2020 Annual Report of Arco Vara - Seite 2

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.