Arco Vara shareholders approve dividend and future plans

Arco Vara will pay a dividend of 6 cents per share for the financial year just ended, as decided by the Annual General Meeting. According to CEO Miko Niinemäe, Arco Vara will continue to grow, and the company expects to generate total sales of almost EUR 250 million in the next five years.

The first dividend payment in June this year will be 2 cents per share, as decided by the AGM. Thereafter, 1 cent per share in September, 2 cents again in December and 1 cent per share in March 2024. In total, Arco Vara will pay a dividend of 6 cents per share. Miko Niinemäe, CEO of Arco Vara, confirmed that although the dividend policy for 2021 will be at least 1 cent per share per quarter, the company wants to keep the dividend policy similar to the previous financial year. “At the moment, we see that by continuing to maintain the dividend at six cents per share, we are able to grow at the planned pace in parallel. We have recently updated our profit forecast, the company expects to end the year with EUR 2 million more profit than previously projected, as the Kodulahe Rannakalda development will be completed earlier than planned and thus we will be able to formalize the sales of new homes earlier,” Niinemäe explained. The Board of Directors presented Arco Vara’s economic forecast to shareholders at the AGM. “This year we expect sales revenue of EUR 21 million and profit of EUR 3.5 million,” said Niinemäe. According to him, in addition to the Rannakalda development, Arco Vara is currently building the Kuldlehe apartment block in Pirita on Lehiku road. “The finalisation of the final sales of Kuldlehe is scheduled for the first quarter of 2024. At the same time, the construction of the Botanica Lozen residential complex in Bulgaria will continue, with the houses of Phase I due to be completed next year and Phase II planned to start at the end of this year,” the CEO said. “Among the new developments, our next major project – Arcojärve, which is being built on the shores of Lake Harku – is currently in the detailed planning process, as are the next stages of Kodulahe at Lammi 6 and Soodi 6,” Niinemäe added. “We have development projects on the pipeline with potential sales of almost EUR 250 million, which are scheduled to be realised within the next six years. This shows a significant increase in development volumes and is a sign of growth in the coming years.” Miko Niinemäe expressed his satisfaction that Arco Vara shareholders were mainly in agreement on all the resolutions of the general meeting. “I think we are heading in the right direction, and this was also noted by the shareholders, who represented more than 72% of the total votes.” He expressed his hope that Arco Vara will continue to pay dividends quarterly. “This will give us the opportunity to invest additional income four times a year instead of once a year, while at the same time showing every small shareholder that their contribution is important to us.” Arco Vara will decide on the continuation of the quarterly dividend at the 2024 Annual General Meeting.