First-quarter pre-tax profit of Graphisoft Park, which owns and operates a business park in the north of Budapest, fell 13% year-on-year to EUR 1.141 million, state news wire MTI reports, citing an earnings report published yesterday.
Rental revenue rose 7% to EUR 3,771 mln and operating profit climbed 10% to EUR 1.812 mln but net interest expenses jumped 76% to EUR 533,000, weighing on earnings.
Graphisoft Park noted that the results are "pro forma", calculated using accounting policies before the company converted into the local form of a real estate investment trust (REIT).
As a REIT, the company is required to pay shareholders 90% of profit as dividend.
The estimated fair value of Graphisoft Parkʼs property portfolio stood at EUR 262.934 mln at the end of March. Net asset value at estimated fair value was EUR 194.877 mln.
Graphisoft Park noted that it had canceled a planned structured share repurchase in March, because of the coronavirus outbreak. Its board decided on payment of a EUR 30 mln dividend, comprising EUR 4.5 mln, or 90% of pro forma 2019 profit, and EUR 25.5 mln for the canceled buyback.
Graphisoft Park said the impact of the pandemic on its business may be less than on others but issued guidance for falling revenue and profit. It put net profit and rental revenue for both 2020 and 2021 at EUR 4 mln and EUR 13.9 mln, respectively.