Instone Real Estate Group (INS) Investor Presentation summary

Key investment highlights

• Leading residential developer in Germany with a comprehensive product portfolio and >30 years of experience; €6.9bn GDV project portfolio as of 31/12/2024; presence in all major metropolitan regions.

• Supported by long-term housing shortage trends, solid profitability even during downturns, and a strong balance sheet with ample cash generation.

• Innovative and scalable nyoo product drives mid-term growth, offering affordable, energy-efficient housing.

• Strong commitment to ambitious ESG goals, including top industry ratings and significant GHG emission reductions.

Q4 2024 highlights and financial performance

• Q4 2024 delivered the strongest quarterly sales since Q4 2021, with €173.6m in sales and broad-based demand from both private and institutional buyers.

• FY 2024 revenues reached €527.2m (down 14.4% yoy), gross profit margin at 22.6%, and EAT at €36.9m (down 23.4% yoy); sales up 56.2% yoy to €330.2m.

• Liquidity of ~€270m plus RCF lines, with very low financial gearing (LTC 10.5%).

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

Market environment and structural trends

• German residential market faces a widening supply shortage, with a cumulative deficit expected to reach ~700k units by 2025, driven by migration and under-delivery of new housing.

• New builds are increasingly attractive due to energy efficiency, with price premiums for certified properties and strong rent growth outpacing existing stock.

• Regulatory support includes tax incentives and subsidies for new builds, boosting buy-to-let investor demand and supporting project economics.