The residential developer Instone Real Estate Group no longer expects to meet its targets for the fiscal year. The company explained that the assumption made when the forecast was issued—that the conflict in the Middle East would have only a short-term impact on business operations—has not been borne out. Rising interest rates and uncertainty are dampening buyer demand and slowing decision-making processes, causing institutional transactions to be postponed until 2027. The Executive Board now expects sales of 500 to 600 million euros (instead of 650 to 750 million euros), adjusted revenue of 450 million euros (instead of 550 to 600 million euros), and adjusted after-tax profit of 25 to 30 million euros (instead of 35 to 40 million euros). The gross profit margin, however, is expected to improve from 24% to over 28%. In the first nine months, revenue (288 million euros) and profit after taxes (12.2 million euros) were below the prior-year figures (347.5 million euros and 21.4 million euros, respectively). Excluding institutional transactions, sales totaled 173.3 million euros (previous year: 229.0 million euros).
I’ll just keep posting updates like this until people here in the forum realize that even the residential sector won’t be a sure thing in the coming months, even if the record dividend is tempting.