DGAP-News: Instone Real Estate Group AG
/ Key word(s): Quarterly / Interim Statement
Instone Real Estate: Final results for Q1 2020 confirm positive start to the year
- Adjusted revenues of EUR 99.7 million for the first quarter considerably above the previous year's level (+18.4%)
- Significant increase in adjusted EBIT (EUR 18 million, +14.6%) and adjusted net income (EUR 8.7 million, +13.0%)
- Adjusted gross profit margin of 29.8% remains at an attractive level
- Starting in the second quarter the COVID-19 pandemic has a negative impact mainly on the speed of sales. The Management Board still expects a clearly positive operating cash flow for the full year, however
- First-time of dividend payment for the full year 2020 still planned (target distribution ratio: 30% of adjusted net income)
- Management Board confirms earnings outlook of at least EUR 90.0 million (adjusted net income) for 2021 and mid-term growth targets
Good start to the year, as planned
Platform costs in the first quarter were nearly at previous year's level, thus the adjusted operating result (EBIT) rose by 14.6% to EUR 18.0 million (previous year EUR 15.7 million). As expected, the purchase of land particularly in the second half of 2019, thus investments in future growth, resulted in a significant increase in financing costs to EUR 4.7 million (previous year EUR 2.5 million).
COVID-19: restraint in demand, construction activity proceeds according to plan
Management Board confirms targets for the 2021 and 2022 financial years and its intention for a first-time dividend payment for the 2020 financial year
Given the existing cash position, Instone is in an outstanding position to take advantage of additional growth opportunities.
Furthermore, the Management Board still intends to distribute a share of around 30% of its adjusted net income as a dividend to shareholders, starting in 2021 for the 2020 financial year.
"Instone is financially very well positioned. Despite the distortions related to COVID-19, we also expect to continue generating a clearly positive operating cash flow for the current financial year and maintain our intention to pay a dividend, for the first time, for the 2020 financial year," says Foruhar Madjlessi, CFO of Instone Real Estate Group AG.
The Quarterly Group Statement Q1 2019 is available on the company website for download at the following address: https://ir.de.instone.de/websites/instonereal/English/3200/financial-reports.html
* The definitions of the alternative performance indicators mentioned in the press release can be found in the glossary on the company's website at https://ir.en.instone.de/websites/instonereal/English/3600/glossary.html
About Instone Real Estate (IRE)
Instone Real Estate is one of Germany's leading residential developers and is listed in the SDAX. The company develops attractive multi-family and residential buildings as well as publicly subsidised housing, designs modern urban quarters and refurbishes listed buildings for residential use. Buyers are mainly owner-occupiers, private investors with an intention to let, and institutional investors. In 29 years, Instone Real Estate has successfully developed more than one million square metres. In total, 380 employees work at nine locations nationwide. As of 31 March 2020, the company's project portfolio comprised 53 development projects with an expected total sales volume of roughly EUR 5.75 billion and 12,952 units.
|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:||1057135|
|End of News||DGAP News Service|