Unaudited consolidated interim report of Arco Vara for the first quarter of 2024

apartmentsin Kodulahe Residential Complex and the sale of Soodi 6 Residential Complex. In addition, we continue construction works inBulgariaand carry out detailed planning at Arcojärve. In the last three months, the pace of sales has slowed down a bit, causing Arco Vara Group's revenue and profit to be slightly below plan. Despite this, the company's capitalization remains very good, as the equity/asset ratio is almost 60%. The current yield for the last 4 quarters is also close to our target of 20%. The Arco Tarc team continues to build the Padel Center at 18 Helme Street, which is also likely to benefit from a projected slight decrease in final construction costs. The padel center is fully covered by a lease agreement and will be open for sports in the last quarter of the year. Our Bulgarian team is also looking to continue the construction and development of the Botanica Lozen Residences. Approximately 40% of the project under development, which should be completed in 9 months, has already been sold. In the second quarter we expect to receive the construction permit for the 2nd phase of Botanica Lozen project, which will allow us to start sales and construction of buildings, if market conditions are favorable.

Looking at the next quarter, our main challenge is the sale of the already completedhousesin the Kodulahe and Kuldlehe buildings, which should provide certainty for the commencement of new construction work. We also consider the acquisition of a new development site, which is considered extremely important for the company over the next five years in light of the long-term nature of the business.

In the period from January to March 2024, the group's revenue amounted to 990 thousand euros, four times the revenue of 253 thousand euros for the same period in 2023. In the first quarter of 2024, the group incurred an operating loss of 208 thousand euros and a net loss of 349 thousand euros. In the period from January to March 2024, the group sold 3apartmentsand 1 commercial space. Comparing with 2023, when the final sales of only 1 parking space in the group's projects were formalized, a significant increase in turnover can be seen. During the first three months of 2024, the group's debt burden increased by 1,951 thousand euros, reaching a level of 10,559 thousand euros by March 31, 2024. At that time, the average weighted annual interest rate on interest-bearing liabilities amounted to 7.8%. This is a decrease of 0.4 percentage points compared to December 31, 2023. Overall, our financial position is impressive and our future plans are very ambitious.