Instone Real Estate Group Se · XETR:INS
Instone Real Estate — Q1 2022 Earnings Presentation
30 slides from Instone Real Estate's earnings presentation, May 11, 2022
Slide 1: Q1 2022 Results Presentation
Q1 2022 Results Presentation
Slide 2: Disclaimer
Disclaimer 2 | 11.05.2022 | Q1-2022
Slide 3: Agenda
01 Highlights 02 Portfolio Update 03 Q1 Financial Performance 04 Outlook 05 Appendix
Slide 4: Highlights
INSTONE REAL ESTATE Highlights
Slide 5: Highlights
Highlights Solid start to the year with continued high margins – High short term uncertainties Sales: Q1 demand continued at elevated levels; initial signs of demand slow down in our retail projects Institutional customers still lacking attractive alternative investment opportunities Supply: S
Slide 6: Robust retail demand despite crisis and rise in interest rates
Robust retail demand despite crisis and rise in interest rates Sales ratio In % Long term Instone sales ratio Sales ratio 5.0 Influenced Influenced by bloc sale by bloc sale 4.6 4.6 4.5 4.4 4.2 4.2 4.2 4.0 4.1 3.8 3.5 3.5 3.4 3.5 3.4 3.5 3.5 3.5 3.6 3.6 3.4 3.4 3.4 3.4 3.2 3.2 3.3 3.3 3.3 3.3 3.3 3.
Slide 7: Economic indicators point to rising short term risks
Economic indicators point to rising short term risks Price development of selected construction materials1 – 2022 YTD Price expectations building construction2 In € Share in % 80 Dec-21 + ~30% Steel 60 Mar-22 40 12-21 20 0 Dec-21 315 Bitumen + ~40% -20 Jul-20 Jul-21 Aug-20 Jun-20 Sep-20 Nov-20 Dec-2
Slide 8: Jump in interest implies rising uncertainty – positive price trend continued in Q1
Jump in interest implies rising uncertainty – positive price trend continued in Q1 Interest - Average 10y-fixed rate mortgage2 Strong jump in interest rates within very short time period 10y 2.59% negatively effects affordability for certain customer groups Strong volatility in interest rates co
Slide 9: Portfolio Update
INSTONE REAL ESTATE Portfolio Update
Slide 10: Significant pipeline supports visibility for coming years
Significant pipeline supports visibility for coming years Project portfolio development (GDV) Exp. sales New project approvals Exp. units In €m volume (€m) 1 YTD 2022 1 Metropolitan area NRW 14 34 Metropolitan area Nuremberg 85 140 Metropolitan area Berlin 145 361 Metropolitan area Frankfurt/Main 41
Slide 11: Pre-sold units support future cash flow and earnings visibility
Pre-sold units support future cash flow and earnings visibility Project portfolio as of 31/03/2022 by region (GDV) Project portfolio as of 31/03/2022 by building right status (GDV) In % Munich Hamburg 3.6 55 projects / 16,607 units 6.5 Leipzig Frankfurt 87% in metropolitan regions ~57% Building
Slide 12: The scaling of the business continues to gain momentum
The scaling of the business continues to gain momentum Project portfolio – foundation for future growth Adjusted revenues In €bn 7.5 7.6 In €m Westville project €220.8m 6.1 783.6 5.8 736.7 4.8 480.1 3.4 372.8 201.4 2017 2018 2019 2020 2021 Q1 2022 2017 2018 2019 2020 2021 Units under construction –
Slide 13: Q1 2022 Financial Performance
Q1 2022 Financial Performance
Slide 14: Adjusted Results of Operations
Adjusted Results of Operations Leading profitability maintained €m Q1 2022 Q1 2021 Change Revenues 118.5 128.1 -7.5% Lower revenues as prior year’s figure benefitted from Project cost -83.3 -87.6 -4.9% signing of institutional deals Gross profit 35.2 40.5 -13.1% Gross Margin 29.7% 31.6% Industry
Slide 15: Strong balance sheet secures defensive profile and leaves headroom for growth
Strong balance sheet secures defensive profile and leaves headroom for growth €m 31/03/2022 31/12/2021 21.8% LTC implies very low financial gearing Corporate debt 200.3 199.1 Project debt 227.5 191.4 Reminder: inventories are recorded at historical costs Financial debt 427.7 390.5 Significant
Slide 16: Financially strong position
Financially strong position t/o t/o Cash Flow (€m) Q1 2022 Q1 2021 Liquidity (€m) Total drawn available EBITDA adj. 18.2 27.9 Corporate debt Other non-cash items -6.4 -2.5 Promissory notes 197.5 197.5 0.0 Revolving Credit Facilities 119.0 0.0 119.0 Taxes paid -0.4 -8.5 Total 316.5 197.5 119.0 Change
Slide 17: Well balanced financing structure at attractive terms
Well balanced financing structure at attractive terms Maturity profile (corporate debt) as of 31/03/2022 Secured/unsecured as of 31/03/2022 In €m Corporate debt Project debt, secured 46.5% 100 Total: 53.5% €424m 70 28 2022 2023 2024 2025 Weighted average corporate debt maturity 2.2 years Project f
Slide 18: Intrinsic pipeline value indicates fundamental upside
Intrinsic pipeline value indicates fundamental upside Additional upside from planned future growth investments Prospective NAV (€m) 31/03/2022 31/12/2021 Expected selling prices of project 7,568 7,500 pipeline (GDV) Payments received reflect project related income received to Payments received -1,
Slide 19: Appendix
INSTONE REAL ESTATE Appendix
Slide 20: ESG
INSTONE REAL ESTATE ESG
Slide 21: 2021 ESG achievements and disclosures
2021 ESG achievements and disclosures • Scope 1, 2 and 3 GHG 1 emissions according to TCFD 3 guidelines • SBTI2 compliant net zero targets (Net zero climate neutrality by 2045) Environment • Qualitative climate-scenario analysis • Declared membership of German Sustainable Building Council (DGNB), pr
Slide 22: GHG emissions of the INS portfolio significantly below German average
Environment GHG emissions of the INS portfolio significantly below German average GHG emissions Instone portfolio1 In kg/(sqm x a) High-quality insulation and modern heating technology lead to significantly reduced GHG emissions for Instone projects 26.0 compared to average of existing resi buildi
Slide 23: Major ESG-KPIs – achievements and targets
Major ESG-KPIs – achievements and targets Major KPIs 2020 2021 Targets Expected GHG emissions of portfolio in use 11 kg CO2e/m² 9.5 kg CO2e/m² -50% (2030 vs. 2020) Share of projects with renewable energy supply ~14% ~22% At least 40% (2030) Share of projects with energy requirements at least NZEB -1
Slide 24: Project Portfolio Key Figures
Project Portfolio Key Figures €m Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Volume of sales contracts 87.6 761.7 170.7 89.1 118.6** 246.0 94.9 54.1* 69.4 Project Portfolio 7,567.7 7,500.0 7,154.9 6,268.1 6,054.2 6,053.6 5,937.5 5,701.3 5,744.4 thereof already sold 3,070.
Slide 25: Project Portfolio as of 31/03/2022
Project Portfolio as of 31/03/2022 (projects > €30m sales volume, representing total: ~ €7.6bn) Sales volume Land plot Building right Sales Construction Project Location (expected) acquired obtained started started Hamburg Schulterblatt "Amanda" Hamburg 96 Mio. € Kösliner Weg Norderstedt-Garstedt 93
Slide 26: Project Portfolio as of 31/03/2022
Project Portfolio as of 31/03/2022 (projects > €30m sales volume, representing total: ~ €7.6bn) Sales volume Land plot Building right Sales Construction Project Location (expected) acquired obtained started started Rhine-Main Wiesbaden-Delkenheim, Lange Seegewann Wiesbaden 106 Mio. € Siemens-Areal F
Slide 27: Project Portfolio as of 31/03/2022
Project Portfolio as of 31/03/2022 (projects > €30m sales volume, representing total: ~ €7.6bn) Sales volume Land plot Building right Sales Construction Project Location (expected) acquired obtained started started Baden-Wurttemberg City-Prag - Wohnen im Theaterviertel Stuttgart 128 Mio. € Schwarzwa
Slide 28: Instone Share
Instone Share Basic data Shareholder structure (May 09, 2022) • ISIN: DE000A2NBX80 Fidelity 9.99% • Ticker symbol: INS • No of shares: 46,988,336 Janus Henderson 8.40% • Index: SDAX Activum 5.09% • Market cap*: €690m • Average daily trading Capital 4.87% volume: €1.4m • Free float (May 09, 2022): 99
Slide 29: Financial Calendar
Financial Calendar 2022 May 12 Quarterly Statement for the first quarter of 2022 May 13 Roadshow Europe, Deutsche Bank (virtual) May 16 Roadshow UK, Credit Suisse, (London) May 19 German SMID Cap Forum, Stifel Europe, Frankfurt/Main May 25 dbAccess German Corporate Conference, Fankfurt/Main June 09
Slide 30: Investor Relations Contacts
Investor Relations Contacts Burkhard Sawazki Head of Business Development & Communication T +49 201 45355-137 M +49 173 2606034 burkhard.sawazki@instone.de Simone Cujai Tania Hanson Senior Investor Relations Manager Roadshows & Investor Events T +49 201 45355-428 T +49 201 45355-311 M +49 162 803579
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