrative expenses-1 449-992-5 592
Other income01 33235 616
Other expenses-6-20-278
Operating profit/ loss9891 78639 820
Financial income116
Financial expense-1 226-1 393-5 964
Profit / loss before income tax-23639433 862
Income tax-15-1710
Net profit / loss from continuing operations-25137733 872
Profit from discontinued operations0- 2 489-4 115
Net profit / loss for the period-251-2 11229 757
Attributable to:   
            Equity holders of the parent                                                -251-1 95029 757
            Non-controlling interest0-1620
Total comprehensive income / loss for the year-251-2 11229 757
Attributable to:   
            Equity holders of the parent-251-1 95029 757
            Non-controlling interest0-1620
Earnings per share (continuing operations) €
Earnings per share for the period €0.00-0.030.52

Angelika Annus
+372 614 4920










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