A webinar on the presentation of the results (in Estonian) will take place on 29 October at 13:00 (EET), more information. English translation of the webinar transcription will be made available on https://liven.ee/en/investor/.
Summary of the third quarter
There were no new completions during the third quarter. We handed over only 7 previously completed homes, which is why sales volume was low and we recorded a net loss. Most of the year’s handovers and revenue will take place in the fourth quarter together with the completion of construction. The 2026 revenue target of EUR 59 million had been achieved or covered by contracts by the end of October. During the quarter, we acquired the Pärnu mnt 35/37/41 properties in the centre of Tallinn (the Cosmo project, more than 160 homes), and presales continued in new projects and phases, where the signing of sales contracts and the start of construction contracts take place in the last quarter of the year.
Overview of the third quarter and nine months of 2026
Activity in the residential real estate market remained stable in the third quarter of 2026. During the quarter, we signed 44 sales contracts (contracts under the law of obligations; Q3 2025: 60; Q2 2026: 57), including 1 in Berlin. Most new contracts came from the Iseära (16), Regati (10) and Luuslangi (8) projects. The relatively modest number of contracts was also affected by the fact that, in several projects, the conversion of reservations into sales contracts shifted largely into the fourth quarter. Over the nine months, we signed 155 sales contracts, 34% more than a year earlier (9 months 2025: 116).
The average weekly sales ratio for the quarter was about 1.2%, lower than in the second quarter (nearly 2.4%). The ratio varies with project sales and supply cycles. An average of 360 homes were on offer during the quarter, 30% more than in the previous quarter. According to Citify.eu, Liven’s market share in Greater Tallinn was about 8% in the nine months of 2026.
Sales contracts signed during the period that are not transferred under a real right contract within the same period are recognised as presales. As of the beginning of the quarter, the estimated monetary value of previously recognised presales was EUR 48.6 million, of which EUR 39.8 million was in projects planned for completion during 2026.
During the quarter, we signed new contracts in the sales revenue volume of EUR 13.1 million, and presales from new sales made during the quarter amounted to EUR 10.7 million. We enter the fourth quarter of 2026 with 205 contracts under the law of obligations and a presale volume of EUR 58.1 million, of which EUR 41.0 million is in buildings to be completed during 2026. Presales do not include Phase I of the Peakorter project, as the 50/50 joint venture results are not consolidated line by line and its sales revenue is not reflected in the consolidated results.
In the nine months, we signed new sales contracts worth EUR 39.3 million in revenue, of which EUR 32.0 million became presales. The presale portfolio has grown by EUR 24.4 million since the beginning of the year (beginning of 2026: EUR 33.7 million).
There were no new completions in the third quarter and we handed over 7 previously completed homes in the Regati project (Q3 2025: 15; Q2 2026: 12). Most of the year’s handovers take place in the fourth quarter.
Revenue for the third quarter of 2026 was EUR 3,675 thousand (Q3 2025: EUR 5,080 thousand; Q2 2026: EUR 4,503 thousand) and the loss before income tax was EUR 356 thousand (Q3 2025: profit of EUR 132 thousand; Q2 2026: loss of EUR 234 thousand).
During the first nine months of the year, we have handed over a total of 33 homes and commercial units (9 months 2025: 56), earned revenue of EUR 15,114 thousand (9 months 2025: EUR 14,399 thousand) and a loss before income tax of EUR 171 thousand (9 months 2025: profit before income tax of EUR 427 thousand).
The third quarter result was mainly affected by the small number of handovers. Gross profit for the quarter (EUR 449 thousand) did not cover distribution and administrative expenses (EUR 783 thousand). The net loss for the quarter was EUR 356 thousand and the net loss for the nine months EUR 555 thousand (Q3 2025: net profit of EUR 132 thousand; 9 months 2025: net profit of EUR 399 thousand).
As a result of continued construction and the acquisition of the Pärnu mnt properties, total assets grew by EUR 16,384 thousand during the quarter to EUR 116,570 thousand. Construction loans increased to EUR 25,188 thousand by the end of the quarter (30 June 2026: EUR 16,561 thousand) and other loan liabilities to EUR 45,854 thousand (30 June 2026: EUR 40,780 thousand), mainly due to the 60% bank loan financing of the Cosmo acquisition. Total loan liabilities reached EUR 71,042 thousand at the end of the quarter. Due to the construction cycle, loan liabilities peak just before buildings are completed. Most of this year’s handovers take place in the fourth quarter and we repay construction loans from the proceeds, so we expect loan liabilities to decrease significantly by the end of the year.
In line with our business model, operating cash flows were negative in both the third quarter and the nine months due to construction. Construction has been financed mainly with bank loans. Homes are handed over after completion in the last quarter of the year, which turns operating cash flows positive and repays the construction loans. During the quarter, cash and cash equivalents decreased by EUR 6,453 thousand to EUR 3,580 thousand, mainly due to the Cosmo acquisition.
Consolidated statement of financial position
| (in thousands of euros) | 30 September 2026 | 31 December 2025 | 30 September 2025 |
| Current assets | |||
| Cash and cash equivalents | 3,580 | 8,553 | 5,626 |
| Trade and other receivables | 3,253 | 1,456 | 1,332 |
| Prepayments | 1,605 | 531 | 1,643 |
| Inventories | 100,767 | 71,009 | 86,706 |
| Total current assets | 109,205 | 81,549 | 95,306 |
| Non-current assets | |||
| Trade and other receivables | 0 | 1,535 | 1,484 |
| Prepayments | 49 | 44 | 44 |
| Investment properties | 6,131 | 1,960 | 1,960 |
| Property, plant and equipment | 244 | 296 | 318 |
| Intangible assets | 428 | 467 | 456 |
| Right-of-use assets | 512 | 606 | 614 |
| Total non-current assets | 7,365 | 4,908 | 4,877 |
| TOTAL ASSETS | 116,570 | 86,457 | 100,183 |
| (in thousands of euros) | 30 September 2026 | 31 December 2025 | 30 September 2025 |
| Current liabilities | |||
| Borrowings | 19,219 | 11,882 | 2,784 |
| Trade and other payables | 18,585 | 13,822 | 17,021 |
| Provisions | 55 | 97 | 35 |
| Total current liabilities | 37,860 | 25,801 | 19,840 |
| Non-current liabilities | |||
| Borrowings | 51,823 | 34,850 | 59,777 |
| Trade and other payables | 410 | 2,065 | 1,868 |
| Provisions | 70 | 151 | 127 |
| Total non-current liabilities | 52,303 | 37,066 | 61,772 |
| Total liabilities | 90,163 | 62,866 | 81,612 |
| EQUITY | |||
| Share capital | 1,305 | 1,200 | 1,200 |
| Share premium | 14,187 | 9,586 | 9,581 |
| Share option reserve | 34 | 262 | 323 |
| Own (treasury) shares | -3 | -4 | -6 |
| Statutory capital reserve | 120 | 120 | 120 |
| Retained earnings (prior periods) | 11,318 | 7,012 | 6,953 |
| Profit for the year | -555 | 5,414 | 399 |
| Total equity | 26,407 | 23,590 | 18,571 |
| TOTAL LIABILITIES AND EQUITY | 116,570 | 86,457 | 100,183 |
Consolidated statement of comprehensive income
| (in thousands of euros) | 2026 III quarter (July–Sept) |
2025 III quarter (July–Sept) |
2026 9 months (Jan–Sept) |
2025 9 months (Jan–Sept) |
| Revenue | 3,675 | 5,080 | 15,114 | 14,399 |
| Cost of sales | -3,226 | -4,281 | -12,579 | -11,603 |
| Gross profit | 449 | 799 | 2,535 | 2,796 |
| Distribution costs | -418 | -376 | -1,430 | -1,410 |
| Administrative expenses | -365 | -326 | -1,111 | -1,166 |
| Other operating income | 14 | 32 | 52 | 254 |
| Other operating expenses | -14 | -9 | -40 | -29 |
| Operating profit | -334 | 120 | 6 | 445 |
| Finance income | 68 | 40 | 197 | 76 |
| Finance costs | -90 | -28 | -373 | -94 |
| Total finance income and costs | -22 | 12 | -177 | -18 |
| Profit before income tax | -356 | 132 | -171 | 427 |
| Income tax expense | 0 | 0 | -384 | -28 |
| Net profit for the period | -356 | 132 | -555 | 399 |
| Attributable to owners of the parent | -356 | 132 | -555 | 399 |
| Total comprehensive income for the period | -356 | 132 | -555 | 399 |
| Attributable to owners of the parent | -356 | 132 | -555 | 399 |
| Basic earnings per share | -0.027 | 0.011 | -0.044 | 0.033 |
| Diluted earnings per share | -0.026 | 0.011 | -0.043 | 0.033 |
Key events
In July, the group’s subsidiary Liven Kodu 25 OÜ signed a notarial contract to acquire the development properties at Pärnu maantee 35, 37 and 41 in central Tallinn (the Cosmo project). The transaction amounted to EUR 10 million and the estimated total investment is about EUR 40 million. Three 3–7-storey residential and commercial buildings with more than 160 homes are planned.
We started construction of the next seven terraced houses (43 homes) in Iseära (general contractor Tesron Ehitus OÜ; completion in autumn 2027).
Presales continued in Regati phase II, Kadakadabra and the next Iseära apartment buildings. In Regati phase II, we started signing contracts under the law of obligations.
During the quarter, we financed the acquisition of the Cosmo properties with a EUR 6 million Bigbank mortgage loan and refinanced the Kadakadabra property with a EUR 3.5 million Coop Pank mortgage loan. We also repaid the EUR 1.7 million unsecured loan raised earlier from investors to acquire the Wohngarten property.
Events after the reporting period
In October, we started construction of Regati phase II (102 homes and 6 commercial spaces; general contractor Mitt & Perlebach OÜ; first building to be completed in Q1 2028) and of three Iseära apartment buildings (34 homes; completion at the end of 2027).
In October, we also started signing sales contracts in Kadakadabra phase I. At the end of October, we launched presales of the first building in the final phase of Luuslangi (Jalami 7, 33 homes).
Economic environment overview
The Estonian economy continued to recover in the third quarter of 2026; GDP grew by 1.8% year-on-year in the second quarter. In September, the European Central Bank raised interest rates by 0.25 percentage points due to rising energy prices, and the 6-month Euribor rose to 3.07% by the end of the quarter (30 June 2026: 2.57%; 30 September 2025: 2.10%). Analysts expect one more rate rise this year. Eesti Pank’s September forecast projects growth of 2.6% in 2026 and 2.4% in 2027 and 2028.
Price growth accelerated at the end of the quarter. In the third quarter, consumer prices rose by an average of 2.4% year-on-year, but by 3.5% in September (Q2 2026: 2.3%), mainly due to higher fuel and energy prices (petrol +33.8%, diesel +58% year-on-year). Food prices fell by 1.2% year-on-year. Eesti Pank forecasts inflation of 3.1% in 2026 and 2.3% in 2027.
According to Statistics Estonia and our estimate, the average gross wage in the third quarter was about EUR 2,200, around 5% higher than a year earlier and still outpacing consumer prices. Income growth improves housing affordability, and banks report that demand for home loans remains strong despite rising interest rates.
Compared with the second quarter of 2026, the volume of new development sales offers in Tallinn remained at a similar level in the third quarter of 2026, while the average sales price grew modestly. According to Citify.eu, the average number of new apartment sales offers was 2,948 units (Q2 2026: 2,958 units; Q3 2025: 2,812 units), remaining nearly 5% higher year-on-year. The average price per square metre rose by 0.2% compared with the previous quarter (average for Q2 2026: EUR 5,227/m²; average for Q3 2026: EUR 5,236/m²) and was 4.7% higher than a year earlier (Q3 2025: EUR 4,999/m²).
According to Citify.eu, 402 sales contracts were signed in Tallinn in the third quarter, 6% more than in the previous quarter (Q2 2026: 379) but nearly 5% fewer than a year earlier (Q3 2025: 422). Around Tallinn, 246 apartments and terraced houses were sold in the quarter (Q2 2026: 239; Q3 2025: 202). In the nine months, 1,226 sales contracts were signed in Tallinn (9 months 2025: 1,147) and 701 apartments and terraced houses were sold around Tallinn (9 months 2025: 553). Transactions are growing much faster around Tallinn than in the city: by 27% versus 7% in the nine months.
The stock of completed unsold apartments in Tallinn decreased to 774 during the third quarter (30 June 2026: 797; 30 September 2025: 896). Completed apartments made up on average 28.2% of total supply in the quarter (Q2 2026: 27.6%; Q3 2025: 34.0%), clearly lower than a year earlier.
Outlook for the future
Third-quarter sales contracts were affected by several reservations converting into contracts only in the fourth quarter, so we expect the last quarter to be the strongest sales period of the year.
At the end of the nine months, the presale portfolio comprised 205 sales contracts worth EUR 58.1 million, of which EUR 41.0 million in buildings due for completion by year-end. Together with October sales in homes completed or completing this year and EUR 15.1 million of revenue earned in the nine months, the 2026 revenue target of EUR 59 million was achieved or covered by contracts by the end of October.
Most of the new home completions and handovers planned for 2026, and thus also revenue and profit, fall into the last quarter of the year. The annual revenue target remains unchanged, but achieving it requires all construction to be completed on time and the sold homes to be handed over to their new owners. Should the schedule of handovers planned close to the end of the year be extended, an estimated EUR 5 million of revenue may shift to the beginning of 2027.
With the handovers in the last quarter, we expect higher net profit for 2026, return on equity above target and a significant decrease in construction loans.
Results in 2027 and 2028 will be supported by Regati phase II and the next Iseära phase, started in the autumn (179 homes in total). 2027 will also benefit from homes already under construction, mainly in Peakorter phase I and Luuslangi.
At year-end, the focus has moved to activities that will deliver results in 2028. We are preparing to start construction in Kadakadabra phase I and the Juhkentali rental building (now Peatus), and we have launched presales in the final phase of Luuslangi.
Results for 2028–2031 will be significantly supported by this year’s acquisitions in Tallinn (Cosmo) and Berlin (Plantagenstraße 19 and Reichsstraße 101) and by Peakorter phase II (Erika 12), which awaits adoption of its detailed plan. In new acquisitions in Tallinn and Berlin, we focus mainly on projects that contribute to Liven’s results from 2030.
Our existing land portfolio enables us to continue growing business volumes and profit steadily and to keep return on equity above 20% over the long term.
The main risks associated with Liven’s business activities include market, operational and financial risks, including capitalisation and financing. Risk management is a central part of the group’s strategic management and aims to identify and minimise economic risks in order to achieve strategic and financial objectives.
Joonas Joost
Liven AS CFO
E-mail: joonas.joost@liven.ee
investor@liven.ee, liven.ee/en/investor
The interim report for the IV quarter and 12 months of 2026 will be published on 28 January 2027.
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