ESPG Returns to Profitability in 2025 with EUR 0.5 Million Group Earnings

European Science Park Group (ESPG AG) reported positive Group Earnings of EUR 0.5 million for the 2025 financial year, marking the company's return to profitability for the first time since 2022. The real estate company specializing in science parks achieved this turnaround despite persistent market challenges, with adjusted Gross Rental Income remaining stable at EUR 15.9 million compared to EUR 16.4 million in the previous year.

Ralf Nocker, Member of the Management Board of ESPG AG, explained that both significant relief on the interest side and stable operational performance contributed to the company reaching break-even in the first half of 2025 and reporting a balanced Group result for the full year. This represents a substantial improvement from the EUR -24.8 million Group Earnings reported in 2024. The company's financial statements are prepared under IFRS standards, and the 2024 financial report is available on the company's website at https://espg.space/investor_relations/financial-statements/.

The preliminary balance sheet for 2025 shows strengthened financial metrics, with equity increasing to EUR 83.1 million from EUR 79.5 million in the previous year, representing approximately 4.6% growth. The loan-to-value ratio stood at 58.3%, compared to 57.3% in 2024, reflecting an overall solid financial structure. The value of the real estate portfolio remained virtually unchanged at EUR 214.5 million, demonstrating stability despite volatile market conditions.

This portfolio stability is attributed to the quality of locations within established science clusters and the focus on tenants from technology and research-oriented sectors. The reported figures exclude significant one-off effects, including a one-off payment from a tenant amounting to EUR 2.8 million and restructuring expenses of approximately EUR 0.9 million. All figures represent preliminary financial results pending audit certification by the external auditor expected in the third quarter of 2026.

For the 2026 financial year, ESPG expects solid operational performance in a continued challenging market environment, though tenant departures in the fourth quarter of 2025 will lead to increased investment requirements. The company has already made progress in pre-letting vacant space and has concluded several new lease agreements with companies including Silicon Labs and Helmsauer, with additional space let in Science Park Ulm. ESPG anticipates further lease agreements covering several thousand square meters in the near future as it positions itself to actively drive the next phase of portfolio development and value enhancement.