According to the decision of the general meeting of shareholders of Arco Vara, the company pays a 6 cents per share for dividend for the completed financial year. According to the company’s CEO Miko Niinemäe, Arco Vara will continue to grow and the estimated sales revenue for the next five years will be almost 250 million euros in total.
According to the decision of the general meeting, the first dividend payment will be 2 cents per share in June 2023. Following that, 1 cent per share in September, 2 cents again in December and 1 cent per share in March 2024. Arco Vara will pay a total of 6 cents of dividends per share.
The CEO of Arco Vara, Miko Niinemäe, confirmed that although the dividend policy approved in 2021 stipulates a minimum of 1 cent per share in each quarter, the company wants to keep the principle of paying dividends similar to that of the previous financial year. “We see that by continuing to keep the dividend at six cents per share, we can simultaneously grow at the planned pace. We recently updated our profit forecast, the company expects a profit of 2 million euros more than previously forecast at the end of the year, because the Kodulahe Rannakalda development will be completed earlier than planned, and therefore we can formalize the sales of new homes earlier as well,” explained Niinemäe.
The board presented Arco Vara’s economic forecast to the shareholders at the general meeting. “We expect 21 million euros in sales revenue this year and 3.5 million euros in profit,” said Niinemäe. According to him, in addition to the Rannakalda development, Arco Vara’s Kuldlehe cluster housing in Pirita on Lehiku Road is currently under construction. “The formalization of the final sales of Kuldlehe will remain in the first quarter of 2024 as planned. At the same time, the construction of the Botanica Lozen residential area in Bulgaria continues. The houses of stage I will be ready next year and we are planning to start stage II at the end of this year,” the CEO introduced the ongoing developments.
“Of the new objects, our next major project – Arcojärve by Lake Harku – is currently in the zoning plan process, the same is true for the next stages of Kodulahe on the Lammi 6 and Soodi 6 properties,” added Niinemäe. “We have development projects in the schedule with a potential sales revenue of almost 250 million euros, the realization of which is planned within the next six years. This shows a significant increase in development volumes and growth in the following years.”
Miko Niinemäe expressed his satisfaction that the shareholders of Arco Vara were mainly in agreement regarding all the decisions of the general meeting. “I believe that our direction is correct, and this has also been noticed by the shareholders, who were represented by more than 72% of the total votes.”
He expressed hope that Arco Vara will continue to pay dividends quarterly. “This allows us to invest additional income four times a year instead of once a year, while also showing every minority shareholder that their contribution is important to us.” Arco Vara will decide on continuing the quarterly dividend payment at the 2024 general meeting.