Instone Real Estate Group AG / Key word(s): Preliminary Results/Forecast
2020 adjusted net income exceeds expectations; 2021 adjusted net income guidance confirmed despite lower expected 2021 adjusted revenues
- 2020 adjusted revenues of approx. EUR 480 million in line with guidance (EUR 470-500 million)
- 2020 adjusted earnings after tax amount to approx. EUR 40 million, substantially exceeding previously communicated expectations (EUR 30-35 million) as well as analysts' consensus estimates
- 2020 adjusted gross margin of approx. 30% (forecast > 28%) a major driver of positive earnings development
- 2021 lowered adjusted revenue guidance of EUR 820-900 million (previously EUR 0.9-1.0 billion) reflects increased Covid-19 related risks of delayed regulatory approvals
- 2021 adjusted earnings after tax guidance of EUR 90-95 million confirms previous communication and reflects increased margin expectations
Instone continues to benefit from the ongoing positive demand environment for German residential properties in metropolitan regions. However, regulatory approvals for certain Instone projects are at risk to be delayed versus our previous expectations due to the ongoing COVID-19 related lock-down. As a result the management board now expects 2021 adjusted revenues to amount to EUR 820-900 versus previous guidance of EUR 0.9-1.0 billion. Previous expectations with respect to 2021 earnings after tax, however, are confirmed at EUR 90-95 million as the positive pricing environment, a beneficial project sales mix and construction cost benefits across our projects are expected to continue to materialise throughout fiscal year 2021.
In line with these expectations management guides for a 2021 adjusted gross margin of 26-27% and 2021 volume of concluded sales contracts of at least EUR 900 million.
Instone will publish its final results and annual report for 2020 on 18 March 2021, as planned.
The definitions of the alternative 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
23-Feb-2021 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Instone Real Estate Group AG
+49 201 453 550
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange
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