Instone Real Estate Group (INS) investor relations material

Executive summary

• Q1 2026 revenue was €79.3 million, down 24.5% year-over-year due to geopolitical uncertainty, a cold winter, and project handovers, but gross margin improved to 27.6%.

• Adjusted earnings after tax fell to €0.9 million, with EBIT at €4.6 million, reflecting temporary headwinds.

• Retail demand remained solid, with sales up 5.9% year-over-year, while institutional deals worth ~€80 million are in advanced stages.

• Project portfolio comprised 48 projects with €7.0 billion GDV, diversified across major German metropolitan regions.

• Outlook for 2026 is confirmed, with expectations of strong topline and bottom-line improvements in coming quarters.

Financial highlights

• Adjusted Q1 2026 revenues: €79.3 million (-24.5% yoy), with sales contracts at €41.7 million (+0.2% yoy; retail sales +5.9%).

• Gross profit margin at 27.6% (Q1 2025: 26.8%), above industry benchmark; full-year target remains above 24%.

• Adjusted EBIT: €4.6 million (Q1 2025: €12.9 million); EBIT margin: 5.8%.

• Adjusted EAT: €0.9 million (Q1 2025: €7.5 million); EPS: €0.02 (Q1 2025: €0.17).

• Tangible book value per share: €14.50 (2025: €14.12).

Outlook and guidance

• 2026 guidance confirmed: revenue €550–600 million, gross margin >24%, adjusted net earnings €35–40 million, sales contracts €650–750 million.

• Forecast assumes no prolonged Middle East conflict or lasting economic disruption, with strong growth expected from new project launches and institutional deals.

• Main risk remains prolonged geopolitical crisis and macroeconomic uncertainty.