DGAP-News: Instone Real Estate Group AG
/ Key word(s): Forecast
Instone suspends financial year 2020 earnings guidance, positive medium-term outlook confirmed, preliminary Q1 results as planned
Instone Real Estate Group AG's ("Instone") Management Board suspends its forecast for financial year 2020 due to the significant uncertainties associated with the COVID-19 pandemic. While construction activity at Instone is progressing as planned, Instone is currently observing a slow down in customer sales contracts associated with the COVID-19 pandemic.
Based on the preliminary (unaudited) figures for Q1 2020, Instone has had a good start into the 2020 financial year in line with its projections. Accordingly, adjusted group revenues* of EUR 99.7m (Q1 2019: EUR 84.2m) and adjusted group EBIT* of EUR 18.0m (Q1 2020: EUR 15.7m) are both exceeding previous year's level. Instone's adjusted gross profit margin for the past quarter amounts to 29.8% clearly underscoring the quality of Instone's projects and the company's execution capabilities.
The Management Board confirms the mid-term 2021 and 2002 targets for adjusted revenues (2021: EUR 900.0m to EUR 1.0bn; 2022: > EUR 1.0bn) on the basis of an expected gradual improvement of the economic environment.
For 2021, Instone also expects an adjusted net income* at group level of at least EUR 90.0m. The Management Board's intention to distribute a share of around 30% of adjusted net income as a dividend to shareholders, starting in 2021 for fiscal year 2020, remains unchanged.
With cash on hand and unused corporate level loan facilities of around EUR 250m as well as available unused lines for project level financings of approximately EUR 240m (as of 31 March) Instone remains well positioned to benefit from future market opportunities.
"The structural growth drivers of our business model and the attractiveness of German residential as an asset class remain fully intact, despite current temporary weakness. Instone is ideally positioned and we are confident that the current market environment will offer additional attractive growth opportunities for our company", says Instone CEO Kruno Crepulja.
The quarterly statement for Q1 2020 will be published as scheduled on May 28, 2020.
* The definitions of the alternative performance measures mentioned in the notification can be found in the glossary on the company's website under http://ir.de.instone.de/websites/instonereal/English/3400/glossary.html
Instone Real Estate Group AG
|Company:||Instone Real Estate Group AG|
|Phone:||+49 201 453 550|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1039339|
|End of News||DGAP News Service|