Graphisoft Park Q4 profits steady at €742,000

Office Market

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.


Business Sentiment Up, Consumer Confidence Down in September Analysis

Business Sentiment Up, Consumer Confidence Down in September

Horthy Statue to be Unveiled in Parliament Parliament

Horthy Statue to be Unveiled in Parliament

UPS Appoints Regional Director Appointments

UPS Appoints Regional Director

Completion of Metro Line M3 Renovation Delayed City

Completion of Metro Line M3 Renovation Delayed


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.