European Science Park Group (ESPG AG), a real estate company specializing in science parks, announced its preliminary financial results for the 2025 financial year, reporting positive Group Earnings of EUR 0.5 million, a significant turnaround from the EUR -24.8 million loss in the previous year. This marks the first positive Group Earnings since 2022, following a break-even result in the first half of 2025.
Adjusted Gross Rental Income remained stable at EUR 15.9 million (2024: EUR 16.4 million), reflecting consistent operational performance despite a volatile market environment. The improvement in earnings was primarily driven by significantly reduced financing costs, which allowed the company to return to profitability. 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."
The company strengthened its balance sheet, with equity increasing to EUR 83.1 million as of December 31, 2025, up from EUR 79.5 million in the previous year, a rise of approximately 4.6%. The loan-to-value ratio (LTV) stood at 58.3%, compared to 57.3% in 2024, indicating a solid financial structure. The value of the real estate portfolio remained virtually unchanged at EUR 214.5 million, underscoring the stability of its science park-focused assets. This stability is attributed to the quality of locations within established science clusters and a tenant base concentrated in 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 restructuring expenses of approximately EUR 0.9 million. Comparative figures for 2024 are presented on a pro forma basis and include effects from restructuring measures. The audit certification by the external auditor is expected in the third quarter of 2026.
For the 2026 financial year, ESPG expects solid operational performance in a continued challenging market environment. 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 expects further lease agreements covering several thousand square meters in the near future, positioning itself to actively drive the next phase of portfolio development and value enhancement.
The 2024 financial report is available on the company's website at https://espg.space/investor_relations/financial-statements/.
