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Arco Vara AS

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097900BHCB0000066171

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Majandustegevusalad

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Majandusaasta aruanne

Teate ID

8687

Esitamise kuupäev ja aeg

01.04.2021 09:39:42

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Pealkiri

Arco Vara majandusaasta aruanne 2020

Teade

JUHATAJA KOMMENTAARID

2020. aasta  alguses  oodati  tänu  COVID-19 piirangutele  ka kinnisvarasektoris
hindade  kõikumist ja kiiret turukorrektuuri, mida uusarenduste puhul ei tulnud.
Arco  Vara ja meie  partnerid reageerisid kiiresti,  et piirata viiruse levikut,
mis tagas objektide tähtaegse valmimise ning seatud müügieesmärkide täitmise.

Oluliseks  arenguks  saab  pidada  arenduslaenude  paranenud  tingimusi,  mis on
olulised  Eesti  arendusprojektide  edukaks  läbiviimiseks  ka  aastatel 2021 ja
2022. Bulgaarias  on peamiseks märksõnaks Iztok Parkside kasutusloa saamine, kus
enamus lõppmüügid toimusid 2021. aasta I kvartalis.

Arendustegevuse  Eesti  poolel  on  Arco  Vara saavutanud usaldusväärse arendaja
maine, mida näitab Kodulahe ja Kodukalda projektide edukus. Tänaseks on Kodulahe
3. etapi   hoone  väljamüüdud  ning  4. ja  5. etapi  hoonetest  eelmüüdud  juba
ligikaudu  70%. Tartu Kodukalda projektis on  veel müümata 4 korterit, kuid huvi
arenduse  kohta  on  püsiv,  mis  annab  kindlust  lõppmüükide  saavutamiseks II
kvartalis.

Valmis  ja valmivatele projektidele lisaks alustasime 2020. aasta lõpus Kodulahe
6. etapi  projekteerimist, mille avalik  müük algab planeeritust  3 kuud varem -
2021. aasta III kvartalis.

Bulgaaria  arendustegevus  saavutas  pikalt  oodatud  Iztok Parkside kasutusloa,
mille   väljamüügi   eesmärk  on  2021. aasta  II  kvartal.  Hetkel  on  sealses
arendusprojektis müüdud 66 korterit 67-st.

Ärikinnisvara   objekt   Madrid  BLVD  oli  2020. aasta  vältel  ligikaudu  95%
täituvusega,  mis läinud aastat silmas pidades  on sealse meeskonna poolt edukas
saavutus.  Tänu hoone mitmele  otstarbele ja antud  hoonet soosinud piirangutele
oli  võimalik üürnikel äritegevust  enamuse aastast jätkata,  mis tagas oodatust
väiksema müügitulu vähenemise.

Lähtudes  2020. aasta tulemustest, tuues  välja 2,5 korda suurenenud omakapitali
tootluse   ja   puhaskasumi   marginaali   ligi   2-kordset  kasvu,  oleme  teel
arendusmahtude  kasvatamisele  järgneva  kolme  aasta  jooksul. Seda toetavad ka
2021. aasta alguses sõlmitud lepingud Paldiski mnt 124b ja Soodi tn 6 kinnistute
arendamiseks.

2021. aastal  on peamisteks ülesanneteks Kodulahe  6. etapi edukas algus ja uute
arendusprojektide projekteerimiste alustamine nii Eestis kui Bulgaarias.


PÕHILISED NÄITAJAD

Grupi 2020. aasta müügitulu oli 14 056 tuhat eurot, mis on 7% suurem 2019. aasta
müügitulust 13 109 tuhat eurot.

2020. aasta  ärikasum oli 1 449 tuhat eurot ja puhaskasumiks kujunes 1 012 tuhat
eurot,  2019. aasta lõppes  ärikasumiga 950 tuhat  eurot ja puhaskasum 388 tuhat
eurot.

2020. aasta  müüdi grupi poolt arendatavates projektides kokku 81 korterit ja 1
kinnistu Lätis, 2019. aastal 82 korterit.

Grupi  laenukoormus (netolaenud) langes  2020. aastal 2 951 euro võrra, tasemele
8 499 tuhat eurot 31.12.2020 seisuga.

Grupi intressikandvate kohustuste kaalutud keskmine intressimäär oli 31.12.2020
seisuga 4,8%, mis on 0,6% võrra kõrgem võrreldes 31.12.2019 seisuga.


TEGEVUSTE ARUANNE

Grupi  müügitulu oli 2020. aastal 14 056 tuhat eurot (2019: 13 109 tuhat eurot),
sealhulgas  kinnisvara müük grupi enda arendusprojektides moodustas 13 129 tuhat
eurot (2019. aastal 12 152 tuhat eurot).

Muust  müügitulust moodustas suurema osa  kaubandus- ja kontoripindade renditulu
Madrid  Blvd hoonest Sofias,  mis oli 2020. aastal  614 tuhat eurot (2019. aasta
696 tuhat   eurot).   Covid-19 tõi   2020. aastal   kaasa   muudatusi   rentnike
majanduslikus  olukorras. Mitmed rentnikud 2020. aastal vahetusid, aga seda Arco
Varale    soodsamas   suunas.   2020. aasta   lõpus   olid   95% kaubandus-   ja
kontoripindadest välja renditud.

2019. aasta lõpus valminud Kodulahe Kvartali II etapis (Lahepea 9) müügitulu jäi
suuremas  osas  2019. aastasse.  Aruande  esitamise  ajal  on  müümata äripind -
viimane  korter müüdi 2020. aasta II  kvartalis. 2020. aastal sai Lahepea 9 maja
kasutusloa.

2020. aasta  IV kvartalis lõppesid ehitustööd  Kodulahe Kvartali III etapis, kus
valmis   50 korteriga   eluhoone  aadressile  Soodi  4 Merimetsas.  Aastaaruande
avaldamise päevaks on kõik korterid müüdud ning majal on olemas kasutusluba.

2020. aasta  lõpus alustati Kodulahe  IV-V etapi hoonete  ehitust. Valmimisel on
kaks  36 korteriga eluhoonet  aadressile Pagi  3 ja Pagi 5 Merimetsas. Lõppmüügi
faasi jõuavad kortermajad umbes pooleteise aasta pärast. Aastaaruande avaldamise
päevaks on 72 korterist 38 eelmüüdud ja 18 broneerituna notari ootel.

2020. aasta  IV kvartalis algasid lõppmüügid  Oa tänava kinnistutel Tartus, kuhu
rajati 4 väiksemat kortermaja Kodukalda projektinime all. Vahearuande avaldamise
päevaks on 30 korterist müüdud 26 korterit.

Iztok  Parkside projekti realiseerimine Sofias hoogustus 2020. aasta detsembris,
mil  hoone sai  kasutusloa. Aruande  avaldamise päevaks  on eelmüügita 1 korter.
Projekt  koosnes  kolmest  kortermajast  kokku  67 korteriga. Kuna korterid anti
bürokraatlike  takistuste tõttu kätte aasta hiljem kui lubatud, soovib 2 klienti
hüvitist  kokku summas  40 tuhat eurot.  Kuna nimetatud korteriomanikud soovivad
valuraha,  aga  mitte  korteritest  loobuda,  ei  ole hüvitise maksmise kohustus
realistlik ja reservi selleks pole moodustatud.

Botanica Lozeni projekti oli kavandatud preemiumklassi arendus, mis Covid-19
taandumiseni on otsustatud ajutiselt külmutada. Ehitus võiks soodsate
turutingimuste jätkudes alata 2021. aasta kolmandas kvartalis, jaotatuna
väiksemateks etappideks. Projekti raames on plaanis rajada 179 kodu (korterid ja
eramud), kaubanduspinnad ja lasteaed. Oodatav ehitusaeg on vähemalt 2 aastat.


KONSOLIDEERITUD KOONDKASUMIARUANNE

---------------------------------------------------------
  EUR tuhandetes                          2020      2019
---------------------------------------------------------


  Müügitulu enda kinnisvara müügist     13 129    12 152

  Müügitulu teenuste müügist               927       957

  Müügitulu kokku                       14 056    13 109



  Müüdud kinnisvara ja teenuste kulu   -11 313   -11 295

  Brutokasum                             2 743     1 814



  Muud äritulud                             10       137

  Turustuskulud                            -89       -96

  Üldhalduskulud                          -922      -777

  Muud ärikulud                           -273      -121

  Kahjum kinnisvara allahindlusest         -20        -7

  Ärikasum                               1 449       950



  Finantstulud- ja kulud                  -437      -562

  Aruandeperioodi puhaskasum             1 012       388



  Aruandeperioodi koondkasum             1 012       388
---------------------------------------------------------

---------------------------------------------------------
  - tava                                  0,11      0,04

  - lahustatud                            0,11      0,04
---------------------------------------------------------


KONSOLIDEERITUD FINANTSSEISUNDI ARUANNE

---------------------------------------------------------------------
  EUR tuhandetes                             31.12.2020   31.12.2019
---------------------------------------------------------------------


  Raha ja raha ekvivalendid                       2 200          870

  Nõuded ja ettemaksed                            1 344          544

  Varud                                          14 960       15 807

  Käibevara kokku                                18 504       17 221



  Nõuded ja ettemaksed                                5            0

  Kinnisvarainvesteeringud                        9 564       11 051

  Materiaalne põhivara                               22          265

  Immateriaalne põhivara                            136          217

  Põhivara kokku                                  9 727       11 533

  VARAD KOKKU                                    28 231       28 754



  Laenukohustused                                 3 482        6 416

  Võlad ja saadud ettemaksed                      3 308        3 135

  Lühiajalised kohustused kokku                   6 790        9 551



  Laenukohustused                                 7 217        5 904

  Pikaajalised kohustused kokku                   7 217        5 904

  KOHUSTUSED KOKKU                               14 007       15 455



  Aktsiakapital                                   6 299        6 299

  Registreerimata aktsiakapital                     273            0

  Ülekurss                                        2 285        2 285

  Kohustuslik reservkapital                       2 011        2 011

  Muud reservid                                       0          245

  Jaotamata kasum                                 3 356        2 459

  Emaettevõtte omanikele kuuluv omakapital       14 224       13 299

  OMAKAPITAL KOKKU                               14 224       13 299

  KOHUSTUSED JA OMAKAPITAL KOKKU                 28 231       28 754
---------------------------------------------------------------------


Tiina Malm
Finantsjuht
Arco Vara AS
Tel: +372 614 4630
www.arcovara.com

Teate sisu inglise keeles

Pealkiri

2020 Annual Report of Arco Vara

Teade

GROUP CEO'S REVIEW

At the beginning of 2020, due to the constraints of COVID-19, price fluctuations
and  rapid market adjustment were  also expected in the  real estate sector, but
this did not take place for new developments. Arco Vara and our partners reacted
quickly to limit the spread of the virus, which ensured the timely completion of
the sites and the fulfilment of the set sales targets.

The  improved  terms  of  development  loans  can  be  considered  an  important
development,  which are important for  the successful implementation of Estonian
development  projects also  in 2021 and  2022. In Bulgaria,  the main keyword is
obtaining an usage permit for Iztok Parkside, where most of the final sales took
place in the first quarter of 2021.

On  the  Estonian  side  of  development  activities, Arco Vara has achieved the
reputation  of  a  reliable  developer,  which  is  shown  by the success of the
Kodulahe  and Kodukalda projects. Today, Kodulahe Phase 3 building has been sold
out  and approximately 70% of  the Phase 4 and  Phase 5 buildings have been pre-
sold.  There are  4 unsold apartments  in the  Tartu Kodukalda  project, but the
interest  in the development is constant, which provides certainty for achieving
final sales in the second quarter.

In  addition to  the finalised  projects and  the projects  to be  completed, we
started  designing the 6th stage of Kodulahe at the end of 2020, the public sale
of  which will commence  3 months earlier than  had been planned  - in the third
quarter of 2021.

The  Bulgarian development activity achieved  the long-awaited authorisation for
use of Iztok Parkside, which is expected to be sold out in the second quarter of
2021. At  the moment, 66 out  of the 67 apartments  have been sold  there in the
development project.

The  commercial property site Madrid BLVD had an occupancy rate of approximately
95% during  2020, which is a  successful achievement for  the team there, taking
into  account the situation  of last year.  Due to the  multiple purposes of the
building  and the restrictions that favoured the building, the tenants were able
to  continue their business  for most of  the year, which  ensured a lower-than-
expected decrease in sales revenue.

Based  on the  results of  2020, and pointing  out the  2.5-fold increase in the
return  on equity and an increase of the net profit margin of almost 2 times, we
are  on the track to increase development  volumes in the next three years. This
is  also supported by the  contracts concluded at the  beginning of 2021 for the
development  of the registered immovables at Paldiski road 124b and Soodi street
6.

In  2021, the main tasks are  the successful start of  the 6th stage of Kodulahe
and  the  start  of  designing  new  development  projects  in  both Estonia and
Bulgaria.


KEY PERFORMANCE INDICATORS

In  2020, the Group's revenue  was 14,056 thousand euros,  which is 7% more than
the revenue of 13,109 thousand euros in 2019.

In  2020, the Group's operating profit (=EBIT)  was 1,449 thousand euros and net
profit  1,012 thousand euros. In  2019, the Group made  operating profit of 950
thousand and net profit of 388 thousand euros.

In  2020, 81 apartments and one land plot in Latvia were sold in the development
projects of the Group (in 2019: 82 apartments).

In  2020, the Group's debt  burden (net loans)  decreased by 2,951 euros down to
the  level of  8,499 thousand euros  as of  31 December 2020. As  of 31 December
2020, the  weighted average annual interest rate of interest-bearing liabilities
was 4.8%, which is 0.6% higher than on 31 December 2019.



OPERATING REPORT

The   revenue   of   the   Group  totalled  14,056 thousand  euros  in  2020 (in
2019: 13,109 thousand  euros), including revenue from  the sale of properties in
the  Group's own development projects in the amount of 13,129 thousand euros (in
2019: 12,152 thousand euros).

Most  of the other revenue consists of  rental income from commercial and office
premises  in Madrid Blvd  building in Sofia,  amounting to 614 thousand euros in
2020 (in  2019: 696 thousand  euros).  In  2020, Covid-19 brought changes in the
economic  situation of tenants. Several tenants have been replaced during 2020,
but  in a more  favourable direction for  Arco Vara. In  the end of 2020, 95% of
retail and office spaces were rented out.

In  the II Stage of the Kodulahe quarter, which was completed and mainly sold in
2019, commercial space remains unsold - the last apartment was sold in Q2 2020.
In 2020, Lahepea 9 house received usage permit.

In  Q4 2020, construction works ended in Stage  III of Kodulahe quarter, where a
building with 50 apartments was finished at Soodi 4 Merimetsa. By the publishing
date  of the annual  report, all apartments  have been sold  and the house has a
usage permit.

At  the  end  of  2020, the  joint  construction  of Stages IV and V of Kodulahe
started.  Two  36-apartment  residential  buildings  at  Pagi  3 and  Pagi  5 in
Merimetsa  are under construction. The apartment buildings will become ready for
final  sale in about 1,5 years. By the publishing date of the annual report, 38
apartments of total 72 have been presold and 18 booked for waiting for notary.

In  Q4 2020, final sales  of Oa street  plots in Tartu  started, where 4 smaller
apartment  buildings were constructed  under the Kodukalda  project name. By the
publishing time of the interim report, 26 of the 30 apartments have been sold.

In  Iztok Parkside project in  Sofia, the majority of  final sales of apartments
started in December 2020, after receiving a usage permit. By the publishing date
of  the annual report, presale agreement for 1 apartment has not been concluded.
Iztok  project  consists  of  three  apartment  buildings  with  a  total of 67
apartments. As the apartments were handed over a year later than promised due to
bureaucratic  obstacles, 2 clients want compensation in  the total amount of 40
thousand  euros.  As  these  apartment  owners  want  compensation  for pain and
suffering, but not to give up the apartments, the obligation to pay compensation
is not realistic and no reserve has been formed for this purpose.

In  the Lozen project near Sofia in  Bulgaria, design works have been completed.
As  the development was designed as a premium class product, it has been decided
to temporarily freeze the project and wait for the market to recover from Covid-
19. Under  favourable  market  conditions,  construction  may start in Q3 2021,
divided  into smaller sub-stages. The project foresees construction of 179 homes
(apartments  and houses), commercial spaces and a kindergarten. Minimum expected
construction period is 2 years.

In  the third  quarter of  2020, 1 plot of  land with  no book value was sold in
Latvia  for  40 thousand  euros.  As  of 31 December 2020, 4 Marsili residential
plots remained unsold in Latvia.


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

-----------------------------------------------------------------
  In thousands of euros                           2020      2019
-----------------------------------------------------------------


  Revenue from sale of own real estate          13,129    12,152

  Revenue from rendering of services               927       957

  Total revenue                                 14,056    13,109



  Cost of sales                                -11,313   -11,295

  Gross profit                                   2,743     1,814



  Other income                                      10       137

  Marketing and distribution expenses              -89       -96

  Administrative expenses                         -922      -777

  Other expenses                                  -273      -121

  Loss on revaluation of investment property       -20        -7

  Operating profit                               1,449       950



  Financial income and costs                      -437      -562

  Net profit for the period                      1,012       388



  Total comprehensive income for the period      1,012       388
-----------------------------------------------------------------

-----------------------------------------------------------------
  Earnings per share (in euros)

  - basic                                         0.11      0.04

  - diluted                                       0.11      0.04
-----------------------------------------------------------------


CONSOLIDATED STATEMENT OF FINANCIAL POSITION

-------------------------------------------------------------------------------
  In thousands of euros                       31 December 2020 31 December 2019
-------------------------------------------------------------------------------


 Cash and cash equivalents                               2,200              870

 Receivables and prepayments                             1,344              544

 Inventories                                            14,960           15,807

 Total current assets                                   18,504           17,221



 Receivables and prepayments                                 5                0

 Investment property                                     9,564           11,051

 Property, plant and equipment                              22              265

 Intangible assets                                         136              217

 Total non-current assets                                9,727           11,533

 TOTAL ASSETS                                           28,231           28,754



 Loans and borrowings                                    3,482            6,416

 Payables and deferred income                            3,308            3,135

 Total current liabilities                               6,790            9,551



 Loans and borrowings                                    7,217            5,904

 Total non-current liabilities                           7,217            5,904

 TOTAL LIABILITIES                                      14,007           15,455



 Share capital                                           6,299            6,299

 Unregistered share capital                                273                0

 Share premium                                           2,285            2,285

 Statutory capital reserve                               2,011            2,011

 Other reserves                                              0              245

 Retained earnings                                       3,356            2,459

 Total equity attributable to owners of the
 parent                                                 14,224           13,299

 TOTAL EQUITY                                           14,224           13,299

 TOTAL LIABILITIES AND EQUITY                           28,231           28,754
-------------------------------------------------------------------------------


Tiina Malm
CFO
Arco Vara AS
Phone: +372 614 4630
www.arcovara.com