Hepsor AS Reports Increased Investments in First Nine Months
News related to:Hepsor AS · 4 min read
The first nine months of 2026 were characterized by active development and substantial investments for Hepsor. The Group has reached the most capital-intensive stage of its investment cycle, as evidenced by a 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. As of September 30, 2026, the Group had started the year with 28 completed apartments, of which only one remained unsold. 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.
During the first nine months of 2026, the Group concluded 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 to the same period of the previous year. At the end of the reporting quarter, the four-quarter average value of first-time sales reached 10.8 million euros, representing a year-on-year increase of 26%. As of September 30, 2026, the Group had 7 residential development projects in pre-sale and sale, of which one had been completed and six were under construction. The Group had 548 apartments under construction, comprising 289 apartments in Estonia and 259 apartments in Latvia.
The Group's sales revenue for the first nine months of 2026 was 7.6 million euros, compared to 30.9 million euros in the same period of 2025. Revenue for the third quarter of the reporting year was 1.3 million euros, down from 8.8 million euros in the third quarter of 2025. The Group's net loss for the first nine months of the reporting year was 3.2 million euros, compared to a net profit of 1.5 million euros in the same period of 2025. The Group's net loss for the third quarter amounted to 1.0 million euros, compared to a net profit of 1.2 million euros in the third quarter of 2025.
The Group's total assets increased by 44% year-on-year, reaching 116.0 million euros as of September 30, 2026, compared to 80.7 million euros in the same period of 2025. 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, with the initial offering being oversubscribed 2.4 times. In response to strong investor demand, the issue size was increased from 3 million euros to 5 million euros.
As of September 30, 2026, the Group's potential sales revenue from its development portfolio amounted to 535 million euros, with residential real estate accounting for 86% of the total and commercial real estate for 14%. The Group's net loss for the first nine months of the reporting year was 3.2 million euros, with the net loss attributable to the owners of the parent company amounting to 2.9 million euros. The Group's net loss for the third quarter was 1.0 million euros, with the loss attributable to the owners of the parent company also amounting to 1.0 million euros.
In the final quarter of the year, the Group's 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. In Latvia, the Group continues 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.
The Group's total assets increased by 44% year-on-year, reaching 116.0 million euros as of September 30, 2026, compared to 80.7 million euros in the same period of 2025. 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, with the initial offering being oversubscribed 2.4 times. In response to strong investor demand, the issue size was increased from 3 million euros to 5 million euros.
In the final quarter of the year, the Group's 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. In Latvia, the Group continues 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.
The Group's total assets increased by 44% year-on-year, reaching 116.0 million euros as of September 30, 2026, compared to 80.7 million euros in the same period of 2025.