The Grounds quadruples Group sales and significantly increases half-year earnings
- Group sales more than quadrupled to EUR 21.4 million compared to previous year
- Group EBIT rises by around 81% to EUR 2.9 million (H1 2021: EUR 1.6 million); consolidated profit after tax of EUR 1.5 million (H1 2021: EUR 0.0 million)
- Successful sales and growing rental incomes characterise sales performance
Berlin, 23.09.2022 – The Grounds Real Estate Development AG (The Grounds / ISIN: DE000A2GSVV5) developed successfully in the first half of 2022 and significantly increased its earnings. This was based on growth in Group sales, which at EUR 21.4 million were more than four times higher than in the comparison period of the previous year (EUR 4.9 million).
The main drivers of revenue development were firstly the successful sales in the land and portfolio development area, especially the forward sale of the “Terra Homes” project development in Erkner near Berlin and the complete sale of all residential units in the “Property Garden” project in Magdeburg. Secondly, rental income increased to EUR 0.9 million (H1 2021: EUR 0.7 million) as a result of further expansion of the existing portfolio.
Consolidated EBIT in the reporting period increased by EUR 1.3 million, or just over 81%, to EUR 2.9 million. After taxes, consolidated profit for the first half of 2022 was EUR 1.5 million (H1 2021: EUR 0.0 million).
The slight reduction in the consolidated balance sheet total as at 30 June 2022 to EUR 98.4 million (31 December 2021: EUR 102.9 million) is due mainly to the fact that the transfer of benefits and encumbrances for properties acquired for fixed assets in the reporting period - except for a residential complex in Fehrbellin - will take place only after the reporting date. Thus these transactions will be recognised in the balance sheet only in the second half of 2022, whereas for the aforementioned sales this was already the case in the reporting period.
Management Board confirms turnover and earnings forecast for 2022
In view of the successful business development in the first half-year, the Executive Board confirms its forecast for the full year 2022. Arndt Krienen, Management Board member of The Grounds, says: “The development of the first six months, as well as the first weeks of the second half-year, strengthen our assumption that the operational development of The Grounds will also proceed as planned in the remaining months of the year. Currently, we have already notarised further sales from the portfolio development with a volume of EUR 5.1 million, which are expected to affect turnover and earnings before the year-end, and building progress of our project developments under construction is also on schedule. Therefore, we still expect to achieve consolidated turnover in the range of EUR 35 million to EUR 38 million for the full year. Achievement of the EBIT forecast in the range EUR 8.0 to 9.0 million also depends partly on the development of our portfolio's value, where we only recorded minor changes as of the reporting date, 30 June 2022. The continuous increase in potential rents for our properties in Berlin's environs contrasts with a development of the overall market that is difficult to assess.”
Jacopo Mingazzini, Management Board of The Grounds, adds: “In particular, our strong focus on the Berlin area is proving to be advantageous in the current market environment. This region is increasingly developing its own appeal, which means that positive value development can be expected in the long term, beyond any short-term market fluctuations.”
The Grounds Real Estate Development AG
Arndt Krienen/Jacopo Mingazzini, Management Board
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.