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The Grounds Real Estate Development AG Concludes 2023 with Lower Revenue and Losses Amid Market Challenges

The Grounds Real Estate Development AG reported a significant decline in consolidated sales revenues and earnings for the year 2023, with revenues falling to EUR 23.9 million from EUR 36.8 million in the previous year. This reflects a 35% decrease largely due to the cancellation of a major project sale. EBIT also fell sharply to EUR -4.8 million, compared to EUR 3.4 million in 2022, impacted by the overall slowdown in Germany's property market where hesitance among buyers led to lower transaction volumes.

Total assets rose slightly by approximately EUR 9 million to reach EUR 147.8 million, despite the challenging environment. The increase was mainly attributed to an expansion in inventory as development projects progressed. However, EBIT after taxes sank to EUR -7.6 million, down from a positive EUR 1.3 million the previous year, with earnings per share dropping to EUR -0.39.

Looking forward, The Grounds maintains a positive outlook for 2024, forecasting better financial performance with targeted sales revenues between EUR 48 million and EUR 52 million and a balanced EBIT. This optimism is backed by planned sales in ongoing residential projects and strategic financing secured, including a constructive partnership with H.I.G. Realty potentially promising greater stability and growth.

R. E.

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