Arco Vara enters its next growth phase driven by major development projects

At Arco Vara’s Annual General Meeting held on Tuesday, CEO Rait Riim presented the company’s growth strategy for the coming years, centred on the implementation of large-scale development projects and the creation of long-term value. Shareholders approved the 2025 Annual Report and agreed to direct the company’s resources towards supporting its next phase of growth.

The General Meeting agreed to cover the company’s net loss of EUR 479 thousand for the 2025 financial year from retained earnings of previous periods and to leave retained earnings undistributed. Consequently, shareholders also decided not to pay a dividend for the previous financial year.

According to Arco Vara CEO Rait Riim, the company has entered a new stage of development over the past two years, with its focus now shifting to the execution of large-scale development projects.

“Over the past few years, we have significantly expanded our development portfolio and built a strong foundation for our next growth phase. Today, Arco Vara’s portfolio comprises nearly 150,000 square metres of development volume, with a potential future sales value exceeding EUR 430 million. Our next objective is to systematically deliver these projects and, through them, increase the Company’s long-term value,” said Riim.

According to Riim, the Arco Vara’s key projects over the coming years are the Luther Quarter development in central Tallinn and the Arcojärve residential district planned near Lake Harku. At the same time, the Soodi 6 and Spordi developments will be completed this year and are expected to make a significant contribution to Arco Vara’s financial results in 2026.

“Real estate development is a long-term business. The investments we make today create the foundation for tomorrow’s results. That is why maintaining a strong financial position and allocating capital primarily to projects that create value for both homebuyers and investors remains a priority for us. Our goal is not to build more, but to develop integrated living environments that retain their value for decades,” Riim added.

Arco Vara forecasts revenue of EUR 27 million and a net profit of EUR 1.2 million for 2026. This year’s objectives include completing the sales and construction of the Soodi 6 and Spordi developments, commencing construction of the Luther Quarter by the end of the year, securing approval of the detailed plan for the Arcojärve development and applying for a building permit, as well as acquiring one to two new development projects.