EQS-News

Instone continues its very solid performance in a still challenging environment; outlook for 2023 confirmed - Seite 2

Demand for new build properties remains significantly below previous years. The negative effects of higher interest rates and the increased uncertainty of private and institutional investors remained clearly noticeable in the first three quarters. Nevertheless, sales contracts amounting to EUR 91.3 million, including one institutional deal, were concluded in the first three quarters (9M 2022: EUR 250.2 million). A moderate demand recovery in unit sales to private investors can be observed in recent months. Single unit sales started to pick up in the first weeks of Q4, supported by new sales starts.

Instone maintains leading profitability in a difficult market environment

Adjusted revenues in the first three quarters of 2023 amounted to EUR 433.3 million, almost at the previous year’s level (9M 2022: EUR 441.9 million). Instone continues to benefit from the high proportion of projects that have already been pre-sold with a volume of around EUR 2.8 billion. Of the projects under construction, worth around EUR 3.1 billion, around 90 percent had been sold at the end of Q3, thus largely securing the expected cash flows from these projects.

The adjusted gross margin was 25.5 percent in the first nine months of 2023 (9M 2022: 25.8 percent), still an attractive and industry-leading level, with stabilising construction costs. The company benefits from fixed-price contracts and economies of scale in procurement, the structural advantages of a high level of vertical integration and many years of expertise.

On the cost side, we began to see the effects of the measures introduced to increase efficiency. Overall, platform and staff costs were lower than in the previous year.

In addition, the planned progress of the joint project Friedenauer Höhe, Berlin, has led to an increase in the at-equity result and also an increase in the operating result compared to the previous year. The adjusted operating profit (adjusted EBIT) increased to EUR 65.8 million (9M 2022: EUR 60.9 million). With slightly higher interest expenses and a slightly lower tax rate, adjusted earnings after tax (EAT) also increased noticeably to EUR 37.1 million (9M 2022: EUR 34.0 million).