Graphisoft Park Reports Lower 2025 H2 Net Profit

The pro forma net profit for the first half of 2025 at the Graphisoft Park office complex in Budapest is EUR 3.88 million, which is almost EUR 400,000 less than the same period of the previous year. However, the difference is primarily the result of one-off items from the previous year, as the lump-sum compensation paid by certain tenants in 2024 Q2 for the reduction of rent before the expiry of their contracts significantly increased the result of the comparative period, the company says on the website of the Budapeest Stock Exchange.

Though Graphisoft Park’s occupancy rate remains stable at 95% at the end of the first half of 2025, significantly exceeding the current average of 87% for the Budapest office market. The reduction in space of some tenants was compensated by the growth needs of other tenants, which the company was able to meet by flexibly adapting tochanging tenant needs.

Partly due to this, and partly due to the unique natural features of the park, and the milieu created by the technological and IT focus, our tenants are continuously extending their leases despite the uncertain economic environment and are typically committed to longer terms than the national average.

As a result of significant contract extensions concluded last year and several successful, smaller contract renewals this year, the average remaining lease term, WAULT, is 4.8 years. A figure that reflects tenant commitment even more is the average lease term since each tenant’s first lease agreement, which has exceeded 16 years this year.

Based on current office market trends, the company considered that a significant increase in demand for offices was not expected in the near future, so in 2024 the Company decided to examine the possibility of residential and service development in the larger southern development area.

In this regard, a cooperation agreement was concluded with Synergy Construction Hungary Ltd., in which the partner company was given the opportunity to purchase the area or the project company owning it. On June 23, 2025, Synergy Construction Hungary Ltd. indicated its intention to purchase, which was accepted by the Company. The transaction was successfully completed in July 2025, as a result of which the expected pro forma net profit for 2025 will be EUR 11 million higher.

The Company's Board of Directors will make a proposal for the use of the extraordinary one-off profit from the sale of the subsidiary later, considering the Group's maturing loan portfolio and the refinancing options available at the current high interest rate level.

"However, despite this, we believe that although the first half of the year was slightly better than expected, due to the current, still unpredictable global economic environment, we are leaving our previous forecast for this year unchanged, which indicated rental revenue of EUR 16.7 million and pro forma profit from ordinary operations of EUR 7 million. This, together with the extraordinary gain from the sale of the subsidiary, could result in a total pro forma profit of around EUR 18 million in 2025," the report points out.

Graphisoft Park, covering more than 80,000 square meters, is one of Budapest’s most innovative office complexes. Located in North-Buda submarket, directly along the Danube River, it spans approximately 18 hectares of green space.