Essen, 28 May 2019: Listed residential developer Instone Real Estate Group AG has begun the 2019 financial year successfully and according to plan. The results published today for the first quarter of 2019 show very positive development for all key performance indicators of the company and meet the expectations of the management board.
Kruno Crepulja, CEO of Instone Real Estate, comments: "Instone's sustainable course of growth continues in 2019. For us, the first quarter's highly favourable results are further confirmation of the strategy we have embarked upon."
In the reporting period Instone showed marked growth in adjusted revenues, which at EUR 84.2 million increased by 59.8% compared to the same period last year (Q1 2018: EUR 52.7 Mio million). A significant rise in the number of concluded sales contracts and substantial improvement in the progress of construction in the first quarter of 2019 contributed to this growth. The volume of concluded sales in the first three months of 2019 totaled EUR 62.8 million based on the expected sale of 170 new housing units. As a result, Instone began the year with a significantly higher sales volume than in the same period last year (Q1 2018: EUR 30.0 million). Due to the positive business development, adjusted earnings before interest and taxes (EBIT) also improved considerably to EUR 15.7 million, exceeding the previous year's figure (Q1 2018: EUR 8.1 million) by 93.8%. The EBIT margin increased accordingly to 18.6% (Q1 2018: 15.4%). With an adjusted gross profit margin of 32.2% in the first quarter, Instone is within the full-year outlook for 2019 of around 28%.
At approximately 90%, the volume of concluded sales contracts realised in the first quarter is largely concentrated in Germany's important metropolitan regions. Prospering medium-sized cities account for about 10%. As of the reporting date on 31 March 2019, Instone's project portfolio included a total of 45 projects with 11,041 units and an anticipated sales volume of around EUR 4.8 billion.
The management board confirms its outlook for the year and continues to anticipate the following development for the 2019 fiscal year:
- Adjusted revenues: EUR 500 million to EUR 550 million
- Adjusted gross profit margin: around 28%
- Adjusted EBIT: EUR 85 million to EUR 100 million
The report on the first quarter of 2019 is available on the company website for download at the following address:
Instone Real Estate
Tel.: +49 (0)201 45355-365
Fax: +49 (0)201 45355-904
Instone Real Estate
c/o RUECKERCONSULT GmbH
Tel.: +49 (0)30 2844987-47
Fax: +49 (0)30 2844987-99