The Grounds Narrows Losses in First Half of 2025, Reaffirms Full-Year Outlook

The Grounds Real Estate Development AG reported a significant reduction in its consolidated loss for the first six months of 2025, even as revenues fell compared with the previous year. The company reaffirmed its guidance for the full year, projecting revenues between €9 million and €11 million and a balanced operating result.

Revenue for the first half of the year stood at €2.9 million, down from the same period in 2024, reflecting weaker activity in property and portfolio sales as well as cautious demand from private buyers. Nevertheless, the company’s operating performance improved, with EBIT narrowing to –€1.1 million from –€4.3 million a year earlier. Net loss after tax decreased to –€3.7 million, compared with –€8.1 million in the first half of 2024, with earnings per share improving to –€0.19 from –€0.30.

Total assets rose slightly to €169.9 million at mid-year, up from €168.3 million at the end of 2024. A reclassification of projects in Schorfheide and Rauen boosted inventories to €122.8 million, while investment property values declined to €29.5 million. The company also acquired residential portfolios in Werder (Havel) and Potsdam-Fahrland, contributing to higher inventories. Cash reserves fell to €5.6 million from €27.6 million at the end of last year, reflecting property acquisitions, a further stake in The Grounds App2 GmbH, and debt repayments.

On the liabilities side, equity decreased to €44.1 million, reducing the equity ratio to 26 percent from 30 percent at the end of 2024. Long-term debt rose to €68.6 million, driven by new financing for recent acquisitions and an increase in bond liabilities.

Chief Executive Officer Jacopo Mingazzini said the company continued to face hesitant demand from private buyers during the first half of the year, but noted that completed sales and discussions with prospective clients indicated a recovery in the second half. He also highlighted the company’s takeover of asset management activities for parts of the insolvent Ziegert Group on behalf of H.I.G. Capital, describing it as a milestone that strengthened The Grounds’ workforce and broadened its scope.

Chief Financial Officer Andrew Wallis said the expansion into asset management was expected to generate more than €3 million in sales revenue and contribute over €1 million to EBIT this year, adding that project developments in Magdeburg and Erkner would further support earnings in 2026.

Despite ongoing pressure in the housing market, The Grounds said it remains confident in its outlook, with management reaffirming its forecast of €9–11 million in consolidated revenues for 2025 and a balanced EBIT at year’s end.