DGAP-News

Instone Real Estate Group AG: Instone Real Estate performs as planned in Q3 2020; forecast for 2020 and 2021 reiterated

DGAP-News: Instone Real Estate Group AG / Key word(s): 9 Month figures/Quarterly / Interim Statement Instone Real Estate Group AG: Instone Real Estate performs as planned in Q3 2020; forecast for 2020 and 2021 reiterated 26.11.2020 / 07:30 The issuer is solely responsible for the content of this announcement. Instone Real Estate performs as planned in Q3 2020; forecast for 2020 and 2021 reiterated

- Adjusted revenues for the nine months 2020 down slightly on the previous year (-3.7%) at EUR 291.3 million despite the negative effects of COVID-19

- High gross margin of 32.3% underscores quality of project portfolio and first-class execution

- Adjusted EBIT fell to EUR 50.0 million (-11.8%) and adjusted EBT to EUR 34.4 million (-25.4%) due to negative operating leverage as well as investments in future growth

- Approved five new project acquisitions with Gross Development Value (GDV) of around EUR 600 million^[1] since end of June

- Strong balance sheet leaves Instone ideally positioned to exploit further attractive growth opportunities

- Earnings forecasts for 2020 and 2021 confirmed: adjusted earnings after tax for 2020: EUR 30-35 million; 2021: at least EUR 90 million

- Intention to distribute inaugural dividend for 2020 financial year confirmed (target distribution ratio: 30% of adjusted earnings after tax)

Essen, 26 November 2020:
Following a strong start to the financial year, Instone Real Estate Group AG ("Instone") Q2 results had been affected by the slowdown in economic activity that was triggered by the COVID-19 pandemic. The temporary drop in client demand and in particular the postponed sales launches of new projects have affected performance across 2020 as a whole. However, by the end of Q2 sales ratios indicated a normalisation of sales activities among private clients, which also continued in the further course of the year. Furthermore, Instone is also observing noticeable recovery among institutional investors, with interest comparable to that before the outbreak of the COVID-19 pandemic. As such, the company expects to sign further sales with institutional investors in the final quarter.