Instone Real Estate Group Reports Stable Start to 2024 with Signs of Increasing Demand

Instone Real Estate Group SE announced a strong beginning to 2024, maintaining stability in adjusted revenues and showing notable improvements in efficiency. In Q1-2024, the adjusted revenues reached EUR 119.5 million, slightly down from Q1-2023's EUR 123.5 million, largely due to construction progress as planned on sold units. The company reported a stable adjusted gross profit margin of 27.4 percent, reflecting consistent cost management and project quality.

The sales increased significantly to EUR 88.0 million from EUR 52.7 million in the previous year, indicating a recovery in demand. This increase included a substantial contribution from institutional sales. Earnings after tax also saw a small rise to EUR 9.6 million, up from EUR 8.5 million in the previous year, benefiting from a lower tax rate and efficiency improvements.

Throughout the quarter, Instone Group sustained its strong balance sheet, which has been pivotal in its competitive positioning amidst a challenging market. The loan-to-cost ratio stood at 17.3 percent. With the bulk of its project portfolio pre-sold, the company continues to secure predictable future cash flows.

Looking forward to 2024, Instone Group reiterates its financial targets, expecting adjusted revenues between EUR 500 to 600 million and adjusted earnings after tax ranging from EUR 30 to 40 million, supported by sales surpassing EUR 300 million.

The company also resumed acquisitions, with initial transactions currently in advanced stages, signaling a strategic shift back to growth post-2022. Projected sales volume of the current portfolio totals approximately EUR 6.9 billion, maintaining substantial business prospects for the coming years.