DGAP-News: Instone Real Estate Group AG
/ Key word(s): Preliminary Results/Forecast
2020 adjusted net income exceeds expectations; 2021 adjusted net income guidance confirmed despite lower expected 2021 adjusted revenues
- 2020 adjusted revenues of approx. EUR 480 million in line with guidance (EUR 470-500 million)
- 2020 adjusted earnings after tax amount to approx. EUR 40 million, substantially exceeding previously communicated expectations (EUR 30-35 million) as well as analysts' consensus estimates
- 2020 adjusted gross margin of approx. 30% (forecast > 28%) a major driver of positive earnings development
- Based on preliminary earnings, management expects a dividend proposal of EUR 0.26 per share
- 2021 lowered adjusted revenue guidance of EUR 820-900 million (previously EUR 0.9-1.0 billion) reflects increased Covid-19 related risks of delayed regulatory approvals
- 2021 adjusted earnings after tax guidance of EUR 90-95 million confirms previous communication and reflects increased margin expectations
Based on preliminary earnings and the planned payout ratio of 30.0%, the Management Board believes that it will be able to propose a dividend of EUR 0.26 per share for the previous financial year. Instone reiterates its target payout ratio of 30.0% of adjusted earnings after tax also for fiscal year 2021.
Instone continues to benefit from the ongoing positive demand environment for German residential properties in metropolitan regions. However, regulatory approvals for certain Instone projects are at risk to be delayed versus Instone's previous expectations due to the ongoing COVID-19 related lock-down. As a result the management board now expects 2021 adjusted revenues to amount to EUR 820-900 versus previous guidance of EUR 0.9-1.0 billion. Previous expectations with respect to 2021 earnings after tax, however, are confirmed at EUR 90-95 million as the positive pricing environment, a beneficial project sales mix and construction cost benefits across our projects are expected to continue to materialise throughout fiscal year 2021. In line with these expectations management guides for a 2021 adjusted gross margin of 26-27% and 2021 volume of concluded sales contracts of at least EUR 900 million.
"Instone's business model has proven itself to be very resilient, even throughout the COVID-19 crisis. Demand for our newly built properties has increased once again. Despite the current negative effects of the pandemic, we are optimistic about the future and expect a significant increase in revenue and earnings over the coming years", says Kruno Crepulja, Chairman of the Management Board/CEO of Instone Real Estate Group AG.
Instone will publish its final results and annual report for 2020 on 18 March 2021, as planned.
The definitions of the alternative key performance indicators mentioned in the statement can be found in the glossary on the company's homepage at: https://ir.en.instone.de/websites/instonereal/English/3600/glossar.html
|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:||1170560|
|End of News||DGAP News Service|