European Science Park Group (ESPG AG), a real estate company specializing in science parks, reported positive Group Earnings of EUR 0.5 million for the 2025 financial year, marking a return to profitability for the first time since 2022. The company announced the results on March 31, 2026, highlighting a significant improvement from the previous year's loss of EUR -24.8 million.
Adjusted Gross Rental Income remained stable at EUR 15.9 million, compared to EUR 16.4 million in 2024, reflecting consistent operational performance. The turnaround was primarily driven by substantially lower financing costs, which allowed ESPG to achieve a break-even result in the first half of 2025 and a positive full-year result. Ralf Nocker, Member of the Management Board, attributed the improvement to consistent operational work and progress on the financing side, stating that the science park-focused portfolio has proven robust even under difficult market conditions.
ESPG's balance sheet strengthened during the year, with equity rising to EUR 83.1 million from EUR 79.5 million, an increase of approximately 4.6%. The loan-to-value ratio (LTV) stood at 58.3%, slightly up from 57.3% in the previous year, indicating a solid financial structure. The real estate portfolio value remained virtually unchanged at EUR 214.5 million, underscoring the stability of its science park assets despite a volatile market environment. This stability is attributed to the quality of locations within established science clusters and a tenant base focused on technology and research sectors.
The reported figures exclude 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 and include restructuring effects. All results are preliminary, with audit certification expected in the third quarter of 2026.
For 2026, ESPG expects solid operational performance in a continued challenging market. Tenant departures that occurred in the fourth quarter of 2025 will lead to increased investment requirements in 2026. However, the company has made good progress in pre-letting vacant space and has already concluded several new lease agreements with well-known companies such as Silicon Labs and Helmsauer, and has let additional space in Science Park Ulm. ESPG anticipates 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/.
