Instone Real Estate Group SE
- WKN: A2NBX8
- ISIN: DE000A2NBX80
- Land: Deutschland
Nachricht vom 26.08.2021 | 07:30
Instone Real Estate Group AG: Instone continues strong revenues and earnings growth - financial targets for 2021 reiterated
DGAP-News: Instone Real Estate Group AG
/ Key word(s): Half Year Report
Instone continues strong revenues and earnings growth - financial targets for 2021 reiterated
- Adjusted revenues in the first half of 2021 increased significantly by +45.0 percent year-on-year to EUR 260.5 million; pending institutional deals promise accelerating revenue growth in H2
- Adjusted earnings after tax rose overproportionately to EUR 23.4 million (+70.8 percent)
- Sustained attractive adjusted gross margin of 29.4 percent reflects sound demand environment and construction cost management
- New project acquisitions with gross development value (GDV) of c. EUR 600 million approved year-to-date; exclusive pipeline with GDV of c. EUR 1.0 billion under negotiation
- 2021 guidance reiterated: adjusted revenues of EUR 820 to 900 million; adjusted earnings after tax of EUR 90 to 95 million, volume of customer sales contracts in excess of 900m
Instone continues to deliver on its growth strategy
The adjusted gross margin of 29.4 percent (H1-2020: 32.2 percent) remains elevated and above the internal 25 percent margin target level. Instone's margin achievement also compares favourably with typical industry margins. Instone continues to benefit from the positive demand and price trends for German residential properties in metropolitan areas. Rising material costs due to the jump in certain commodity prices have been compensated by house price inflation and have therefore not had any noticeable impact on the business performance to date. Supply chain bottlenecks for certain building products remain a management focus. While Instone's long-term partnerships with suppliers as well as a procurement strategy of awarding orders at an early stage is clearly paying off, Instone is experiencing minor delays in construction progress for selected projects and continues to focus management attention to minimise the impact. The terms for some 85 percent of the construction work expected in 2021 have already been logged-in.
The adjusted EBIT for the H1 reporting period amounted to EUR 41.1 million (H1-2020: EUR 28.2 million). This corresponds to an adjusted EBIT margin of 15.8 percent (H1-2020: 15.7 percent), despite continued investments into the platform for future growth.
Lower financial debt compared to the previous year, due to the execution of a capital increase in Q3-2020 and the strong H1-2021 cash generation as well as improved financing terms resulted in a decrease in adjusted net financial expenses (EUR -7.6 million in H1-2021 vs. EUR -8.9 million in H1-2020).
As a result, adjusted earnings after tax (EAT) increased by 70.8 percent to EUR 23.4 million (H1-2020: EUR 13.7 million) despite a slightly higher tax rate.
"With the development in the first half of the year, we see ourselves fully on track to achieving our ambitious growth targets. We expect further growth acceleration in the second half. With our highly attractive core business as well as our innovative affordable living product, we have good reasons to look to the future with optimism", says Kruno Crepulja, CEO of Instone Real Estate Group AG.
Strong balance sheet remains important pillar for future growth
Progress on acquisitions; Promising deal pipeline for future growth
"We are pleased with the growth and margins achieved over the 6 months period to June 30th and the material step up in revenues and profitability versus the prior year period. With strong demand continuing from both retail as well as institutional customers we confirm our full-year targets and reiterate our mid-term outlook with full confidence", says Foruhar Madjlessi, CFO of Instone Real Estate Group AG.
Confirmation of earnings guidance for 2021
The definitions of the 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:||1228994|
|End of News||DGAP News Service|
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