INSTONE REAL ESTATE GROUP AG Instone Real Estate Group AG: Forecast upgrade for FY 2019

Directive transparence : information réglementée

16/09/2019 21:07

DGAP-Ad-hoc: Instone Real Estate Group AG / Key word(s): Real Estate/Change in Forecast
Instone Real Estate Group AG: Forecast upgrade for FY 2019

16-Sep-2019 / 21:07 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

Instone Real Estate Group AG: Forecast upgrade for FY 2019

Essen, 16 September 2019. Instone Real Estate Group AG raises its projection** for FY 2019.

The Management Board now expects financial year 2019 adjusted revenues* of between EUR 700 million and EUR 750 million and adjusted Group earnings before interest and taxes (EBIT)* between EUR 110 million and EUR 125 million, exceeding the previous forecast.

Most recently, in the half year financial statement 2019 of the company, the Management Board had assumed adjusted revenues of between EUR 500 million and EUR 550 million and adjusted Group earnings before interest and taxes of between EUR 85 million and EUR 100 million.

The adjusted forecast is based on the Management Board's expectation that (i) the purchase agreement for a large property in a German metropolitan region already concluded at the end of last year under a condition precedent, which the company had communicated on 13 December 2018 via ad-hoc-notification, will become unconditional and effective in the current financial year, and (ii), the recently agreed sale of the relevant property to an institutional investor in the form of a share deal** with an expected sales volume of around EUR 600 million for the entire 1,200 or more residential units expected to be built will also become effective in the current financial year.

Against this backdrop, the Management Board also expects the financial year 2019 sales volume to exceed EUR 1.1 bn, significantly above the initial forecast of between EUR 450 million and EUR 550 million. As a result, the threshold of more than one billion euros of sales volume is expected to be exceeded already in the 2019 financial year for the first time.

Also, in consideration of the expected margin of the share deal the Management Board has lowered the adjusted gross profit margin* forecast for the current financial year from around 28 % to around 24 %. Excluding the share deal, the expected adjusted gross profit margin for the 2019 financial year would remain unchanged at about 28 %.


* The definitions of alternative performance measures mentioned in the notification can be found in the glossary on the company's website under http://ir.de.instone.de/websites/instonereal/English/3400/glossary.html.

** Revenue recognition under Instone Group's adjusted results of operations, which is the basis of the Company's forecast, will continue to reflect share deals and asset deals in the same way, i.e. equivalent to the requirements stipulated in IFRS 15 irrespective of an expected IFRS IC decision to exclude share deals from revenue recognition over time in accordance with IFRS 15.


Instone Real Estate Group AG
Investor Relations
Thomas Eisenlohr
Grugaplatz 2-4
45131 Essen
Tel.: +49 (0)201 45355-365
Fax: +49 (0)201 45355-904
E-Mail: thomas.eisenlohr@instone.de

16-Sep-2019 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

Language: English
Company: Instone Real Estate Group AG
Grugaplatz 2-4
45131 Essen
Phone: +49 201 453 550
E-mail: ir@instone.de
Internet: www.instone.de
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 874479

End of Announcement DGAP News Service

874479  16-Sep-2019 CET/CEST