Instone Real Estate Group Reports Steady Earnings and Provides Optimistic 2024 Outlook

Instone Real Estate Group SE reported nearly stable adjusted revenues of EUR 616.0 million for 2023, closely mirroring the previous year’s figure of EUR 621.0 million. This stability reflects the company’s consistent execution of sold unit constructions. A high adjusted gross profit margin of 25.1 percent demonstrates the Group's project quality and cost management efficacy. Despite a year marked by market challenges, Instone achieved an adjusted earnings after tax of EUR 48.2 million, hitting the upper end of its EUR 40–50 million guidance range.

The Group experienced a decrease in sales to EUR 211.4 million in 2023, from EUR 292.1 million in 2022, attributed to a demanding market environment. However, an upswing in retail sales towards the end of the year significantly contributed to surpassing the forecasted sales of over EUR 150 million. Instone Group aims to continue its profitability trajectory into 2024, anticipating adjusted revenues between EUR 500 to 600 million and further improving its earnings after tax to EUR 30 to 40 million, along with sales exceeding EUR 300 million.

With a robust balance sheet and a significant portion of its projects pre-sold, the company is well-positioned for future cash flows, maintaining a competitive standing amidst market fluctuations. CEO Kruno Crepulja emphasized Instone's resilience in a tough market, underlining its intentions to leverage its strength for project acquisitions aimed at future growth. The extensive project pipeline of the Group, with a gross development value of approximately EUR 7.0 billion, ensures a sustained business potential over the coming years.