Instone Real Estate Group (INS) Q1 2025 earnings summary

Executive summary

• Achieved strong B2C sales momentum in Q1 2025, with retail sales up 52% year-over-year despite macroeconomic and political uncertainties in Germany.

• Institutional sales pipeline progressing, with several transactions expected to close in H2 2025 and ongoing positive investor discussions.

• New product launches tailored to tax incentives and the Growth Opportunities Act have driven demand, especially among buy-to-let investors.

• Project portfolio expanded to €6,971.4 million (43 projects), with 93% of under-construction units pre-sold and new approvals in key metropolitan regions.

• Management confirms 2025 guidance, expecting adjusted revenue of €500–600 million, gross profit margin of ~23%, and adjusted EAT of €25–35 million.

Financial highlights

• Q1 2025 adjusted revenues were €105 million, down 12.1% year-over-year, with gross margin at 26.8% and adjusted EAT at €7.5 million.

• Sales contracts volume reached €41.6 million, significantly below the prior year due to a large institutional sale in Q1 2024.

• Net financial debt rose to €153.9 million, with a loan-to-cost ratio of 11.8% and net debt to EBITDA at 2.6x.

• Liquidity position exceeds €250 million, with cash and cash equivalents and term deposits at €412.5 million.

• Adjusted EBIT was €12.9 million (down 18.4% year-over-year); adjusted EBITDA was €13.9 million (down 18.7% year-over-year).

Outlook and guidance

• 2025 full-year guidance confirmed: revenues €500–600 million, gross profit margin ~23%, adjusted EAT €25–35 million, and sales contracts volume >€500 million.

• Lower gross margin expected in coming quarters as planned.

• Management expects a significant recovery in demand but not a full return to pre-crisis sales volumes in 2025.

• Continued focus on growth investments and land acquisitions, with several deals in advanced negotiation.