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Graphisoft Park Q4 profits steady at €742,000

Graphisoft Park, a listed company that runs a business park in the north of the capital, had after-tax profit of €742,000 in the fourth quarter, level with the same period a year earlier, an earnings report released late yesterday shows, according to Hungarian news agency MTI.

Revenue slipped 3% to €2,339,000 and EBITDA edged down 1% to €2,243,000. But operating profit rose 1% to €1,190,000 on lower depreciation and amortization.

For the full year, Graphisoft Parkʼs profit climbed 24% to €2,979,000 as revenue rose 12% to €9,484,000.

The company attributed the strong performance to improving occupancy rates – reaching 98% in Q4 from 95% in the base period – and stable rents. Graphisoft Parkʼs strategy remains not to compete with the “artificially low, therefore unsustainable rates on Budapestʼs overcrowded office market” and provide its tenants with a “micro-silicon-valley”, it added.

Graphisoft Park noted it had initiated construction of an additional 8,000 sqm of office space and an underground parking lot with more than 300 spaces after its biggest tenant, SAP, renewed its lease. The first phase of the investment will be delivered by the beginning of 2017.

Graphisoft is paying for the development with a ten-year €16.5 million loan from Erste Bank Hungary. Some HUF 4 billion of the credit will be disbursed at preferential rates under the National Bank of Hungaryʼs Funding for Growth Scheme, and the remaining €5 mln will be disbursed at market rates, the company announced earlier.

At present, there are 53,000 sqm of office space in the park. Graphisoft Park put the net asset value at fair value at €112,467,000 at the end of 2015. The value works out to €11.2 per share. Graphisoft Parkʼs share price closed at HUF 2,365 (€7.6) yesterday.