Graphisoft Park Q1 earnings up despite lower rental revenue

Office Market

Graphisoft Park

Image by graphisoftpark.com

First-quarter after-tax profit of Graphisoft Park, which owns and operates a business park in the north of Budapest, rose 17.5% year-on-year to EUR 1,340,000, the company said in an earnings report released after the closing bell on Tuesday, according to state news wire MTI.

Graphisoft Park said the earnings were "in line with our expectations", in spite of a 3% decline in rental revenue to EUR 3,640,000. 

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.

Graphisoft Park acknowledged occupancy "declined slightly" by the end of 2020, but said it did not expect "any further significant vacancies".

Graphisoft Park confirmed earlier guidance for flat 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 241,571,000 at the end of March.

 

ADVERTISEMENT

Climate change hurts economy, but creates new business oppor... Analysis

Climate change hurts economy, but creates new business oppor...

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Dentons rehires banking and finance partner Appointments

Dentons rehires banking and finance partner

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

SUPPORT THE BUDAPEST BUSINESS JOURNAL

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.