Instone Real Estate Group (INS) Investor Presentation summary

Key investment highlights

• Leading German residential developer with over 30 years of experience and a €7.0bn project portfolio as of March 2025.

• Strong profitability and cash generation, maintaining solid margins even during downturns.

• Innovative, scalable nyoo product line drives mid-term growth, focusing on affordable housing.

• Robust balance sheet with low leverage (LTC 11.8%) and significant liquidity for growth investments.

• Strong ESG commitment, with top industry ratings and ambitious climate targets.

Q1 2025 highlights and financial performance

• Retail sales up 52% year-over-year, driven by new product launches and tax incentives for buy-to-let investors.

• Q1 revenues at €105.0m (-12.1% yoy), gross profit margin at 26.8%, and EAT at €7.5m (-21.9% yoy).

• Outlook for 2025 confirmed: revenues €500–600m, gross margin ~23%, EAT €25–35m, sales >€500m.

• 93% of under-construction projects (GDV €2.9bn) already sold, de-risking future cash flows.

• Strong cash position (>€250m) and new €100m RCF line provide ample financial flexibility.

Market environment and growth opportunities

• German housing shortage expected to reach 700k units by 2025, with completions well below government targets.

• New builds gain attractiveness due to energy efficiency, with Instone leading in ESG-compliant developments.

• Market consolidation phase offers acquisition opportunities as smaller players struggle.

• Regulatory framework and subsidy schemes (e.g., Growth Opportunities Act) support demand and investor returns.

• Instone’s diversified portfolio spans all major German metropolitan regions, with ~14,236 units and €6.9bn GDV.