Arco Vara forecasts annual profit of nearly EUR 3 million
Arco Vara, the developer of integrated areas, continued its construction and sales activities as planned in the third quarter and expects sales revenue of EUR 18.2 million and a profit of EUR 2.7 million this year.
“The summer months are characterised by a lack of activity in the real estate market, but this cannot be said for Arco Vara this year, looking back at the third quarter,” said Miko Niinemäe, CEO of Arco Vara. According to him, the company’s collective has been successful in a wave of pre-sales, with the number of enquiries for homes on an upward trend throughout the year. Although Arco Vara has not yet reached the final sales stage in the first 9 months of 2023, the company has already started handing over newly completed apartments in the Rannakalda development earlier this month, and plans are for 65 clients to receive their new homes in the last quarter of the year.
“Arco Vara’s balance sheet to equity ratio is in a very healthy state and the rise in interest rates has not had a significant impact on the company’s cash flow. Based on this, we will continue to sell and market homes as planned, which will help us to reach a profit of almost EUR 3 million already this year,” said the company’s CEO.
As the apartment buildings have not yet entered into the real estate contracts in the third quarter, the group’s sales revenue for the first 9 months of 2023 of EUR 652 000 is significantly lower than the EUR 13.2 million in the same period of the previous year. The company’s net loss amounted to EUR 928 000.
In addition to the Rannakalda development, where final sales of apartments are scheduled for next year, development activities will also continue at Soodi 6 in Kodulahe Quarter on Stroomi beach. In September, the winner of the architectural competition for this property was announced. “The competition was won by the architectural firm APEX, whose outdoor space solution connects the Stroomi beach area with the Paldiski highway light traffic area through Kodulahe Kvartali, keeping in mind the safety of road users and the compactness of the walkways,” Niinemäe said. As with the Rannakalda development, the main contractor for the construction of Soodi 6 will be the listed company’s subsidiary Arco Tarc, which was awarded three internationally recognised ISO certificates last quarter.
Construction work is also underway in Pirita, where a luxury boutique building, Kuldlehe, is being built with just five apartments. The building reached its final height in September and, according to the head of Arco Vara, the unique homes there will be completed in the first half of 2024.
“In addition, construction continues in Botanica Lozen, where 3 of the 16 private houses have found a happy buyer. According to the planned construction schedule, we expect to hand over the buildings in the second half of 2024, when the construction of the new phase of 24 buildings is also scheduled to start,” said the company’s CEO, describing the business in Bulgaria.
Webinar
Arco Vara AS also invites all interested parties to participate in the webinar presenting the financial results for the third quarter of 2023 on 26 October at 10.00. The webinar will be held in Estonian. At the seminar, the Group’s CEO Miko Niinemäe will present the unaudited financial results for the third quarter of 2023.
You can follow the broadcast here.
