Dear Investor,
As we enter 2025, optimism abounds with encouraging signs of recovery in the European real estate market. This recovery presents opportunities to strengthen our commitment to sustainability and solidify Estateguru’s position as a financially sound and reliable partner for both investors and borrowers. Having achieved profitability in 2024, we are well-positioned to maintain a stable and resilient foundation that continues to deliver value to our community.
This autumn, the total volume of loans issued exceeded €850 million, with investor earnings surpassing €86 million. By next year, we are set to surpass €1 billion in cumulative loans issued, underscoring our consistent performance. Estateguru remains the largest real estate investment platform in the Baltics, having financed more than all our regional competitors combined. Over the past decade, we have delivered an average annual interest rate of 10% to investors, reflecting our unwavering commitment to sustainability and reliability.
2024 highlights
In 2024, we remained focused on enhancing portfolio quality, resolving legacy portfolio challenges, supporting funding for businesses in the Baltics, and delivering consistent returns to our investors. Achieving sustainability and profitability continued to be key metrics in ensuring long-term success. Below is a comprehensive summary of our 2024 performance metrics:
- Over €80 million new loans issued in 2024, with more than €20 million already repaid within the same year.
- Strong portfolio performance in 2024, with 97% of loans performing or repaid.
- Investors earned €12.6 million in profits
- Average investor return reached an impressive 10.61%
- €116 million was repaid principal, including €14.85 million recovered principal.
- Best recovery year so far with many preparations done for 2025 recoveries
- Achieved profitability as a company, marking a successful close to the year.
For more details, check out our 2024 recap.
Performance overview
With the recent shifts in Euribor, we have become a valuable financing partner for strong market players who previously relied on smaller local banks. This has not only created new investment opportunities but also reinforced the sustained trust of our growing community of investors and borrowers. We have continued to enhance risk management, optimizing portfolio performance, and empower investors with tools like Moody’s loan evaluation methodology.
In 2024, Estateguru facilitated €80.7 million in loans for investors across 108 countries. While most of these loans have yet to reach maturity, we can draw insights from 2023, during which €99 million in real estate-backed loans were funded. Of these, 97% are either repaid or remain performing, with only 3% currently in recovery and strong statistics on recoveries already. The weighted average return for these loans stands at 9.42%, highlighting strong and stable performance across the years.
From the loans facilitated in 2024, over €20 million has already been successfully repaid to investors, demonstrating year-on-year growth in loan performance. However, the majority of these loans have not yet reached maturity, including some that are still being originated. We take pride in this progress and remain committed to sourcing new investment opportunities while maintaining a strong focus on recovery management.
Recoveries and repayments
In 2024, significant efforts and resources were directed toward portfolio recovery, with a particular focus on Germany. Across all active markets where more than €116 million euros were repaid, €14.85 million was recovered from defaulted loans, resulting in a 7.6% return on investment for all historically recovered loans. Investors earned €12.6 million in total profits during the year.
Since its inception, Estateguru has recovered a total of more than €52 million in loans. It is important to note that the ratio of written-off loans remains at the level of 0.01% of the total portfolio. This illustrates the company’s continuous ability to stand for investors’ interest in complex situations and makes Estateguru arguably one of the most experienced peer-to-peer lenders within default recoveries.
While the pace of recoveries in the German market has been slower than anticipated, substantial progress has been made in the legal proceedings for nearly all affected loans. Settlement agreements are being reached in selected cases, and investors will be informed of any confirmed developments.
We prioritize transparency and understand investors’ need for updates. However, to protect recovery efforts and prevent misuse by hostile borrowers, we limit the sharing of specific details, as strongly advised by our German service provider, Steinberg Management, in early 2024. Our focus is on safeguarding investors and recovering loans efficiently. In 2025, our promise remains unchanged: we will actively work on recoveries and promptly inform investors of all significant developments.
As with any investment, there is always a degree of risk involved, including the potential for partial or total loss of capital, and we encourage all investors to remain mindful of these inherent risks. Our team continues to work proactively to safeguard your investments and maximize recoveries, but we recommend diversifying your portfolio and carefully evaluating your risk tolerance to make informed investment decisions.
Path to profitability in 2024
At the beginning of 2024, we set a strategic objective to transition from a high-growth, capital-intensive approach to a model focused on sustainable growth. I’m happy to share that by the end of the year, the company became profitable. A fully audited annual report will be published in July.
We remain committed to maintaining a financially strong and sustainable platform, which we believe is in the best interests of our investors. This approach ensures continued opportunities to invest in new projects while generating consistent returns.
Looking ahead to 2025
In 2025, Estateguru’s top priority will be ensuring effective recoveries to safeguard portfolio quality. Alongside this, we will focus on strengthening our core Baltic markets, prioritizing Latvia and Lithuania to balance loan volumes across the region and support mid-term growth targets. To further enhance portfolio quality and streamline operational efficiency, we will progressively phase out portfolios in non-active regions.
A key focus this year is to secure a market-leading position by driving consistent month-on-month growth in issued loans, with volumes expected to reach a stable €10M+ per month by the second half of 2025. At the same time, we will continue to foster stronger communities among borrowers, affiliates, and investors through enhanced engagement.
Estateguru remains on a profitable growth path, increasing operating reserves and ensuring financial stability. In Q1, we will launch our mobile app to deliver an improved user experience. We are also committed to maintaining institutional-grade quality standards, with fewer defaults and timely project completions to strengthen investor confidence.
We wish to express our gratitude to all investors who have been with us over the years, and we look forward to a successful collaboration in 2025!
Kind regards,
Mihkel Stamm
Chief Executive Officer
