Rapid advancement in individual and institutional sales for Instone Group; their annual objectives for the year 2025 set in stone.
Instone Group Forecasts Robust Full-Year Performance in 2025
Instone Real Estate Group SE, a leading real estate developer, has confirmed its forecast for 2025, predicting robust revenue and earnings. The company is poised for a strong second half of the year, with a focus on accelerating retail sales and individual unit transactions.
As of 30 June 2025, Instone Group boasts €270 million in cash on hand, a testament to its financial strength. The company's adjusted gross margin for the first half of the year remained high at 25.3%, slightly lower than H1-2024's 25.7%.
In the first half of 2025, Instone sold properties worth around €96.3 million, a decrease from the prior year's level due to fewer institutional sales. However, retail sales to private investors grew significantly by about 58%, reaching approximately €91 million. This growth in retail sales is driven by new projects aligned with the Growth Opportunities Act, which offers enhanced tax depreciation incentives for energy-efficient buy-to-let properties, making them attractive post-tax investments.
Regarding their growth strategy for the second half of 2025, Instone is focusing on accelerating retail sales with plans to launch five additional new sales projects by the end of the year. These efforts target private buy-to-let investors and owner-occupiers, leveraging favourable legislative support to fuel continued growth in individual unit sales.
Instone Group has completed or is nearing completion of five additional land acquisitions, adding to its growth potential. The company has substantial untapped credit lines (RCFs) and project financing lines available.
However, some financial analysts suggest that while the company shows strong profits, part of the recent earnings included unusual items totaling around €4.6 million, which may not be sustainable. This points to possible conservative investor sentiment despite good headline numbers.
In summary, Instone forecasts robust full-year 2025 revenue and earnings with a healthy margin. Retail sales and individual unit transactions are the main growth drivers, supported by targeted projects using tax incentives under the Growth Opportunities Act. The company intends to accelerate growth by expanding its project launches in H2 2025. Some caution is advised due to non-recurring earnings components affecting recent profitability.
Instone Real Estate Group SE reported adjusted revenue of €231.0 million in the first half of 2025, a decrease from H1-2024's €255.4 million. Approximately 92% of the portfolio in the construction phase is already sold, providing high visibility into future revenues and cash flows.
The management board contracts of Kruno Crepulja (CEO) and Andreas Graef (COO) have been extended until mid-2029 and the end of 2027, respectively. The ratio of net debt to adjusted operating earnings before depreciation (adjusted EBITDA) is 2.8x, up from 2.1x at the end of 2024. The ratio of net debt to total assets (Loan-to-Cost, LTC) of Instone Group is currently 12.0%, a slight increase from 10.5% at the end of 2024. The expected gross development value (GDV) of Instone Group's project portfolio is around €6.8 billion, a slight decrease from €6.9 billion at the end of 2024.
Investing in Instone Real Estate Group SE could be beneficial, given their focus on accelerating retail sales and individual unit transactions in the business sector, particularly in the real-estate market. The company's financial strength, evident by €270 million in cash on hand as of 30 June 2025, supports this potential growth.
For private investors, the Growth Opportunities Act offers enhanced tax depreciation incentives on energy-efficient buy-to-let properties, making them lucrative post-tax investments, as seen in the significant growth of retail sales in the first half of 2025. Instone plans to leverage this, targeting more sales to these investors in the second half of the year.
