PANDION AG has announced that it expects a significantly negative preliminary result before income taxes for the 2025 financial year. The forecast amounts to approximately -69 million EUR. This assessment represents a significant deviation from the projection published on 23 December 2025, which still anticipated a slightly positive result in the single-digit millions of EUR. The revision of the forecast reflects the current market challenges and their impact on the company's property valuations.
The primary cause for the now expected negative result is likely to be necessary impairment losses on selected commercial real estate properties. These impairment losses are directly related to the persistently difficult market situation, which has necessitated significant adjustments to valuation parameters. In particular, changes in capital costs and subdued dynamics in the transaction markets are having a lasting impact on the value of commercial properties.
Factors for the earnings revision
The commercial real estate segment continues to be characterised by uncertainties. Increased financing costs are burdening projects and investments. At the same time, a certain reluctance among buyers and investors, as well as longer sales cycles, are leading to delays in the transaction markets, which affects liquidity and asset valuations. These external factors necessitate a more conservative valuation of assets.
- —Changed valuation parameters for properties
- —Increased financing costs in the real estate sector
- —Delays and reduced activity in the transaction markets
The final amount of the impairment losses still requires confirmation as part of the annual financial statements. PANDION AG plans to publish the audited consolidated financial statements and the annual report for 2025 presumably at the end of July 2026. At that time, more detailed information on the final financial figures will be provided. The current announcement is based on preliminary figures that have not yet been finally audited, which means deviations in the final values are possible.
This development illustrates the continuing tense situation in the German real estate market, particularly in the commercial property segment. The necessity of comprehensive impairment losses for a prominent player such as PANDION AG signals that market adjustments are not yet complete and further corrections to valuations of development projects and existing properties cannot be ruled out.
