Pro Kapital Grupp (PKG1T) Status update summary

Strategic overview and market positioning

• Focused on premium residential real estate in Baltic capitals, with a clear Baltic identity and local investor base.

• Over 1,200 homes delivered, 1,800+ in pipeline, and a portfolio exceeding 800,000 sq m of development area.

• Strong presence in Tallinn, Riga, and Vilnius, with Vilnius currently leading in luxury segment performance.

• Conservative approach in Riga due to lower median prices, awaiting market improvement for premium developments.

• Diversified with a unique hotel property in Germany, adding to asset base.

Financial performance and capital structure

• 2025 revenue reached EUR 53 million, net profit EUR 12 million, and operating profit nearly EUR 15 million.

• Gross margin for residential development at 35% in 2025, outperforming sector peers.

• Equity ratio at 54%, significantly higher than sector average, reflecting a deliberate risk-averse strategy.

• LTV reduced by 40% over three years; 83% of debt covered by cash and completed real estate.

• Completed properties carried at cost, with future revenue expected from ongoing and upcoming projects.

Bond issue and use of proceeds

• New unsecured bond issue of EUR 6–10 million, 8.3% interest, two-year tenor, with early redemption option.

• Proceeds will fully redeem existing Swedish bonds, reducing financing and administrative costs.

• Bonds to be listed on the Baltic Bond List; financial covenant requires equity ratio above 35%.

• Subscription open to public and professional investors in the Baltics and EEA.

• No increase in overall debt level; focus on refinancing and cost optimization.