EQS-News: The Grounds significantly reduces consolidated loss in the first half of 2025, and confirms annual forecast

The Grounds significantly reduces consolidated loss in the first half of 2025, and confirms annual forecast

• Group EBIT improved to EUR -1.1 million (first half-year of 2024: EUR -4.3 million)
• Management Board confirms forecast consolidated sales revenues for 2025 between EUR 9 million and EUR 11 million – balanced consolidated EBIT expected

Berlin, 29 September 2025 –The Grounds Real Estate Development AG (The Grounds / ISIN: DE000A40KXL9) ended the first half of 2025 with a markedly reduced consolidated loss compared to the previous year. Sales revenues of EUR 2.9 million achieved in the reporting period were below the comparable figure for the first half of 2024, due mainly to the decline in sales volume in the property and portfolio development areas, and to individual privatisation. Nevertheless, sales revenues continued to account for the great majority of turnover income.

Consolidated EBIT in the first half-year improved to EUR -1.1 million (H1 2024: EUR -4.3 million) and consolidated profits after taxes to EUR -3.7 million (H1 2024: EUR -8.1 million), resulting in earnings per share of EUR -0.19 (H1 2024: EUR -0.30).

Compared to the balance sheet date of the previous financial year, the consolidated balance sheet total of The Grounds as on 30 June 2025 increased slightly to around EUR 169.9 million (31 December 2024: EUR 168.3 million). On the assets side, there were changes in non-current asset values due to the reclassification to inventories of properties in Schorfheide and Rauen; this occurred due to the division of these projects, and the start of sales of individual properties. Purchase contracts for the first units sold were already notarised during the reporting period, but economic transfer to buyers will not take place until the second half of the year. As a result of the reclassification, the value of properties held as financial investments decreased by EUR 5.7 million to EUR 29.5 million (31 December 2024: EUR 35.1 million).

Among current assets, inventories increased significantly to EUR 122.8 million (31 December 2024: EUR 92.6 million). As well as the reclassification of properties in Schorfheide und Rauen, this increase was due mainly to the purchase of a portfolio of detached and terraced houses in Werder (Havel) and Potsdam-Fahrland. Cash and cash equivalents, which totalled EUR 27.6 million at the end of the previous financial year, amounted to EUR 5.6 million at the end of the reporting period. The significant downturn is due essentially to the planned use of the proceeds from the capital increase carried out in December 2024, in particular to buy properties in Werder (Havel) and Potsdam-Fahrland and the purchased acquisition of further shares in The Grounds App2 GmbH, together with the reduction of other liabilities and trade accounts payable.

On the liabilities side, equity decreased from around EUR 50.7 million to EUR 44.1 million, due mainly to the negative consolidated result in the first half of 2025. In this respect, the equity ratio also decreased to 26.0% (31 December 2024: 30.1%).

Long-term debt, which stood at EUR 55.0 million at the end of the 2024 financial year, increased to EUR 68.6 million as on 30 June 2025. The main reason for this was the rise in long-term financial liabilities from EUR 13.8 million to EUR 25.3 million, reflecting mainly the inclusion of new financing for the newly-acquired properties in Werder (Havel) and Potsdam-Fahrland. In addition, the bonds position increased from EUR 34.2 million to EUR 36.8 million, which is explained mainly by the planned further accumulation of bullet bond interest.

Commenting on the development of The Grounds in the first half-year of 2025, Jacopo Mingazzini, CEO of The Grounds, says: “Private buyers of houses and owner-occupied apartments, a key target group for The Grounds, were often still cautious in the first six months of this year. This caused us to have a further decline in sales revenues compared to the corresponding period of the previous year. However, the sales that were realised, even though some will not impact on earnings until the second half of the year, as well as discussions held with potential buyers, demonstrate that our offerings are meeting with interest on the market, and that higher sales revenues can be expected again in the future. Another important milestone in the current financial year was the acquisition of the asset management for companies of the insolvent Ziegert Group on behalf of the H.I.G. Capital Group, which we were able to report after the relevant contracts had been concluded on 21 August 2025, and which was accompanied by a significant strengthening of our human resources.”

Andrew Wallis, CFO of The Grounds, adds: “The related considerable increase in our activities in the asset management area is associated with an enlargement of the yield basis of The Grounds Group. In this area, in the 2025 financial year, we foresee the achievement of net sales revenues exceeding EUR 3 million, together with a positive contribution of more than EUR 1 million to the EBIT. This also leads to additional sales potentials for the following financial years. Combined with the expectation that the coming year will also record positive earnings effects arising from our project developments in Magdeburg and Erkner, this allows us to look ahead with confidence to the current and future financial years.”

For the full financial year 2025, The Grounds continues to forecast consolidated revenue in the range of EUR 9 million to EUR 11 million, together with a balanced consolidated EBIT.

The half-yearly report for the first half of 2025 is now available to download at https://www.thegroundsag.com/de/investor-relations/financial-reports-and-presentations/half-year-reports/

Company contact:
The Grounds Real Estate Development AG
Jacopo Mingazzini (CEO), Andrew Wallis (CFO)
Zimmerstrasse 16, 10969 Berlin, Germany
Tel.: +49 (0) 30 2021 6866
Fax: +49 (0) 30 2021 6849
E-mail: info@tgd.ag
Web: www.thegroundsag.com

Investor relations:
UBJ. GmbH
Ingo Janssen, Managing Director
Haus der Wirtschaft, Kapstadtring 10
22297 Hamburg, Germany
Tel.: +49 (0) 40 6378 5410
E-mail: ir@ubj.de
Web: www.ubj.de

Press contact:
RUECKERCONSULT GmbH
Peter Dietze-Felberg
Wallstrasse 16
10179 Berlin, Germany
Tel.: +49 (0) 30 284 49 87 62
E-mail: dietze@rueckerconsult.de
Web: www.rueckerconsult.de

About The Grounds
The Grounds Real Estate Development AG and its subsidiaries, which currently employ around 80 staff, is a growing group of companies covering the entire real estate value-added chain in the residential property segment. The Grounds Group offers a range of services comprising the implementation of residential projects in German metropolitan regions, the management of a growing portfolio of its own fixed assets, and a wide range of services in the asset and property management field, including building management. The Grounds Real Estate Development AG is listed in the upper free market segment of Düsseldorf Stock Exchange’s primary market (ISIN: DE000A40KXL9) and has its headquarters in Berlin, together with an office in Leipzig.