Graphisoft Park profit up sharply in 2017

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Net profit of Graphisoft Park, a listed company that owns a business park in the north of the capital, rose 20% to EUR 3.79 million last year, lifted by higher revenues and lower taxes, an earnings report released late Tuesday shows.

Revenues climbed 12% to EUR 10.6 million as the company handed over new developments to tenants, national news agency MTI reported.

The company paid corporate profit tax of EUR 217,000, down 61%, as its registration as the local form of a real estate investment trust (REIT) made it tax exempt late in the summer.

Graphisoft Park noted that it registered as a regulated real estate investment pre-company (SZIE) from July 31, 2017, and a regulated real estate investment company (SZIT) from January 1, 2018. The company form, comparable to a REIT, is exempt from corporate tax and local business tax, but must pay shareholders 90% of its profits as dividends.

Graphisoft Park explained that in order to comply with its status as a SZIT, its IFRS consolidated balance sheet and P&L statement would not be presented based on the historical cost of real estate minus depreciation, but on actual fair value, to be determined quarterly by an independent appraiser. Because of this, the consolidated earnings statement "may diverge significantly" from Graphisoft Parkʼs individual earnings statement, which remains the basis for calculating dividends, the company added.

To manage this issue, Graphisoft Park said that in future it would publish a financial statement following its earlier practice of presenting real estate at historical cost minus depreciation and a SZIT-compliant consolidated statement with figures "convergent" with those of Graphisoft Parkʼs individual report.

Graphisoft Park forecast net profit - "which is close to the expected profit which will be the basis of the 90% dividend rate" - of EUR 4.1 mln in 2018, and EUR 4.3 mln in 2019.

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