The first nine months of 2026 were characterised by active development and substantial investments for Hepsor. The Group has reached the most capital-intensive stage of its investment cycle, as reflected in the 44% year-on-year increase in total assets. The new and larger-scale investment cycle, which began in 2025, provides a solid foundation for the Group's future growth. The investments made are expected to be gradually reflected in the Group's financial results from the fourth quarter of 2026 onwards, as development projects enter the sales and handover phase.
The financial results for the reporting period were primarily affected by the limited inventory of completed apartments available for sale. The Group started the year with 28 completed apartments, of which only one remains unsold to date. By the publication date of this report, Hepsor had commenced the handover of apartments in the M12 development project in the Manufaktuuri Quarter, marking the end of a nearly two-year period during which no new residential buildings were completed by the Group in Estonia.
As at 30 September 2026, the potential sales revenue of Hepsor’s development portfolio amounted to 535 million euros (30 September 2025: 385 million euros), of which residential real estate accounted for 86% (30 September 2025: 82%) and commercial real estate for 14% (30 September 2025: 18%).
The Group's sales revenue for the first nine months of 2026 was 7.6 million euros (9 months 2025: 30.9 million euros), and revenue for the third quarter of the reporting year was 1.3 million euros (Q3 2025: 8.8 million euros).
The Group's net loss for the first nine months of the reporting year was 3.2 million euros (9 months 2025: net profit of 1.5 million euros), of which the net loss attributable to the owners of the parent was 2.9 million euros (9 months 2025: net profit 0.9 million euros).
The Group's net loss for the third quarter amounted to 1.0 million euros (Q3 2025: net profit of 1.2 million euros), of which the loss attributable to owners of the parent company amounted to 1.0 million euros (Q3 2025: net profit of 1.1 million euros).
The Group’s total assets increased by 44% year-on-year, reaching 116.0 million euros as at 30 September 2026 (30 September 2025: 80.7 million euros).
In September, Hepsor carried out its second public bond offering under its 20 million euro bond programme. A total of 974 investors subscribed for bonds worth 7.1 million euros. The initial offering was oversubscribed 2.4 times, and in response to strong investor demand, the issue size was increased from 3 million euros to 5 million euros.
Development projects under construction and on sale
During the first nine months of 2026, the Group concluded contracts under the law of obligations and real right contracts for the first-time sale of 175 apartments with a total value of 34.5 million euros, representing increases of 31% and 27%, respectively, compared with the same period of the previous year (9 months 2025: 134 apartments and 27.1 million euros).
At the end of the reporting quarter, the four-quarter average value of first-time sales reached 10.8 million euros (30 September 2025: 8.6 million euros), representing a year-on-year increase of 26%.
As at 30 September 2026, the Group had 7 residential development projects in pre-sale and sale (30 September 2025: 9 residential development projects), of which one had been completed and six were under construction.
The Group had 548 apartments under construction (30 September 2025: 374), comprising 289 apartments in Estonia (30 September 2025: 201) and 259 apartments in Latvia (30 September 2025: 173).
Commercial Real Estate
As at 30 September 2026, 92% of the leasable area in Hepsor's completed commercial real estate portfolio – comprising four projects with a total area of 16,678 m² – is covered by lease agreements.
The shareholders of SIA “Riga Properties 4” decided not to proceed with the planned commercial real estate development project and to put the properties owned by the company up for sale. The decision was based on current demand in the commercial real estate market and the development prospects of the project.
Canadian development projects
The third quarter of 2026 was significant for Hepsor's Canadian development projects. Following decisions of Toronto City Council, building rights came into force for two development projects – Isabella and Elysium Glenavy.
The Isabella development project allows for the construction of a 70-storey rental apartment building with a gross building area of approximately 46,000 m², and the Elysium Glenavy project a 36-storey rental apartment building with a gross building area of approximately 26,500 m².
Together with the Weston Road project, which obtained building rights in 2025, the planned building volume has been achieved in three of Hepsor's five Canadian development projects.
Future outlook
The completion of two residential development projects is planned for the fourth quarter of 2026: the M12 development project at Manufaktuuri 12 in Tallinn, comprising 49 apartments, and the 360° Dzelzavas Residences development project in Riga, comprising 103 apartments. A total of 152 new apartments will be completed across the two projects, of which 75 had been sold under the law of obligations contracts as at 30 September 2026.
In the final quarter of the year, our primary focus will be on completing development projects currently under construction, selling apartments and preparing new projects.
In Estonia, key priorities include continuing the development of the Manufaktuuri Quarter and the construction of the first phase of the Paevälja Quarter. Construction of the Veski Keskus development project at Vana-Tartu mnt 49 in Rae Municipality is scheduled to commence in the fourth quarter. Veski Keskus will provide 3,551 m² of lettable area, of which 96% is already covered by lease agreements.
In Latvia, we continue to prepare and implement several new residential development projects. Construction of the first phase of the development project at Starta 17 in Riga, comprising 84 apartments, is scheduled to commence in 2026.
Consolidated statement of financial position
| in thousands of euros | 30 September 2026 | 31 December 2025 | 30 September 2025 |
| Assets | |||
| Current assets | |||
| Cash and cash equivalents | 7,410 | 3,821 | 1,867 |
| Current financial investments | 50 | 0 | 0 |
| Trade and other receivables | 1,879 | 1,807 | 1,796 |
| Current loan receivables | 425 | 0 | 0 |
| Inventories | 76,628 | 58,938 | 53,994 |
| Total current assets | 86,392 | 64,566 | 57,657 |
| Non-current assets | |||
| Property, plant and equipment | 208 | 260 | 274 |
| Intangible assets | 0 | 0 | 1 |
| Investment properties | 11,820 | 11,820 | 7,980 |
| Financial investments | 9,078 | 7,837 | 7,550 |
| Investments in joint ventures | 451 | 26 | 1 |
| Non-current loan receivables | 6,651 | 6,521 | 6,572 |
| Other non-current receivables | 1,351 | 805 | 631 |
| Total non-current assets | 29,559 | 27,269 | 23,009 |
| Total assets | 115,951 | 91,835 | 80,666 |
| Liabilities and equity | |||
| Current liabilities | |||
| Loans and borrowings | 1,617 | 5,687 | 8,192 |
| Current lease liabilities | 12 | 50 | 13 |
| Prepayments from customers | 4,530 | 1,544 | 1,211 |
| Trade and other payables | 7,973 | 6,832 | 5,255 |
| Total current liabilities | 14,132 | 14,113 | 14,671 |
| Non-current liabilities | |||
| Loans and borrowings | 67,917 | 42,060 | 36,720 |
| Non-current lease liabilities | 112 | 112 | 162 |
| Other non-current liabilities | 9,213 | 8,472 | 7,500 |
| Total non-current liabilities | 77,242 | 50,644 | 44,382 |
| Total liabilities | 91,374 | 64,757 | 59,053 |
| Equity | |||
| Share capital | 3,913 | 3,913 | 3,913 |
| Share premium | 8,917 | 8,917 | 8,917 |
| Reserves | 385 | 385 | 385 |
| Retained earnings | 11,362 | 13,863 | 8,398 |
| Total equity | 24,577 | 27,078 | 21,613 |
| incl. total equity attributable to owners of the parent | 16,999 | 20,858 | 21,323 |
| incl. non-controlling interest | 7,578 | 6,220 | 290 |
| Total liabilities and equity | 115,951 | 91,835 | 80,666 |
Consolidated statement of profit and loss and other comprehensive income
| in thousands of euros | 9 months 2026 | 9 months 2025 | Q3 2026 | Q3 2025 |
| Revenue | 7,568 | 30,888 | 1,344 | 8,825 |
| Cost of sales (-) | -6,766 | -25,946 | -958 | -6,743 |
| Gross profit | 802 | 4,942 | 386 | 2,082 |
| Marketing expenses (-) | -799 | -676 | -303 | -228 |
| Administrative expenses (-) | -1,420 | -1,356 | -559 | -438 |
| Other operating income | 44 | 314 | 27 | 232 |
| Other operating expenses (-) | -50 | -211 | -15 | -45 |
| Operating profit (-loss) of the year | -1,423 | 3,013 | -464 | 1,603 |
| Financial income | 616 | 322 | 248 | 165 |
| Financial expenses (-) | -2,048 | -1,527 | -751 | -525 |
| Profit before tax | -2,855 | 1,808 | -967 | 1,243 |
| Corporate income tax | -323 | -283 | -1 | 0 |
| Net profit (-loss) for the year | -3,178 | 1,525 | -968 | 1,243 |
| Attributable to owners of the parent | -2,878 | 937 | -962 | 1,133 |
| Non-controlling interest | -300 | 588 | -6 | 110 |
| Other comprehensive income (-loss) | ||||
| Changes related to change of ownership | -137 | -81 | -353 | -81 |
| Change in value of embedded derivatives with minority shareholders | -98 | -534 | -59 | -106 |
| The effects of changes in foreign exchange rates | -12 | -375 | 29 | -83 |
| Other comprehensive income (-loss) for the period | -247 | -990 | -383 | -270 |
| Attributable to owners of the parent | 75 | 418 | 65 | 759 |
| Non-controlling interest | -322 | -1,408 | -448 | -1,029 |
| Comprehensive income (-loss) for the period | -3,425 | 535 | -1,351 | 973 |
| Attributable to owners of the parent | -2,803 | 1,355 | -897 | 1,892 |
| Non-controlling interest | -622 | -820 | -454 | -919 |
| Earnings per share | ||||
| Basic (euros per share) | -0.74 | 0.24 | -0.25 | 0.29 |
| Diluted (euros per share) | -0.74 | 0.24 | -0.25 | 0.29 |
The full unaudited consolidated interim report for Q3 and nine months of 2026 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 28 development projects with a total area of 195 800 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.
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