European Science Park Group (ESPG AG) reported a positive Group Earnings of EUR 0.5 million for the 2025 financial year, marking its first annual profit since 2022. The company's adjusted Gross Rental Income remained stable at EUR 15.9 million, demonstrating operational consistency despite a challenging market environment. Ralf Nocker, Member of the Management Board of ESPG AG, stated that the financial turnaround resulted from both significant interest cost relief and stable operational performance. "We have proven our strength in a demanding environment and demonstrated that our science park-focused portfolio is robust and high-performing even under difficult market conditions," Nocker explained. The company achieved break-even results in the first half of 2025 before reporting the full-year profit.
The preliminary balance sheet shows strengthened financial metrics, with equity increasing to EUR 83.1 million from EUR 79.5 million in the previous year, representing a 4.6% improvement. The loan-to-value ratio stood at 58.3%, reflecting a solid financial structure. The value of the real estate portfolio remained virtually unchanged at EUR 214.5 million, underlining its stability in value despite market volatility. This 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 EUR 2.8 million penalty payment from a tenant and approximately EUR 0.9 million in restructuring expenses. All figures represent preliminary financial results pending audit certification expected in the third quarter of 2026.
For the 2026 financial year, ESPG expects solid operational performance despite anticipating higher vacancy levels in the first months due to tenant departures that occurred in the fourth quarter of 2025. These departures create increased investment requirements but also opportunities for targeted value enhancement within the science park portfolio. The company has already made progress in pre-letting vacant space and concluded several new lease agreements with companies including Silicon Labs and Helmsauer, while letting additional space in Science Park Ulm. ESPG considers itself well positioned to actively drive the next phase of portfolio development and expects further lease agreements covering several thousand square meters in the near future. The company's 2024 financial report is available on its website at https://espg.space/investor_relations/financial-statements/.
