Instone Real Estate Group Hits Top Earnings Guidance, Forecasts Strong 2024 Profitability Amid Transition

• Adjusted revenues were stable at EUR 616.0 million in 2023, based on construction progress - Adjusted gross profit margin remained high at 25.1 percent - Sales were below previous year at EUR 211.4 million, but met forecast - Adjusted earnings after tax were stable at EUR 48.2 million - Operating cash flow was EUR 107.7 million, strengthening balance sheet - Dividend of EUR 0.33 per share proposed for Annual General Meeting
• Instone Group performed well in 2023 despite challenging market environment - Demand for new residential buildings fell in 2023 due to higher interest rates and uncertainty - Extensive project pipeline secures business potential for next few years - Outlook for 2024 anticipates continued solid profitability and increased sales volume - Company aims to capitalize on strength to create basis for future growth - CEO emphasizes maintaining leading profitability and strengthening balance sheet in difficult environment
• Adjusted revenues in 2023 were almost at previous year's level - Adjusted gross profit margin remained attractive at 25.1 percent - Measures to increase efficiency led to reduction in platform costs - Retail sales showed noticeable upturn in final quarter - Strong balance sheet with low loan-to-cost ratio of 15.1 percent - High operating cash flow of EUR 107.7 million contributed to balance sheet improvement
• Instone Group project portfolio had expected sales value of approximately EUR 7.0 billion - Part of portfolio under construction totals EUR 2.9 billion, with 90 percent already sold - Company contributes to reducing shortage of affordable housing in Germany - Outlook for 2024 anticipates increased sales volume and profitability - Management expects demand and sales volumes to pick up in second half of 2024 - Company aims to take advantage of opportunities for project acquisitions in 2024
• Lower demand in 2022 and 2023 will impact revenues in 2024 - Management anticipates increased demand and sales volumes in 2024 - Expects adjusted revenues of EUR 500 to 600 million, adjusted earnings after tax of EUR 30 to 40 million, and sales of more than EUR 300 million - Company aims to capitalize on opportunities for project acquisitions in 2024 - Management considers 2024 to be a year of transition with solid profitability
• Instone Group is one of the leading residential developers in Germany - Listed on the Prime Standard of the German stock market - Develops sustainable urban residential quarters throughout Germany - Project portfolio includes 45 development projects with anticipated sales volume of approximately EUR 7.0 billion - Company employs 441 employees at nine locations in Germany - Strong balance sheet and extensive project pipeline provide basis for future growth and cash flows.

The next important date, Publication of Business Report 2023, at Instone Real Estate Group is on 19.03.2024.

The price of Instone Real Estate Group at the time of the news was 7,9850EUR and was down -0,06 % compared with the previous day.
16 minutes after the article was published, the price was 7,9800EUR this corresponds to a minus of -0,06 % since publication.

Instone Real Estate Group

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ISIN:DE000A2NBX80WKN:A2NBX8

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