European Science Park Group (ESPG AG), a real estate company specializing in science parks, achieved a positive Group Earnings in 2025, returning to profitability for the first time since 2022. The company reported Group Earnings of EUR 0.5 million, a significant improvement from EUR -24.8 million in the previous year, driven by reduced financing costs and stable operational performance. Gross Rental Income remained stable at EUR 15.9 million, reflecting the resilience of its science park portfolio in a challenging market environment.
Ralf Nocker, Member of the Management Board of ESPG AG, stated: 'After two challenging years, we have achieved a financial turnaround. Both the significant relief on the interest side and the stable operational performance have contributed to ESPG not only reaching break-even in the first half of 2025 but also reporting a balanced Group result for the full year 2025.' He added that the company expects higher vacancy levels in early 2026 due to tenant departures in Q4 2025, but sees opportunities for value enhancement.
The company's balance sheet strengthened, with equity rising to EUR 83.1 million from EUR 79.5 million, an increase of 4.6%. The loan-to-value ratio (LTV) stood at 58.3%, compared to 57.3% in the previous year. The real estate portfolio value remained virtually unchanged at EUR 214.5 million, underlining its stability. This stability is attributed to the quality of locations within established science clusters and a focus on technology and research-oriented tenants.
Reported figures for 2025 are adjusted for significant one-off effects, including a EUR 2.8 million penalty payment from a tenant and restructuring expenses of approximately EUR 0.9 million. Comparative 2024 figures are presented on a pro forma basis. All figures are preliminary, with audit certification expected in Q3 2026.
For 2026, ESPG expects solid operational performance despite a challenging market. Tenant departures in Q4 2025 will lead to increased investment requirements, but progress has been made in pre-letting vacant space. The company has already concluded new lease agreements with well-known companies such as Silicon Labs and Helmsauer and has let additional space in Science Park Ulm. ESPG expects further lease agreements covering several thousand square meters in the near future.
The 2024 financial report is available on the company's website: https://espg.space/investor_relations/financial-statements/.
