EQS-News

Instone Group achieves upper end of earnings guidance; outlook for 2024 assumes continued solid profitability in a year of transition

EQS-News: Instone Real Estate Group SE / Key word(s): Annual Results Instone Group achieves upper end of earnings guidance; outlook for 2024 assumes continued solid profitability in a year of transition 19.03.2024 / 07:30 CET/CEST The issuer is solely responsible for the content of this announcement. Instone Group achieves upper end of earnings guidance; outlook for 2024 assumes continued solid profitability in a year of transition

• Adjusted revenues were nearly stable at EUR 616.0 million in 2023 (2022: EUR 621.0 million), mainly based on construction of sold units progressing according to plan
• A continued high adjusted gross profit margin of 25.1 percent (2022: 25.3 percent) underscores the quality of Instone Group projects and cost discipline
• Sales of EUR 211.4 million (2022: EUR 292.1 million) below previous year due to the market situation, but with positive momentum in the fourth quarter and clear achievement of the forecast of over EUR 150 million
• At EUR 48.2 million, adjusted earnings after tax were also pretty stable compared to the previous year (2022: EUR 50.0 million) and at the upper end of the guidance range (EUR 40–50 million)
• A high operating cash flow of EUR 107.7 million helped to further strengthen the balance sheet (loan-to-cost: 15.1 percent)
• The Management Board and Supervisory Board propose the payment of a dividend of  EUR 0.33 per share to the  Annual General Meeting
• Outlook for 2024: adjusted revenues of EUR 500 to 600 million, adjusted earnings after tax of EUR 30 to 40 million, sales of more than EUR 300 million

Essen, Germany, 19 March 2024: Instone Real Estate Group SE (“Instone Group”) performed well in 2023 in a very challenging sector and macroeconomic environment. Overall, the result underlines the high resilience of the Instone Group. Based on a high number of projects already sold, adjusted revenues on the basis of the planned construction progress was around the same level as in the previous year. With a continuing high adjusted gross margin, the earnings contribution from a successful joint venture project in Berlin and slightly improved net interest result, the company achieved almost stable earnings at the upper end of the guidance range.