Q1 Net Profit Over EUR 2 Million at Graphisoft Park

The pro forma net profit for the first quarter of 2025 at the Graphisoft Park office complex in Budapest is EUR 2.22 million, which is slightly higher by 4% than the same period of the previous year, the company has announced on the website of the Budapest Stock Exchange.

According to the execuitve summary of the report, this result is primarily due to the stable tenant base of the office park: the vacancy rate typical of the Budapest office market in recent years did not occur in Graphisoft Park, which – despite the decreasing rate of rent indexation – ensures the favorable development of sales revenue.

Graphisoft Park's occupancy rate has been stable at 94% for almost a year, significantly exceeding the current average of 86% for the Budapest office market. Despite the uncertain economic environment, our tenants are continuously extending their leases and are typically committed to longer terms than the national average. This is due, on the one hand, to the unique natural features of the Park, the environment created by the technological and IT focus, and, on the other hand, to the ability to flexibly adapt to changing tenant needs.

Significant contract extensions over the past year have increased the average remaining lease term to 5 years by the end of 2024, followed by several smaller contract renewals this year, reinforcing WAULT’s 5-year value. A figure that reflects tenant commitment even more is the average lease term since each tenant’s first lease agreement, which has increased to nearly 16 years this year.

"In the current unpredictable global economic environment, we are leaving our previously published 2025 forecast unchanged for the time being. We continue to expect continuous developments in line with ESG goals, including their cost implications, and we do not expect extraordinary compensation to be paid for early terminations of contracts, which was reported as one-off income in the previous year, so overall, based on our current estimates, a net profit of EUR 7 million is expected in 2025, which is lower than the previous year," the executive summary concludes.