Real estate developer Arco Vara has informed the stock exchange that it is increasing its profit forecast for the past year by 33%, reaching 3.6 million euros. In the third quarter of the previous year, the company expected a profit of 2.7 million euros for 2023.

According to Arco Vara CEO Miko Niinemäe, the company’s revenue is expected to remain at 18.2 million euros. “There are no significant changes in revenue. The growth in profit comes from lower-than-budgeted costs, with the majority attributed to the final construction cost of the Rannakalda development being lower than planned,” explained Niinemäe.

Two weeks ago, Arco Vara’s subsidiary, Arco Tarc, engaged in construction contracting, announced that it had prematurely completed the Rannakalda development project in the Kodulahe quarter, despite the volatile market situation. Arco Tarc started construction work on the Rannakalda development at Lammi 8 in the Kodulahe quarter in February 2022, and the initially planned phase for the first quarter of the current year was completed ahead of schedule by the end of 2023.

In addition to savings from the Rannakalda development, Arco Vara also identified cost-saving opportunities in the company’s general expenses. This is still unaudited data. Arco Vara will release the audited report for the year 2023 on April 4.

Since the beginning of last year, Arco Vara has been disclosing revenue and profit forecasts for the upcoming quarters in its quarterly reports.