2 5
interim management statement
as of march 31
gateway real estate ag
Interim management statement as of March 31, 2025
at a glance
key financial indicators in € thousand | 01/01- 03/31/2025 | 01/01- 03/31/2024 |
Financial performance indicators | ||
Revenue | 11,473 | 39,200 |
Gross profit | 27,835 | 28,932 |
ebit adjusted | 8,612 | 10,047 |
ebt | -4,691 | -4,757 |
Consolidated profit/loss | -6,348 | -5,800 |
Earnings per share in € | -0.03 | -0.03 |
Financial position and liquidity ratios | 03/31/2025 | 12/31/2024 |
Total assets | 1,284,683 | 1,272,298 |
Equity | 63,862 | 70,210 |
Equity ratio | 5.0% | 5.5% |
Cash and cash equivalents | 4,475 | 10,179 |
Net financial debt | 1,051,033 | 1,024,284 |
Portfolio indicators | 03/31/2025 | 12/31/2024 |
Average gross development volume (gdv) in € billion | 4 | 4 |
Number of projects (as of end of March) | 10 | 10 |
For technical reasons, rounding differences may occur in tables and references compared to the mathematically precise values.
02
gateway real estate ag
Interim management statement as of March 31, 2025
overview of the
first three months of 2025
gateway closes the first Quarter of 2025 with a consolidated net loss
ebit amounts to €-4.7 million in the first three months of 2025
gross development volume (gdv) amounts to €3.8 billion as of march 31, 2025
ebit adjusted reaches €8.6 million in the first three months of 2025
earnings per share amount to €-0.03 in the first three months of 2025
forecast for 2025: ebit adjusted of
€110-120 million and ebt of €20-30 million
03
gateway real estate ag
Interim management statement as of March 31, 2025
about usgateway real estate ag, together with its subsidiaries, is one of the leading listed developers of residential real estate and urban Quarters in germany, using resource-saving
wood construction methods. the focus of our real estate development activities is on sustainability and responsible use of resources. our aim is to minimize detrimental effects
on the environment by following a green building approach. thus, we make a significant contribution to reducing
the carbon dioxide concentration in the earth's atmosphere.
we develop sustainable and modern living Quarters using wood construction methods across germany, primarily in selected
high-growth regions.
we are committed to the highest level of professionalism and sustainability in project development and to delivering tailor-made risk-optimized solutions, and can rely on an experienced management team. a challenging and sustainable project development that is in line with market needs
reQuires an intense collaboration of specialists that complement and inspire each other. in terms of development, we cover
the entire value chain from the acQuisition of land and projects through development and construction to the sale of
the properties.
04
Interim management statement as of March 31, 2025 Fundamental information on the Group and strategy
interim group management reportfundamental information on the group and strategy
Gateway Real Estate ag (in the following also referred to as "gateway", "Company" or "Group", in each case referring to the gateway Group as a whole) is a listed developer of residential real estate in Germany with a market capitalization of around €148 million (as of March 31, 2025). Established in 2006, gateway can look back on extensive expertise in the German real estate market and is currently (as of March 31, 2025) developing real estate with a gross development volume (gdv) of €3.7 billion.
In this context, gateway focuses on Germany's selected high-growth areas and covers all of the important steps in the value creation chain of a development project with its own in-house teams. In all of its project developments, gateway pursues the strategy of generating attractive margins and, at the same time, minimizing the project development risk by means of a detailed process management. In fiscal year 2020, the Management Board and the Supervisory Board jointly decided to build residential real estate in future also for the Company's own portfolio (build-to-hold). Since then, in the context of this extended corporate strategy, gateway has been increasingly seeking to develop residential real estate for long-term holding and administration to generate sustainable rental revenues. Accordingly, the Standing Assets and Residential Properties Development segments will be expanded further in the medium term. In 2021, gateway sold all its shares in Development Partner ag and, except for three commercial properties development projects in Berlin, discontinued nearly all its activities in the Commercial Properties Development segment in order to focus its development activities increasingly on the Residential Properties Development segment and develop residential real estate and urban quarters. However, as the necessary shareholder approval could not be obtained, three development projects for commercial properties in Berlin have remained in gateway's ownership and are planned to be sold over time.
gateway regularly carries out sensitivity analyses in connection with the calculation and supervision of projects and the related financing arrangements, in which the effects of potential increases in construction costs are examined and suitable countermeasures taken to offset them are reviewed. Upon purchase, all our projects are generally evaluated and analyzed on an individual basis. In order to facilitate a close cost control and management, a regular internal meeting is held each month for each project, with the Management Board also being involved in each case. In connection with all sales of real estate and development projects, the Management Board, in turn, has to liaise with the Real Estate Committee, which consists of two members of the Supervisory Board and must grant its approval for the transaction.
When acquiring new plots of land, gateway focuses on space where there are no finally approved zoning or land use plans. This enables gateway to leverage potential value thanks to its long-standing expertise in the process of obtaining planning permissions and to actively determine the planning process for developments early on. gateway's focus as regards land purchases is always on real estate development rather than the speculative resale of undeveloped sites. Accordingly, gateway also lives up to its corporate social responsibility by newly constructing much needed residential space in Germany.
In connection with the sale of its development projects, gateway primarily addresses institutional investors, operates on the basis of lean and recurring sales structures and primarily follows a forward sales model pursuant to which properties are sold to investors once the building permit is obtained. gateway then completes the projects, but generates revenue already upon the conclusion of a forward sales contract based on the progress of the construction activities. This strategy, together with contractually agreed payment schedules, enables gateway to generate long-term and stable cash flows from its development projects.
gateway is continuing its existing business of holding properties to generate stable and sustainable cash flows in order to diversify risk.
Interim management statement as of March 31, 2025
Business development Financial position
Cash flows
business development
In the first three months of 2025, the existing project developments progressed as planned. The progress of the SoHo Mannheim project led to revenues of €11.2 million.
financial position
The gateway Group's total assets increased slightly as of March 31, 2025 by €12.4 million to €1,284.7 million (December 31, 2024: €1,272.3 million).
On the assets side, the increase mainly resulted from current assets, which rose by €12.5 million to €1,076.3 million. This was primarily attributable to an increase in inventories of €15.6 million, driven by the ongoing capitalization of construction work and construction period interest in the amount of €22.4 million, less the disposal of project costs of €-7.1 million in connection with the forward sale of the SoHo Mannheim project. In addition, other financial assets increased by €2.2 million, which was mainly due to the increase in contract assets from forward sales, in particular in the SoHo Mannheim project. By contrast, cash and cash equivalents decreased by €5.7 million to €4.5 million as a result of the cash flows described above.
On the liabilities side, the Group's non-current liabilities amounted to €183.1 million as of the reporting date (December 31, 2024: €180.8 million). The majority was attributable to non-current financial liabilities in the amount of €144.2 million (December 31, 2024: €144.3 million).
Current liabilities increased to €1,037.7 million as of March 31, 2025 (December 31, 2024: €1,021.2 million). Of this amount,
€90.0 million was attributable to trade payables (December 31, 2024: €88.0 million) and €904.3 million to current financial liabilities (December 31, 2024: €883.2 million). The increase mainly resulted from accrued interest and additions to financing for project developments. Other current provisions decreased by
€4.3 million to €15.8 million as a result of utilizations.
The gateway Group's equity amounted to €63.8 million as of March 31, 2025 (December 31, 2024: €70.2 million). The decrease is attributable to the negative consolidated total comprehensive income of €-6.3 million. Due to the increase in total assets, the equity ratio decreased slightly to 5.0% (December 31, 2024: 5.5%).
cash flows
The cash flows incurred in the first three months of the fiscal year 2025 led overall to a decrease in cash and cash equivalents as of March 31, 2025. The decrease mainly resulted from cash flows from operating activities, which were characterized by the repayment of liabilities.
In the same period of the previous year, the net decrease in cash and cash equivalents primarily resulted from the repayment of financing for the Hamburg Seevestraße project in the amount of €35.0 million. The cash inflows generated from the disposal of the project in the same amount increased cash flows from operating activities; however, these were reduced over time due to progressing construction activities and the associated expansion of inventories.
-
condensed cash flow statement
in € thousand
01/01-
03/31/2025
01/01-
03/31/2024
Cash flows from operating activities
-14,898
16,792
Cash flows from investing activities
-125
2,865
Cash flows from financing activities
9,320
-23,702
Net decrease in cash and cash equivalents
-5,703
-4,045
Cash and cash equivalents as of 01/01
10,179
8,121
Cash and cash equivalents as of the end of the period
4,475
4,076
Cash flows from operating activities amounted to €-14.9 million in the first three months of the fiscal year 2025 (Q1 2024:
€16.8 million). The cash outflow mainly resulted from the expansion of inventories as well as the repayment of current liabilities. In the same period of the previous year, positive cash flows from operating activities were generated in particular due to the disposal of the Hamburg Seevestraße project property in the amount of €35.0 million.
Cash flows from investing activities were negative at €-0.1 million and thus below the prior-year figure of €2.9 million. The cash outflows mainly resulted from investments in yield properties. In the previous year, cash inflows were generated from government grants for a project of the SoHo Mannheim project development.
Interim management statement as of March 31, 2025
Cash flows from financing activities amounted to €9.3 million (Q1 2024: €-23.7 million). This mainly resulted from the repayment of loans in the amount of €-5.1 million and proceeds from the raising of financial loans in the amount of €14.4 million. In the same period of the previous year, loan liabilities were repaid in connection with the financing of the Hamburg Seevestraße project in the amount of €25.4 million.
Overall, there was a net decrease in cash and cash equivalents of €-5.7 million in the first three months of the fiscal year 2025. Accordingly, cash and cash equivalents amounted to €4.5 million as of March 31, 2025, after €10.2 million as of December 31, 2024.
financial performance
In the first quarter of 2025, the Group generated revenues of
€11.5 million (Q1 2024: €39.2 million). These mainly resulted from the progress of a forward sale contract for the "SoHo Mannheim" project in the amount of €7.6 million. In the same period of the previous year, revenues were significantly influenced by the sale of the Hamburg Seevestraße project property with a purchase price of €35.0 million. Revenue from rental services decreased slightly to €3.9 million (Q1 2024:
€4.2 million).
Changes in inventories amounted to €15.3 million (Q1 2024:
€-11.0 million) and mainly consist of ongoing capitalized construction work and construction period interest totaling
€22.4 million. This was offset by the disposal of project costs of €-7.1 million relating to the "SoHo Mannheim" project. In the previous year, the disposal of the Hamburg Seevestraße project property in the amount of €-35.0 million had a significant impact.
Including the increase in other operating income by €0.4 million to €1.1 million, total operating income amounted to €27.8 million (Q1 2024: €28.9 million).
Costs for raw materials and consumables used amounted to
€14.3 million in the reporting period and thus decreased by
€0.3 million compared to the prior-year period. They mainly comprise production costs of inventory properties of €9.2 million (Q1 2024: €13.3 million), impairment losses of €3.8 million (Q1 2024: €0.0 million), and operating costs of rented properties of €1.3 million (Q1 2024: €1.4 million).
In the first three months of the fiscal year 2025, employee benefits expense increased by €0.4 million to €1.3 million due to a higher headcount. Other operating expenses amounted to €3.6 million, slightly above the prior-year level of €3.3 million. In this context, impairment losses on receivables in the amount of €1.4 million were recognized (Q1 2024: €1.8 million). Overall, gateway generated an operating result of €-8.6 million in the first three months of the fiscal year 2025 (Q1 2024: €10.0 million).
Financial performance Report on risks and opportunities
Net finance costs for the first three months of the fiscal year 2025 amounted to €-13.3 million (Q1 2024: €-14.8 million) and include interest expenses of €15.9 million (Q1 2024: €18.0 million). Interest expenses were offset by interest income of €2.6 million (Q1 2024: €3.2 million).
Earnings before tax (ebt) amounted to €-4.7 million (Q1 2024:
€-4.8 million). After deducting income taxes of €1.6 million (Q1 2024: €1.0 million), the consolidated net loss for the first three months of the fiscal year 2025 amounted to €-6.3 million (Q1 2024: €-5.8 million). This corresponds to basic earnings per share of €-0.03 (Q1 2024: €-0.03) and diluted earnings per share of €-0.03 (Q1 2024: €-0.03). ebit adjusted amounted to €8.6 million (Q1 2024: €10.0 million).
report on risks and opportunities
The risks that Gateway Real Estate ag is exposed to within the framework of its business activities, as well as the opportunities arising for the Company were described in detail in the 2024 Annual Report on pages 42-50. In this context, the Group's risk management system was explained, property-specific and company-specific risks and their respective probability of occurrence were presented as well as their potential financial effects were classified based on a risk classification.
Overall, the ability of the Group to continue as a going concern is dependent on sufficient liquidity being generated through the scheduled realization of project sales and on unplanned outflows of liquidity being avoided as part of loan extensions.
If, contrary to the expectations of the Management Board, a significant portion of the financing that has not yet been extended is not prolonged and, at the same time, the sale of significant projects cannot be realized as planned - in particular not at the intended dates and disposal prices - this would jeopardize the continued existence of the subsidiaries involved in these projects.
Any deviations from the measures set forth in the extension agreements could likewise jeopardize the continued existence of the subsidiaries involved in these projects.
Due to guarantees and sureties granted as of the reporting date in the amount of €85.5 million, such a development could also have an impact on the parent company and thus on the entire Group. Based on the progress of the projects, the Management Board currently does not anticipate that these guarantees and sureties will be utilized.
Interim management statement as of March 31, 2025
In this context, we expressly refer to the disclosures in the notes to the 2024 consolidated financial statements in the sections "2.1 Basis of the consolidated financial statements" on page 65, "3.7 Liquidity risk" on page 87, "8.8 Significant events after the reporting date" on page 129 as well as the disclosures in the 2024 Group management report in the sections "3.2.2 Company-specific risks" on page 45 and "3.2.3 Overall assessment of the risk situation" on page 50, where the Management Board describes the existing going concern risks with respect to financing and liquidity.
Financial difficulties of other companies may open up opportunities to acquire properties in particularly attractive locations or subject to particularly favorable terms. This would also offer the opportunity to acquire properties at prices that are lower than originally assumed. For further details, we refer to the report on opportunities in the 2024 Annual Report on page 50.
Report on expected developments
report on expected developments
outlook for the gateway group
By way of an ad hoc announcement dated 31 March 2026, gateway published preliminary and unaudited figures for the fiscal year 2025.
Based on these preliminary and as yet unaudited figures, the Management Board expects the fiscal year 2025 to be concluded with earnings before taxes (ebt) in a range of €110-120 million and an adjusted ebit of €20-30 million.
As a result of the disposals carried out, the Management Board expects gross development value (gdv) to decline in 2025.
Interim management statement as of March 31, 2025 ifrs consolidated statement of financial position
interim consolidated financial statements as of march 31, 2025 ifrs consolidated statement of financial positionas of march 31, 2025
assets
in € thousand | 03/31/2025 | 12/31/2024 |
Non-current assets | ||
Intangible assets and goodwill | 0 | 0 |
Property, plant and equipment | 0 | 0 |
Investment properties | 113,412 | 113,300 |
Investments accounted for using the equity method | 0 | 0 |
Other non-current financial assets | 82,770 | 85,027 |
Deferred tax assets | 12,154 | 12,057 |
208,336 | 210,384 | |
Current assets | ||
Inventories | 910,406 | 894,739 |
Trade receivables | 1,147 | 2,677 |
Income tax receivables | 128 | 135 |
Other financial assets | 17,758 | 13,691 |
Other non-financial assets | 62,852 | 60,913 |
Cash and cash equivalents | 4,475 | 10,179 |
Non-current assets held for sale | 79,580 | 79,580 |
1,076,347 | 1,061,914 | |
1,284.683 | 1,272,298 |
eQuity and liabilities
in € thousand | 03/31/2025 | 12/31/2024 |
Equity | ||
Subscribed capital | 186,764 | 186,764 |
Reserves | -389,131 | -389,131 |
Retained earnings | 279,743 | 285,973 |
Non-controlling interests | -13,514 | -13,396 |
63,862 | 70,210 | |
Non-current liabilities | ||
Non-current financial liabilities | 144,235 | 143,667 |
Deferred tax liabilities | 410 | 431 |
Other non-current financial liabilities | 38,429 | 36,741 |
183,074 | 180,839 | |
Current liabilities | ||
Other current provisions | 15,777 | 20,035 |
Current financial liabilities | 904,334 | 883,206 |
Income tax liabilities | 5,521 | 6,581 |
Trade payables | 89,989 | 88,039 |
Other financial liabilities | 6,529 | 7,159 |
Other non-financial liabilities | 5,117 | 5,529 |
Long-term debt held for sale | 10,480 | 10,600 |
1,037,747 | 1,021,249 | |
1,284,683 | 1,272,298 |
Interim management statement as of March 31, 2025 ifrs consolidated statement of comprehensive income
ifrs consolidated statement of comprehensive incomefrom january 1 to march 31, 2025
in € thousand | 01/01- 03/31/2025 | 01/01- 03/31/2024 |
Total | Total | |
Revenue | 11,473 | 39,200 |
Changes in inventories of finished goods and work in progress | 15,284 | -10,983 |
Other operating income | 1,078 | 714 |
Gross profit | 27,835 | 28,932 |
Raw materials and consumables used | -14,308 | -14,650 |
Employee benefits expense | -1,334 | -935 |
Amortization, depreciation and impairment on intangible assets and property, plant and equipment | -13 | -24 |
Other operating expenses | -3,568 | -3,276 |
Operating profit | 8,612 | -10,047 |
Finance income | 2,612 | 3,226 |
Finance costs | -15,914 | -18,030 |
Net finance costs | -13,302 | -14,804 |
Profit/loss before tax | -4,691 | -4,757 |
Income tax expense | -1,658 | -1,043 |
Profit/loss for the period | -6,348 | -5,800 |
Other comprehensive income/loss | 0 | 0 |
Total comprehensive income/loss for the period | -6,348 | -5,800 |
Attributable to equity holders of the parent company | -6,230 | -4,473 |
Attributable to non-controlling interests | -118 | -1,328 |
Earnings per share (basic) | -0.03 | -0.03 |
Earnings per share (diluted) | -0.03 | -0.03 |
Interim management statement as of March 31, 2025 ifrs consolidated statement of cash flows
ifrs consolidated statement of cash flowsfrom january 1 to march 31, 2025
in € thousand | 01/01- 03/31/2025 | 01/01- 03/31/2024* |
Cash flows from operating activities | ||
Total comprehensive income/loss for the period | -6,348 | -5,800 |
Adjustments for: | ||
Impairment losses | 3,813 | 1,962 |
Tax expenses | 1,658 | 1,042 |
Net finance costs | 13,302 | 14,800 |
Changes in: | ||
Inventories | -19,467 | 11,206 |
Trade receivables and other receivables | 1,529 | -183 |
Other financial assets | 699 | -247 |
Non-financial assets | -1,837 | 1,827 |
Trade payables and other payables | 1,932 | -668 |
Non-financial liabilities | -512 | 84 |
Other provisions as well as assets and provisions for employee benefits | -4,258 | 11 |
Other financial liabilities | -685 | -1,064 |
Interest paid | -3,624 | -5,978 |
Income taxes received | 9 | 0 |
Income taxes paid | -1,110 | -200 |
Cash flows from operating activities | -14,898 | 16.792 |
Cash flows from investing activities | ||
Payments for investments in investment properties | -112 | -524 |
Proceeds from government grants | 0 | 3,389 |
Purchase of property, plant and equipment | -13 | 0 |
Cash flows from investing activities | -125 | -2,865 |
Cash flows from financing activities | ||
Cash inflows from new (financial) loans | 14,386 | 17,482 |
Payments for lease liabilities | -4 | -40 |
Repayments of loans | -5,062 | -41,144 |
Cash flows from financing activities | 9,320 | -23,702 |
Net change in cash and cash equivalents | -5,703 | -4,045 |
Cash and cash equivalents as of 01/01 | 10,179 | 8,121 |
Cash and cash equivalents as of the end of the period | 4,475 | 4,076 |
* Prior-year figures have been partially restated (see Chapter 5. Restatements in accordance with ias 8, Annual Report 2024)
Zwischenmitteilung zum 31. März 2025 ifrs consolidated statement of changes in equity
ifrs consolidated statement of changes in eQuityfrom january 1 to march 31, 2025
Equity attributable to equity holders of the parent company
Subscribed
Retained
Non-controlling
Total
in € thousand | capital | Reserves | earnings | Total | interests | equity |
Balance as of 01/01/2024 | 186,764 | -389,131 | 408,361 | 205,994 | 7,901 | 213,895 |
Restatements in accordance with ias 8* | 0 | 0 | -1,053 | -1,053 | 0 | -1,053 |
Profit/loss | 0 | 0 | -4,473 | -4,473 | -1,328 | -5,800 |
Balance as of 03/31/2024 | 186,764 | -389,131 | 402,836 | 200,469 | 6,573 | 207,042 |
Balance as of 01/01/2025 | 186,764 | -389,131 | 285,767 | 83,606 | -13,396 | 70,210 |
Profit/loss | 0 | 0 | -6,230 | -6,230 | -118 | -6,348 |
Balance as of 03/31/2025 | 186,764 | -389,131 | 279,743 | 77,376 | -13,514 | 63,862 |
* The opening balance of equity as of 1 January 2024 was retrospectively adjusted as part of an error correction in accordance with IAS 8. The comparative information presented reflects the corrected amounts in order to ensure a consistent and comparable presentation.
gateway real estate ag
Interim management statement as of March 31, 2025
financial calendarfinancial calendar | imprint
April 30, 2026 Publication Annual Financial Report
May 29, 2026 Publication Quarterly Statement (call-date Q1)
August 2026 Annual General Meeting (for the financial years 2024 and 2025) September 30, 2026 Publication Half-yearly Financial Report
November 30, 2026 Publication Quarterly Statement (call-date Q3)
imprintPublisher
Gateway Real Estate ag Hardenbergstr. 28a 10623 Berlin, Germany
T +49 30 40 363 47-0
F +49 30 40 363 47-99
info@gateway-re.de https://www.gateway-re.de
Project management
gfd - Gesellschaft für Finanzkommunikation mbH, Frankfurt am Main, Germany
Gestaltung
2dKontor - Aabenraa, Denmark
this is a convenience translation of the german language interim management statement as of march 31, 2025 of gateway real estate ag, which is provided to english speaking readers for informational purposes only. only the german version of this document is legally binding. no warranty is made as to the accuracy of this translation and gateway real estate ag assumes no liability whatsoever with respect thereto.