Q3 2024 Instone Real Estate Group SE Earnings Call Transcript
Key Points
- Instone Real Estate Group SE (XTER:INS) delivered a solid performance in Q3 2024, maintaining strong cash generation with an operating cash flow of EUR 127.1 million.
- The company has a low financial leverage with an LTC of only 8.8% and a substantial cash position of around EUR 270 million, positioning it well for future growth investments.
- Retail sales have significantly recovered, driven by buy-to-let investors and a rising share of owner-occupiers, indicating improved market conditions.
- Instone Real Estate Group SE (XTER:INS) achieved a high gross margin of 24.2%, reflecting operational excellence and cost leadership.
- The company is confident in achieving its full-year 2024 targets, with expected revenues in the lower half of the forecast range and adjusted earnings within the range of EUR 30 to 40 million.
- Adjusted revenues for the first nine months of 2024 were slightly below the previous year's level, attributed to lower construction output.
- Institutional investors remain cautious, impacting the pace of institutional deal signings.
- The market for institutional transactions is still challenging, with only one additional transaction expected by year-end.
- The gross margin is expected to decrease slightly in the future due to a change in the product mix and construction price inflation.
- The company faces challenges in the acquisition market, with sellers still asking for high values despite market conditions, delaying potential acquisitions.
Thank you. Good morning everyone. I would like to welcome you all to our Q324 earnings call our CEO Krono Polier and our CFO David Drus will walk you through our presentation and give you an update on our current business performance and our outlook. As usual, this will be followed by Q&A session with this. I would like to hand over directly to Krono.
Hello, everyone. Thank you for joining our Q3 earnings call Instone has once again delivered a very solid performance in the third quarter in what remains a challenging environment. The results also show that we are well on track to achieve our full year 2024 targets.
The market recovery continues and we are also seeing really encouraging momentum especially after the summer break. The market is still showing a differentiated picture, but we have seen a noticeable pickup in demand in our retail business, especially since September investor sentiment is improving, which is certainly a result of the
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