The Grounds triples EBIT and multiplies net profit in 2020
- Consolidated sales revenues +125 % to EUR 31.3 million
- EBIT tripled to EUR 6.1 million
- Consolidated profit after taxation increased to EUR 4.0 million
- Balance sheet total doubled to more than EUR 87.4 million
Berlin, 23.06.2021 – The Grounds Real Estate Development AG (The Grounds / ISIN: DE000A2GSVV5) completed the financial year 2020 very successfully. In 2020, The Grounds significantly increased consolidated sales revenues to EUR 31.3 million (previous year: EUR 13.9 million) and more than tripled EBIT to EUR 6.1 million (previous year: EUR 2.0 million). Consolidated net income after taxation increased disproportionately to EUR 4.0 million (previous year: EUR 54 thousand).
Important milestones in 2020 include the acquisition of a real estate portfolio with 262 residential and commercial units for the portfolio (Stendal/Prignitz), a non-cash capital increase carried out in the summer of 2020, by means of which five project developments with a total investment volume of more than EUR 100 million – mostly with building rights – were contributed, and the sale of a logistics property in Grünheide/Mark.
Continuation of the growth path in 2021: Successfully placed convertible bond and purchases of EUR 25 million
In 2021, The Grounds has already made purchases of residential properties worth EUR 25 million in the Berlin area, thereby expanding its portfolio to 386 units and its privatisation portfolio to 96 units. The Grounds financed the purchases with, inter alia, a significantly oversubscribed convertible bond with a volume of EUR 12 million, which was placed in February 2021.
“In future, we wish to focus more strongly on the capital market and raise the profile of The Grounds. To this end, the convertible bond was a first important milestone. And in future we will also be present more often at investor conferences. We kicked off at the Frankfurt Spring 2021 Conference and the Quirin Champions Conference, where we were able to convince investors with our growth story and received very positive feedback,” comments Board Member Arndt Krienen on the increased investor relations activities of The Grounds and adds: “In order to further increase our transparency and to be able to address additional investor groups, promotion of our share will start with the publication of the annual accounts of 2020. We are pleased to be accompanied in future by Quirin Bank and SMC Research, two renowned analytics firms, in order to further expand our presence on the capital market.”
“We are very satisfied with current developments. We have succeeded in making very interesting purchases in Berlin’s affluent suburbs– which we will continue to do. Equally significant is that we have been able to engage a team of excellent colleagues, who are capable of realising our ambitious goals. This is at least as important as the significant increases in 2020 and the positive forecasts for the further future”, adds Board Member Jacopo Mingazzini.
Further growth in turnover and earnings in 2021 and subsequent years
On the assumption that contribution to revenue and earnings from the debtor warrant resulting from the sale of the logistics property will not take effect until 2022, the Management Board expects consolidated revenue of EUR 23 million and EBIT of around EUR 6 million for 2021.
This means further increases in turnover and key earnings figures in all operating areas, if the special effects from the sale of the logistics property are excluded from the fixed assets.
The annual report for the financial year 2020 is now available for downloading from https://www.thegroundsag.com/geschäftsberichte.html.
The Grounds Real Estate Development AG
Arndt Krienen/Jacopo Mingazzini, Board Members
Charlottenstrasse 79-80, 10117 Berlin, Germany
Tel.: +49 (0) 30 2021 6866
Fax: +49 (0) 30 2021 6849
About The Grounds
The Grounds Group realises housing projects in German metropolitan regions. In addition, The Grounds Group holds a steadily growing residential portfolio as fixed assets. The Grounds Real Estate Development AG is listed in the Düsseldorf Stock Exchange’s OTC segment Primärmarkt (ISIN: DE000A2GSVV5), has its seat in Berlin and an office in Stuttgart.