DGAP-News: Instone Real Estate Group AG / Key word(s): Real Estate/Annual Results
Instone Real Estate Group AG: results of the 2018 financial year
- Adjusted revenues of EUR 372.8 million
- Adjusted EBIT of EUR 49.6 million
- Adjusted gross profit margin of 28.6 %
- Project pipeline and project portfolio value significantly increased to an anticipated sales volume of around EUR 4.8 billion
- Considerable growth expected in 2019
Kruno Crepulja, CEO of Instone Real Estate, comments: "In the 2018 financial year, Instone perfectly met the considerable demand for housing in Germany with its products in residential construction. With a significant expansion of the project pipeline in German metropolitan areas and with the acquisition of nine projects, Instone has set a clear trend in Europe's most important housing market, creating a basis for further, sustainable growth."
Due to an acquired sales volume of around EUR 1.4 billion in the 2018 financial year and positive development in sales revenue from existing projects, the expected total sales value of the Instone project portfolio rose significantly from EUR 3.4 billion to around EUR 4.8 billion as of 31 December 2018.
From the regionally balanced project portfolio, all eight Instone locations in Germany made successful contributions to earnings in the 2018 financial year. Adjusted revenues totalled EUR 372.8 million and adjusted EBIT was EUR 49.6 million. The adjusted gross profit margin developed significantly better than expected and came to 28.6 % for the past financial year. The original outlook for this was 24 %. The volume of concluded sales contracts, which includes all sales-related transactions in the 2018 financial year, was approximately EUR 460 million.
Management board forecasts continuation of growth in 2019 financial year
The management board expects the positive development of the German housing market to continue in 2019 and beyond and underscores the outlook for the current 2019 financial year, which was published on 5 March 2019. In the 2019 financial year, Instone Real Estate expects significant growth in adjusted revenue to between EUR 500 million and EUR 550 million and a volume of concluded sales contracts ranging between EUR 450 million and EUR 550 million. The adjusted EBIT is expected to increase considerably to between EUR 85 million and EUR 100 million. With regard to the adjusted gross profit margin, the management board again anticipates a considerable figure of approximately 28 %.
Kruno Crepulja continues: "Our current revenue outlook is already met in full by Instone's existing projects through 2020. Even if this provides us with a comfortable starting point, it is also our declared aim in 2019 to expand the pipeline through additional attractive projects arising from property acquisitions in the German metropolitan regions. We therefore plan to create more value for our shareholders while simultaneously creating urgently needed housing in Germany."
About Instone Real Estate (IRE)
Instone Real Estate is one of Germany's leading residential developers and is listed in the Prime Standard on the Frankfurt Stock Exchange. The company develops attractive residential and multi-family buildings as well as publicly subsidized housing, designs modern urban quarters and refurbishes listed buildings for residential use. Buyers are mainly owner-occupiers, private investors and institutional investors. In 28 years, Instone Real Estate has successfully developed more than one million square metres. More than 311 employees work at eight locations nationwide. As of 31 December 2018, Instone Real Estate's project portfolio comprised 45 development projects with an expected total sales volume of roughly EUR 4.8 billion and more than 11,000 units.
|Instone Real Estate Group AG
|+49 201 453 550
|Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange
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|DGAP News Service