The Grounds successfully closes the 2021 financial year, and again increases consolidated EBIT and Group earnings
- Consolidated sales revenues of EUR 31.6 million at previous year’s level
- EBIT increases considerably by 50% to EUR 9.2 million
- Consolidated profits amounting to EUR 5.1 million
- Balance sheet total exceeds the EUR 100 million mark for the first time
Berlin, 13.04.2022 – The Grounds Real Estate Development AG (The Grounds / ISIN: DE000A2GSVV5) successfully closed the 2021 financial year with consolidated sales revenues of EUR 31.6 million (previous year: EUR 31.3 million) and a consolidated EBIT (Earnings Before Interest and Taxes) considerably increased to EUR 9.2 million (previous year: EUR 6.1 million), thereby surpassing each of the 2021 annual forecast values by more than a third. Consolidated profits after taxes rose to EUR 5.1 million (previous year: EUR 4.0 million), equivalent to an earnings-per-share increase to EUR 0.29 (previous year: EUR 0.22).
The sale of a 51% majority shareholding in the BördeBogen project in Magdeburg contributed decisively to exceeding the forecast. Corresponding contributions to sales revenues and earnings also yielded value development of the fixed assets portfolio, revenue recognition following construction progress in property developments, and sales revenues from development of the existing portfolio.
Continuation of the growth course in 2021: Successful capital market debut through issuing and increasing a convertible bond, and purchased acquisitions amounting to EUR 25 million
Funds from the convertible bond successfully issued in February 2021 and subsequently topped-up were used to further expand the real estate portfolio in fixed assets and inventories. In total in the 2021 financial year, 148 units were acquired for the existing portfolio and 28 units for portfolio development with the intention to sell within the framework of a single sale. The investment volume amounted to EUR 25 million. The allowed the existing portfolio to more than double, at EUR 31.1 million (previous year: EUR 14.0 million), and real estate in the inventory assets to be increased by around 18% to EUR 38.0 million (previous year: EUR 32.2 million). Simultaneously, the consolidated Group balance sheet total rose to more than EUR 100 million for the first time (previous year: EUR 87.4 million).
Further sales revenue growth in 2022 and in the following years
Sales of residential units in portfolio development and also in the land developments are progressing according to plan. Thus the sales level for the projects in Berlin-Pankow and Meppen are already considerably above 50%, and the project in Dallgow-Döberitz also already shows a sales level of 21% after marketing started in September 2021. All of the total of 245 residential units except one in the LennéQuartier and Property Garden land developments in Magdeburg are also already notarised and sold. It was also possible to sell the Terra Homes project in Erkner to an institutional investor in the context of a forward sale in March 2022. For the current 2022 financial year, The Grounds expects sales revenues of between EUR 35.0 and 38.0 million, associated with an EBIT between EUR 8.0 million and EUR 9.0 million. The forecast does not include additional potential earnings of up to EUR 9.75 million from the debtor warrant of the logistics property sold in late 2020. If 2022 sees the drawing up of a development plan, which is a prerequisite for realising the debtor warrant, sales revenues and the EBIT would once again increase significantly.
The Annual Report for the 2021 financial year is now available for immediate download here.
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.