EQS-News

Instone Real Estate Group SE achieves good result in a difficult environment with a largely stable earnings outlook for 2023

EQS-News: Instone Real Estate Group SE / Key word(s): Annual Report Instone Real Estate Group SE achieves good result in a difficult environment with a largely stable earnings outlook for 2023 16.03.2023 / 07:30 CET/CEST The issuer is solely responsible for the content of this announcement. Instone achieves good result in a difficult environment with a largely stable earnings outlook for 2023

• Adjusted revenues of EUR 621.0 million (2021: EUR 783.6 million) in line with adjusted targets; the impact of investor reluctance is clearly felt
• A continued high adjusted gross profit margin of 25.3 percent underscores the quality of Instone projects
• Earnings after tax of EUR 50.0 million (2021: EUR 96.9 million) reaches the top end of the adjusted forecast, also as a result of successful cost control
• Positive operating cash flow after investments of EUR 70.2 million secures a strong balance sheet despite high cash distributions including share buybacks
• The Management Board and Supervisory Board propose the payment of a dividend of EUR 0.35 per share to the AGM
• Forecast for 2023 assumes largely stable results: revenues (adjusted) of EUR 600 to 700 million, earnings after tax (adjusted) of EUR 40 to 50 million

Essen, Germany, 16 March 2023: Instone Real Estate Group SE ("Instone") performed well despite the significantly more difficult general conditions in the sector and macroeconomic environment, and achieved continued decent profitability with a significantly positive cash flow. Overall, the business developed in line with expectations and reached the upper end of the targeted earnings range.

Adjusted revenues in 2022 were, as planned, below the level of the previous year. The sharp rise in interest rates has affected the affordability of real estate purchases and triggered increased short-term uncertainty among private and institutional investors. This had a negative impact on sales speed and therefore on revenue recognition. In addition, the shortage of materials continued to have negative effects on the speed of construction.