News

Financial Forecast for 2022 suspended due to significantly increased short-term uncertainty and limited visibility; Business development as expected in Q1 – 2022

Essen, 11 May 2022 –

The Management Board of Instone Real Estate Group SE ("Instone") is suspending its previous forecast for the financial year 2022 in light of the significantly increased uncertainties resulting from Russia’s war of aggression against Ukraine and the consequent limited visibility on business development.

Although the beginning of the year saw a phase of easing on supply markets, geopolitical tensions have led to a noticeable strain on international supply chains. Supply bottlenecks for important construction materials such as cement, steel, wood products and oil based building materials have intensified considerably.

As a result of these developments, the Management Board expects delays in construction progress at Instone’s construction sites. Moreover, the current continued increase in energy and material costs will lead to further increases in construction costs. Due to the high share of already awarded construction contracts and the conservative cost budgeting for current projects, the Management Board still expects a comparatively robust development with regard to the communicated margin targets.

At the same time, however, Management believes that increased financing costs might affect the affordability of the Instone product for certain buyer groups and this may in turn have an adverse impact on sales speed in the private customer business.

Consequently, the Management Board currently sees considerable short-term risks, particularly for the speed of construction and sales and thus in revenue recognition. Hence, Management assumes that revenues, in particular, will fall short of expectations.

In light of the limited visibility associated with numerous factors of uncertainty, especially in regard to revenue recognition, the Management Board cannot provide a concrete financial forecast for the financial year 2022.

On the other hand, business development in the first quarter of 2022 progressed as planned. Since the beginning of 2022, Instone has achieved adjusted revenues of EUR 118.5 million, an adjusted gross profit margin of 29.7 percent and adjusted earnings after tax (EAT) of EUR 9.3 million.

Investor Relations
Instone Real Estate
Burkhard Sawazki
Grugaplatz 2-4
D-45131 Essen
Tel.: +49 (0)201 45355-137
E-Mail: burkhard.sawazki@instone.de
 

Forward-Looking Statements
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