Instone Real Estate Group SE

Latest Results (02.09.2026):

Instone Real Estate Group SE — H1 2026 (first half / Q2 2026): adjusted revenue fell to €184.2m (-20.3% y/y) and adjusted EBIT declined to €15.5m (-46.4% y/y), with adjusted EAT of €1.3m (-92.4% y/y) and adjusted EPS €0.03. Total assets declined to €1,454.9m, net financial debt was €174.4m and leverage stood at 4.2x adjusted EBITDA (LTM). The project portfolio remained large at €7,062.5m while sales momentum improved (volume of sales contracts €114.8m; 221 units). The period was affected by lower construction output (cold winter), higher interest costs and a one‑off disposal of Westville project companies that materially changed reported asset/liability presentation and cash flows.

Top-line and margins

Adjusted revenue H1 2026: €184.2m (-20.3% y/y). Adjusted gross profit €51.4m (-12.1% y/y) with an adjusted gross profit margin of 27.9% (prior 25.3%), reflecting lower construction output but still a strong project margin in management’s view.

Profitability trajectory

EBIT adjusted: €15.5m (-46%). EBT adjusted: €1.9m (-92%). EAT adjusted: €1.3m (-92%). Adjusted earnings per share €0.03 vs €0.39 a year earlier — shows sharp near‑term profit compression despite persistent project margins.

One‑off Westville transaction impact

Sale of Westville-related PropCo entities generated €34.0m other income; the deconsolidation removed inventory assets of €288.5m and bank balances of €89.3m and reduced related liabilities (subsidized loans, subsidies, payables, tax liabilities). That transaction materially altered reported balance‑sheet comparatives and cash flow timing.

Cash flow and liquidity

Cash and cash equivalents and term deposits: €291.4m (cash excl. restricted balances ≈ €257.9m). Cash flow from operations €42.7m (improved); cash flow from operations excluding new land investments €73.6m. Free cash flow for H1: negative €72.2m (impacted by investing and the Westville transactions and loans to non‑consolidated projects).

Debt, leverage and capital structure

Net financial debt €174.4m; leverage (NFD / adjusted EBITDA LTM) 4.2x. Loan‑to‑cost (expanded methodology) 16.9% (31/12/25: 11.2%). Equity €610.6m; total assets €1,454.9m. Management flags temporary leverage increases from new land investments but views balance sheet as sound.

Project portfolio and sales

Project portfolio value €7,062.5m (slight decrease vs YE 2025). Sales: volume of sales contracts €114.8m in H1 2026 (221 units), up vs H1 2025. Project portfolio expected gross profit margin ~24.1% (excluding Westville); marketed pipeline on the market ~642 units (€390m expected revenue).

Financial result and interest impact

Adjusted financial result worsened to €-13.6m (from €-5.0m) driven by higher interest rates and increased borrowing costs; capitalized interest reclassifications on sales also weighed on the period’s financial result.

Platform costs, workforce and other operational notes

Platform costs adjusted €-39.2m (up, driven by higher staff costs, LTIP and provisions). Employees (average) 431 headcount (FTE 359.7). Management continues to expect increased marketing and institutional sales activity in H2 2026.