Miko Niinemäe, the CEO of Arco Vara, summarized successful business results of 2023 and noted that the current economic cycle has created an opportunity for the company to expand its development activities with new projects.

Arco Vara, a developer of complete living environments, submitted its audited report of last year’s financial results to the stock exchange, stating the company earned over 18 million euros of revenue and 3.6 million euros of profit. “The period of tension continues in 2024 while the team of Arco Vara focuses on making new investments. We are in a period where the construction costs have stabilised but the stock of the company is decreasing and interest expenses remain high, creating opportunities for us to obtain new development volumes,” said Niinemäe.

The CEO highlighted that last year, Arco Vara reached one of its long-term goals – a ROE level of 20%. “Considering the delivery of homes, the volume of assets of the company decreased while the equity-to-asset ratio increased to nearly 60%, enhancing the security and capacity of the company to continue developments as planned despite the difficult times in the world of interest rates,” added Niinemäe.

In 2023, a peak event for Arco Vara was the completion of the Rannakalda development in the Kodulahe quarter near Stroomi beach, where 66 homes were handed over to new residents. In addition to completing those homes, Arco Vara commenced the assessment of environmental impact by conducting the initial lifetime analysis in the Kodulahe Rannakalda building. “Arco Vara’s goal is to promote sustainable real estate development. The building’s climate impact analysis is a significant factor for us, which we intend to monitor in the next stages of Kodulahe as well as in planning the Arcojärve development,” said Niinemäe.

This year, the real estate developer, together with its subsidiary and main contractor Arco Tarc, intends to start construction in the next phase of the Kodulahe quarter at Soodi 6 property and in the Arcojärve development near Lake Harku. In Bulgaria, where a focus on residential development led to the sale of the Madrid BLVD office building last year, construction continues in the Botanica Lozen project, where six of the 16 houses have been pre-sold as of the annual report publication.

For 2024, Arco Vara forecasts a sales revenue of 25.2 million euros and a profit of 2.2 million euros.