In the first quarter of 2020, Instone Real Estate increased sales from EUR 84.2 million to EUR 99.7 million. Before interest and taxes, the real estate group increased its operating profit from 15.7 million euros to 18 million euros. “As expected, the purchase of land, especially in the second half of 2019 and thus the investments in future growth, led to a significant increase in financing costs to EUR 4.7 million (previous year: EUR 2.5 million),” said the company.
Instone Real Estate announces that the COVID-19 pandemic will have a particularly negative impact on sales speed from the second quarter. The company’s Management Board still forecasts a clearly positive operating cash flow for 2020. They also want to pay a dividend for the 2020 financial year next year. The plan is to distribute around 30 percent of the adjusted group earnings to shareholders as a dividend.
The company’s future plans also remain unchanged. In 2021, sales are expected to increase to 900 million euros and profits to 90 million euros; a year later, sales are expected to exceed the billion mark. “Given the existing liquidity base, Instone is excellently positioned to take advantage of additional growth opportunities if necessary,” the company said.
At a glance – chart and news: Instone Real Estate