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Pealkiri

Liven AS - Consolidated unaudited interim report for the IV quarter and 12 months of 2025

Teade

A webinar on the presentation of the results (in Estonian only) will take place
on 29 January at 13:00 (EET), more information
(https://view.news.eu.nasdaq.com/view?id=1414825&lang=en).


Alike  in previous quarter, the market remained  active in the fourth quarter of
2025. A  total of  60 sales contracts  (contracts under  the law of obligations)
were  signed during the quarter (Q3  2025: 60; Q4 2024: 34). In the 12 months of
2025, we  signed a total of 176 sales contracts, which exceeds the result of the
previous  year by  36% (2024: 129), includes  the first  four sales contracts in
Berlin, and marks Liven's highest annual result to date.

The  largest contribution to  new contracts signed  during the quarter came from
sales  in the  Iseära and  Peakorter projects.  Throughout the  year, the Iseära
project  contributed the  most to  signed sales  contracts, while  the remaining
sales were distributed more evenly across various projects.

The  weekly sales ratio, which reflects the  number of homes going out of supply
through  either sales  contracts or  paid reservations,  was lower in the fourth
quarter than the peaks of the first half of 2025 but stabilized largely near the
lower  end of the  long-term average (1.5-2.0%). The  ratio fluctuates over time
due  to the  sales and  supply cycles  of projects.  In the  fourth quarter, the
number  of offers rose to a higher level  supported by the addition of three new
projects.

It  is estimated that in 2025, Liven's market share of new sales transactions in
Tallinn  and adjacent municipalities was approximately 7-8%, which is lower than
the  estimated  market  share  of  approximately  10% last year, but remains the
highest result on the market.

The  quarter's  and  year's  sales  revenue  was  most  strongly impacted by the
completion  of construction  and handover  of homes  in the  first phase  of the
Regati  project.  The  Iseära  project  also  had  a  significant impact on both
quarterly  and  annual  sales  revenue.  During  the  quarter,  we also sold two
previously  completed homes in  the Luuslangi project  and the last  home in the
Magdaleena project, marking the full realization of the project.

Sales  contracts signed during the period that  are not transferred under a real
right  contract within  the same  period are  recognized as  presales. As of the
beginning  of the quarter, the estimated value of previously recognized presales
was EUR 55 million (beginning of 2025: EUR 35 million).

Due  to the completion of construction and handover of homes, a significant part
of  the previous presales was  realized as sales revenue  in both the Regati and
Iseära  projects. During the quarter, we signed new sales contracts amounting to
EUR  14.7 million in  sales revenue,  of which  presales accounted  for EUR 9.7
million  (net EUR 8.7 million).  We enter 2026 with  a presale portfolio of 101
homes,  with a contractual sales revenue volume of EUR 33.7 million. Presales do
not   include  the  Peakorter  I  phase,  as  the  50/50 joint  venture  is  not
consolidated line-by-line and sales revenue is not reflected in the consolidated
results.

In  Q4, homes in the Regati I phase  were completed, of which we handed over 64
homes.  In addition,  we handed  over 16 freshly  completed homes  in the Iseära
project  and previously completed  homes - 2 homes  in the Luuslangi project and
the  last home in the Magdaleena development.  In total, we handed over 83 units
during the quarter (Q3 2025: 15; Q4 2024: 24).

The  sales revenue for the fourth  quarter was EUR 34,888 thousand (Q3 2025: EUR
5,080 thousand;  Q4 2024: EUR 8,164 thousand) and the net profit for the quarter
was  EUR 5,014 thousand (Q3 2025: EUR 132 thousand;  Q4 2024: EUR -78 thousand).
During  the year, we handed over a total of 139 new homes (2024: 92), earned EUR
49,287 thousand  in  sales  revenue  (2024:  EUR  27,266 thousand) and EUR 5,415
thousand in net profit (2024: EUR 558 thousand).

Due  to the handover of  completed homes, the volume  of assets decreased by EUR
13,726 thousand  during the  quarter to  EUR 86,457 thousand. Construction loans
were  issued  in  the  amount  of  EUR  4,967 thousand  during  the quarter, but
primarily  due to repayments of Regati project construction loans, the volume of
construction  loans decreased  by EUR  24,684 thousand by  the end  of the year,
amounting to EUR 5,662 thousand.

Other loan liabilities increased by EUR 3,888 thousand during the quarter due to
the  long-term financing of new properties and the refinancing of the Juhkentali
project  with a bank loan on more favorable terms following the establishment of
the detailed spatial plan. In total, the volume of loan liabilities decreased by
EUR  15,829 thousand  during  the  quarter,  reaching  EUR  46,732 thousand. The
balance  of cash and cash equivalents increased by EUR 2,927 thousand during the
quarter to EUR 8,553 thousand.

Due  to the continuation of construction in five development projects, the total
volume  of loan liabilities  will grow in  the first half  of the year. With the
completion  of construction and the associated  handover of homes, the volume of
loan liabilities will decrease again by the end of 2026.

Consolidated statement of financial position

 (in thousands of euros)                                 31.12.2025 31.12.2024
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 Current assets

 Cash and cash equivalents                                    8 553      5 905

 Trade and other receivables                                  1 456      1 270

 Prepayments                                                    531        385

 Inventories                                                 71 009     67 902
------------------------------------------------------------------------------
 Total current assets                                        81 549     75 462
------------------------------------------------------------------------------
 Non-current assets

 Prepayments                                                     44         44

 Trade and other receivables                                  1 535          0

 Investment property                                          1 960      1 350

 Property, plant and equipment                                  296        423

 Intangible assets                                              467        401

 Right-of-use assets                                            606        618
------------------------------------------------------------------------------
 Total non-current assets                                     4 908      2 836
------------------------------------------------------------------------------
 TOTAL ASSETS                                                86 457     78 298
------------------------------------------------------------------------------
 Current liabilities

 Borrowings                                                  11 882      6 405

 Trade and other payables                                    13 822     11 234

 Provisions                                                      97         99
------------------------------------------------------------------------------
 Total current liabilities                                   25 801     17 739
------------------------------------------------------------------------------
 Non-current liabilities

 Borrowings                                                  34 850     40 851

 Trade and other payables                                     2 065      1 398

 Provisions                                                     151         72
------------------------------------------------------------------------------
 Total non-current liabilities                               37 066     42 322
------------------------------------------------------------------------------
 Total liabilities                                           62 867     60 061
------------------------------------------------------------------------------


 Equity

 Share capital                                                1 200      1 200

 Share premium                                                9 586      9 562

 Share option reserve                                           262        317

 Own (treasury) shares                                           -4         -9

 Statutory capital reserve                                      120        118

 Retained earnings (prior periods)                            7 012      6 491

 Profit/Loss for the year                                     5 414        558

 Total equity attributable to owners of the parent           23 590     18 237
------------------------------------------------------------------------------
 Total equity                                                23 590     18 237
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 TOTAL LIABILITIES AND EQUITY                                86 457     78 298
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Consolidated statement of comprehensive income

 (in thousands of               2025 IV       2024 IV     2025 12      2024 12
 euros)                         quarter       quarter       months       months
                              (October-     (October-    (January-    (January-
                              December)     December)    December)    December)
-------------------------------------------------------------------------------
 Revenue                         34 888         8 164       49 287       27 266

 Cost of sales                  -28 937        -7 477      -40 540      -23 429
-------------------------------------------------------------------------------
 Gross profit/loss                5 951           687        8 747        3 837
-------------------------------------------------------------------------------


 Distribution costs                -471          -439       -1 881       -1 418

 Administrative
 expenses                          -447          -426       -1 613       -1 419

 Other    operating
 income                              18           279          272          312

 Other    operating
 expenses                           -13           -10          -42          -26
-------------------------------------------------------------------------------
 Operating
 profit/loss                      5 038            91        5 483        1 287
-------------------------------------------------------------------------------


 Finance income                      72            23          148           79

 Finance costs                      -90          -199         -184         -647

 Total finance income and
 finance costs                      -18          -177          -36         -568
-------------------------------------------------------------------------------
 Profit/Loss before
 tax                              5 020           -86        5 447          719
-------------------------------------------------------------------------------
 Income tax expense                  -5             8          -34         -162
-------------------------------------------------------------------------------
 Net    profit/loss
 for the period                   5 014           -78        5 414          558
-------------------------------------------------------------------------------
 Attributable to owners
 of the parent                    5 014           -78        5 414          558


-------------------------------------------------------------------------------
 Comprehensive   income
 for the period                   5 014           -78        5 414          558
-------------------------------------------------------------------------------
 Attributable to owners
 of the parent                    5 014           -78        5 414          558
-------------------------------------------------------------------------------


 Basic  profit/loss
 per share                        0.418        -0.007        0.451        0.047

 Diluted
 profit/loss per
 share                            0.411        -0.006        0.444        0.046
-------------------------------------------------------------------------------

The  customer satisfaction score for the  last 12 months, collected at different
stages  of the customer journey,  remained stably high at  the end of the fourth
quarter - 9.6 points out of 10 (Q3 2025: 9.5; Q4 2024: 9.2).

Key events in development projects
During  the quarter, the  first homes in  the Regati I  phase were completed and
handovers  began. By  the end  of the  quarter, we  handed over 57% of the homes
completed  in the phase.  In December, a  building permit was  issued for the II
phase  of the project. We  plan to start presale  and construction during 2026.
During the quarter, we also handed over homes in the last terraced houses of the
freshly  completed  Iseära  second  phase,  as  well  as  the  last  home in the
Magdaleena project.

In  October, construction  works began  on the  Virmalise project, where a four-
story residential building with 28 new homes and a closed courtyard area will be
completed  at Virmalise tn 3 by the end  of 2026. The general contractor for the
construction is Bildgren Ehitus OÜ and the authors of the architectural solution
are  Liven and Arhitektuuribüroo  Kuup Ruut OÜ.  The construction is financed by
Bigbank AS.

In  October,  we  also  started  construction  works on the new Iseära apartment
buildings  (Lutsu tn  2, 4 and 6), where  36 new homes  will be completed in the
autumn  of  2026. The  general  contractor  for  the  apartment buildings is Oma
Ehitaja AS and the construction is financed by Bigbank AS.

During  the quarter, new  homes were added  to sales in  the Olemuse project and
presale  began in the next phases of  the Luuslangi and Iseära projects. A total
of 79 new homes.

We  acquired  a  development  property  at  Järveotsa  tee  16c in the Haabersti
district  of Tallinn through  an auction. A  residential building complex, along
with  commercial  spaces  that  add  value  to  the local living environment, is
planned  for the  nearly 13,300 m²  property. The  transaction value is EUR 1.1
million   and   the   total  estimated  investment  volume  of  the  project  is
approximately EUR 20 million.

During  the quarter,  we financed  both the  Järveotsa tee  16c property and the
Linnamäe  tee  21a property  acquired  in  the  previous  quarter with long-term
secured  loans. We  also refinanced  the Juhkentali  project with a secured bank
loan  following the establishment  of the detailed  spatial plan in the previous
quarter. The total volume of these new loans is EUR 4,195 thousand.

According  to  the  Kantar  Emor  survey  published in the fourth quarter, Liven
shared  the  first  place  in  the  ranking  of  the  reputation  of real estate
developers  this  time.  Liven  continues  to  be  known for the most attractive
developments.

During  the year, we  signed a cooperation  agreement with Oma  Grupp OÜ for the
development  of the  Peakorter I  phase project  (50/50 joint venture), signed a
sales  contract for part of  the commercial land on  the Kadaka tee 88 property,
started  six more constructions  in various development  projects, paid EUR 180
thousand in dividends and issued a second series of green bonds in the amount of
EUR 6 200 thousand.

Events after the reporting period
In  January, we refinanced  the loan liabilities  of the Regati  project and the
costs arising from additional and modification works with the previous financier
of the project, secured by the completed homes.

In  January 2026, we signed a general contract  for the construction of the next
residential  buildings of the  Luuslangi project II  phase with Mitt & Perlebach
OÜ,  who is also the general contractor for the earlier residential buildings of
the development project. 39 homes will be completed in the residential buildings
at Jalami tn 4 in the first half of 2027.

The  Tallinn  City  Government  approved  the  detailed  spatial  plan  for  the
Kadakadabra  development project, the establishment of which by the Tallinn City
Council we expect in the near future.

Significant developments in the economic environment in the period under review
After  the earlier downward  trend, the 6-month  Euribor stabilized in the third
quarter  of  2025 and  showed  only  a  slight  increase  in the fourth quarter,
reaching     2.14% by     the     end     of     the     quarter    (30.09.2025:
2.10%; 31.12.2024: 2.57%). Inflation  in the euro area has remained close to the
European Central Bank's (ECB) long-term target (2%). After several base interest
rate  cuts (by a total of 100 basis points  in four stages) in the first half of
2025, the  ECB left interest rates unchanged  at both the September and December
meetings,  citing the  need to  assess the  impact of  previous decisions on the
economy.  The  ECB  forecasts  inflation  for 2025-2027 at 2.1%, 1.7%, and 1.9%
respectively, which suggests that the monetary policy stance is likely to remain
stable in the near term.

In  Estonia, the  annual consumer  price growth  in the  fourth quarter of 2025
continued  to  be  faster  than  in  the  euro area, with prices rising by 4.1%
compared  to  the  same  period  of  the  previous year (Q3 2025: 5.2%; Q4 2024:
3.9%). According to Eesti Pank's latest forecast, average inflation in 2025 will
be approximately 4.9%, reflecting the impact of production costs, tax increases,
and  continued wage  growth. The  annual average  consumer price index growth in
2025 was  4.8%, primarily influenced by the price  increase of food and services
and tax changes

Based  on the latest  available data from  Statistics Estonia and our estimates,
the  average gross wage grew by  nearly 6.0% year-on-year in the fourth quarter,
outpacing  consumer price growth.  Despite wage growth,  consumer confidence has
remained  low  for  a  prolonged  period,  as  confirmed  by  economic  experts'
estimates,  even if  the situation  is not  objectively comparable to historical
lows  as  indicated  by  data  compiled  by  the  Estonian Institute of Economic
Research.

Looking  into  2026, a  noticeable  recovery  in  household  purchasing power is
expected.  While the growth rate  of gross wages is  stabilizing, the income tax
changes  entering into force on 1 January 2026 will increase people's net income
by  approximately 10% according to Eesti Pank forecasts, significantly exceeding
the  expected  price  increase.  This  will  improve  real  purchasing power and
increase the affordability of real estate.

According  to  the  Land  and  Spatial  Development  Board's  purchase and sales
statistics,  the  number  of  apartment  (residential)  transactions  in Tallinn
decreased by 6.9% in the fourth quarter of 2025 compared to the previous quarter
(Q4  2025: 2,193; Q3  2025: 2,356 transactions).  The  number of transactions in
2025 reached   9,020, exceeding   the   previous   year  by  7.5% (2024:  8,387
transactions).  Transaction  activity  during  the  year increased mainly in the
secondary  market,  but  a  moderate  pick-up  was  also  noticeable  in the new
developments segment, pointing to a gradual market recovery.

Compared to the third quarter of 2025, sales offers for new developments and the
average  sales price remained generally stable  in the fourth quarter, but there
was  a moderate increase in offers and price  levels during the year. In a year-
on-year  comparison,  the  average  number  of  sales  offers for new apartments
increased  by  8.7% according  to  Citify  data (2025: 2,760 units; 2024: 2,523
units),  with  a  total  of  1,752 new  apartments  added  to  the  Tallinn  new
developments  market during  the year.  The average  price per square meter also
increased by 4.3% compared to the previous year (2025 average: 4 987 EUR/m²; 2024
average: 4,782 EUR/m²).

According to Citify data, 368 sales contracts were signed in Q4, which is 12.8%
less  compared to the previous quarter  (Q3: 422) and 18.8% less compared to the
same  period of  the previous  year (Q4  2024: 453). In 2025, a  total of 1,515
apartments  were sold in Tallinn, which is  23.1% more than in the previous year
(2024: 1,229). In addition, a total of 809 apartments were sold on the outskirts
of  Tallinn during  the year,  which was  49.8% more than  in the previous year.
(2024:  540) according to Citify  data, indicating a  greater recovery in demand
specifically outside Tallinn.

Over  the last three years, the stock  of completed apartments on the market has
clearly  increased. The average number of completed apartments in 2025 increased
by   12.9% compared   to  the  2024 average  (2025: 988  apartments;  2024: 875
apartments).  Throughout  the  year,  the  number  of  completed  apartments was
relatively  high, accounting for an average  of 36.1% of the total supply (2024:
34.5%).

Outlook for the future
We  expect growth  in the  new developments  market in 2026. Euribor, the factor
that  influenced the market most in  previous years, normalized during 2025, and
we  consider  its  impact  neutral  in  2026. While in previous years tax policy
decisions  had a dampening effect on  demand and increased uncertainty, in 2026
they will be replaced by a change having a positive impact on household incomes.
The  establishment of a unified tax-free minimum continued real wage growth, and
the  forecast improvement in the economic environment will significantly improve
the  financial  position  of  households  and  create  a firmer basis for making
purchase  decisions. Due to the interaction of these factors, we forecast growth
in demand and further normalization of the real estate market.

Broadly  speaking, market  development continues  to depend  largely on external
factors,  primarily the geopolitical situation  and general consumer confidence.
The results of recent years have confirmed that demand for our homes exists even
in a challenging environment.

In  the completed year 2025, we handed over  139 units out of a possible 194 and
realized  nearly  66% of  the  maximum  possible  sales revenue, i.e., EUR 49.3
million  out of  a possible  EUR 75 million.  The result  is consistent with the
forecast  range adjusted in  the autumn (EUR  45-50 million), but reflecting the
timing of construction completion and home handovers, it remained lower compared
to  the more  ambitious expectation  set at  the beginning  of the year (EUR 55
million).

We  are entering 2026 with  significantly larger volume.  In buildings completed
and  to be completed during the  year, we have the potential  to hand over up to
268 homes  and commercial spaces  with an estimated  sales revenue volume of EUR
86 million.  We forecast dynamics similar to the  previous year, in the order of
realizing  2/3 of the  possible volume,  which would  mean approx. 20% growth in
sales revenue compared to the 2025 result.

At  the beginning of the year, we have  a presale portfolio of 101 homes and EUR
33.7 million  in six different projects. In addition to market demand, the sales
revenue  achieved  during  the  year  also  depends  on the timely completion of
construction and handovers before the end of the year.

The  2025 net  profit  of  EUR  5.4 million  and  the return on equity of 28.1%
exceeded  our long-term return  on equity target  of 20% as expected. Along with
sales revenue growth, we also expect net profit growth in 2026 and exceeding the
20% return on equity target.

As  is characteristic of  Liven's business model,  construction loan volumes are
cyclical and depend heavily on the composition of the development portfolio. Due
to  ongoing construction works, we expect  construction loan volumes to increase
until  mid-2026. In the second half of the year, especially in the last quarter,
we expect a rapid decrease in the loan balance due to home handovers.

Real estate development is characterized by a long time lag in financial results
and  a temporal shift between marketing expenses  and sales revenue. We laid the
foundation  for a good result in 2026 with sales and construction started in the
past  year, and we continue  to work towards the  results of 2027 and subsequent
years.  Of  the  projects  currently  under  construction, Peakorter I phase and
Wohngarten in Berlin, Germany, will be completed in 2027. In the near future, we
hope for the completion of the ongoing planning proceedings regarding the Kadaka
tee 88 property and later during 2026 also regarding the Erika 12 property.

New property acquisitions made in the second half of the completed year 2025 add
both  a new region and temporal continuity to the development portfolio. Liven's
development  portfolio continues  to have  sufficient volume  for the  next 4-5
years,  but to increase  the development portfolio,  we are actively looking for
new  properties and negotiating their  acquisition or development in cooperation
with landowners.


Joonas Joost
Liven AS CFO
E-mail: [email protected]