EQS-News

Instone Real Estate Group SE achieves good result in a difficult environment with a largely stable earnings outlook for 2023 - Seite 3

Against the backdrop of the large pre-sold volume, Instone again expects a significantly positive operating cash flow for 2023 and therefore a further strengthening of the financial profile.

"Even in a difficult environment for our industry, we can maintain attractive profitability and a strong balance sheet. This is also the focus for 2023. At the same time, we are ready to take decisive advantage of opportunities for investment as soon as the market stabilises", says Kruno Crepulja, CEO of Instone Real Estate Group SE.

Extensive project pipeline allows opportunistic investment strategy

The expected sales value of the Instone project portfolio (gross development value, GDV) as of the reporting date was approximately EUR 7.7 billion (31 December 2021: EUR 7.5 billion). The current size of the pipeline therefore allows for an opportunistic investment strategy and temporary restraint in land purchases. The part of the portfolio that is in the pre or already in the construction phase totals EUR 3.3 billion, of which EUR 3.0 billion, or around 89.0 percent, has already been sold. Overall, this provides a high degree of visibility with regard to the expected revenues and cash flows in the future and therefore offers strong risk protection.

High cash return to shareholders, including share buybacks

The Management Board and the Supervisory Board propose a dividend of EUR 0.35 per share to the Annual General Meeting. With a planned pay-out ratio of 30 percent of the adjusted net earnings after tax, the completed buyback of around 7.87 percent of the share capital has an enhancing effect on the dividend per share. With the planned dividend for 2022, the distribution for 2021 and taking into account the completed share buyback programme, a total pay-out exceeding EUR 80 million is therefore planned for a period of 15 months between March 2022 and June 2023.

Further expansion of ESG reporting confirms high focus on sustainability

Instone Real Estate is pursuing the strategic goal of reviewing all new projects in future with regard to the current EU Taxonomy Regulation criteria. In the 2022 financial year, a high rate of taxonomy-compliant revenues of 86.7 percent was achieved. Similarly, 94.2 percent of all 191 revenue-related individual buildings achieved taxonomy compliance, providing impressive evidence of Instone's sustainability focus and its leading position.