Graphisoft Park H1 profit climbs to EUR 2.4 mln

Office Market

Image by graphisoftpark.com

After-tax profit of Graphisoft Park, which owns and operates a business park in the north of Budapest, rose 14.5% year-on-year to EUR 2,447,000 in H1, the company said in an earnings report released after the closing bell on Tuesday, according to a report by state news wire MTI.

Graphisoft Park said the earnings were "in line with our previously published forecasts", even as rental revenue declined 1.7% to EUR 7.287 mln.

The earnings are "pro forma" which show profit and loss according to the cost model and serve as the basis for Graphisoft Park's dividend. As the local form of a real estate investment trust (REIT), the company pays 90% of its pro forma earnings as dividend.

The company noted that the epidemic caused by the COVID-19 virus resulted in a protracted economic downturn, while the Park's tenant base, primarily in IT and biotechnology, remained stable.

The transformation of office use caused by the coronavirus has a noticeable impact on the demand for offices, however, no significant space reduction needs have arisen among Graphisoft Park tenants so far, and smaller reductions have allowed to meet growth needs of other tenants, they said.

Graphisoft Park confirmed earlier guidance for revenue of around EUR 14.5 mln and pro forma earnings of EUR 4.3 mln in 2021.

Estimated fair value of Graphisoft Park's property portfolio stood at EUR 241 mln at the end of June.

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