Arco Vara shareholders approve dividend and share issue

The annual general meeting of shareholders of the real estate developer Arco Vara was held on Thursday, during which the 2024 annual report, dividend policy, and a new share issue were approved. The meeting was attended by shareholders representing 74.6% of the total voting rights.

According to the decision of the general meeting, Arco Vara will pay a dividend of 2 euro cents per share for the previous financial year. The dividend payment will be made on 12 November 2025. Kristina Mustonen, CEO of Arco Vara, stated during the meeting that paying a dividend even after a challenging year reflects the company’s commitment to continuity and investor trust.

“The first half of last year was exceptionally weak in the real estate market. In the second half, however, we began to see signs of recovery,” said Mustonen. She added that despite market difficulties, the company achieved several important development and planning milestones and maintained a strong balance sheet.

“We’re keeping our dividend promise and paying 2 cents per share this year. Our goal is to return to a 6-cent dividend starting from the year after next, once we reach the necessary level of profitability,” she explained. To support the Luther project, the general meeting also approved a targeted share issue to raise additional investment from both existing and new partners. Alarmo Kapital OÜ remains the majority shareholder of Arco Vara.

During the annual general meeting, Arco Vara’s management also presented plans for the current financial year. The company has successfully maintained its equity ratio above 35%, as targeted. One of the main goals for 2025 was to increase development volumes by at least 20%, but with the addition of the Luther Quarter and development on Spordi street, the company’s development portfolio has already nearly doubled. 2025. Operating in Estonia and Bulgaria, Arco Vara forecasts 2025 revenue at 9 million euros and profit at 200,000 euros.

“The key contributors to these results will be finalizing the sales of the Rannakalda and Kuldlehe projects, as well as the launch of construction for two new developments – Soodi 6 and Spordi street – during the second quarter. In addition, preparations for the Luther Quarter project are actively underway, with construction of the first phase planned to start at the same time next year,” Mustonen said.

“Our focus remains on long-term value creation. At the moment, our development portfolio includes 158,000 square metres and 1,259 units – this gives us a solid foundation for future growth,” she concluded.