Hepsor Increases Development Volume and Closes Year with Profit

Real estate developer Hepsor completed the 2025 financial year with a profit, significantly increased the volume of projects under construction, expanded its development portfolio, and raised additional capital from investors.

Hepsor's consolidated revenue for 2025 was 35.4 million euros and the group's net profit reached one million euros. The net profit attributable to the parent company's owners remained at the 0.5 million euro level.

According to Hepsor's board chairman Martti Krass, the main factor affecting the results was a cooled real estate market. "Revenue and profitability were primarily affected by the fact that we delivered fewer homes to clients than in the previous year," explained Krass. "Profitability was also impacted by the lower number of apartments delivered as well as lower profit margins on development projects."

In 2025, Hepsor delivered 141 homes to clients, while the company made 185 new apartment sales with a total value of 36.1 million euros, which is nearly twice as much as in the previous year. At the end of 2025, the group had ten development projects on the market and 92% of the completed apartments had been sold.

"The most significant growth occurred in the volume of projects under construction. Over the year, the number of homes under construction increased from 192 to 428, and this doubling demonstrates the strength of our development portfolio and creates the conditions for revenue growth in the coming years," said Krass. During the year, the company expanded its development portfolio with three new properties, which are planned to include approximately 700 apartments and commercial space in total. In Tallinn, the Manufaktuuri 3 project was added, which is planned to build approximately 300 new homes in three phases. The property's detailed plan allows for the construction of a building up to 60 stories high.

In addition to the Baltic countries, Hepsor continued development activities in Canada, where Toronto City Council granted building rights for the Weston Road project. During the detailed planning process, the project's construction volume was increased more than twofold.

Hepsor's financial position was strengthened by a successful bond offering completed in November. The company raised 8 million euros from investors, and the issue was oversubscribed by 1.4 times, with over a thousand investors from the Baltic countries participating in the offering.

This year, Hepsor plans to start construction on five new development projects in Estonia and Latvia, including new residential and commercial real estate projects in Tallinn, Riga, and Rae municipality.

Hepsor develops environmentally suitable and well-thought-out living and commercial spaces that are based on client needs. The solutions combine innovative solutions and new technologies to offer a modern and energy-efficient living environment.