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29.04.2024 08:00:43 - dpa-AFX: EQS-News: The Grounds ends 2023 with a decline in sales revenues and negative consolidated earnings - positive outlook for financial year 2024 (english)
The Grounds ends 2023 with a decline in sales revenues and negative
consolidated earnings - positive outlook for financial year 2024
EQS-News: The Grounds Real Estate Development AG / Key word(s): Annual
Results/Forecast
The Grounds ends 2023 with a decline in sales revenues and negative
consolidated earnings - positive outlook for financial year 2024
29.04.2024 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
The Grounds ends 2023 with a decline in sales revenues and negative
consolidated earnings - positive outlook for financial year 2024
Berlin, 29 April 2024 - The business performance of The Grounds Real Estate
Development AG (The Grounds / ISIN: DE000A2GSVV5) during 2023 was
characterised by declining sales revenues in a challenging market
environment. At around EUR 23.9 million, consolidated sales revenues in the
reporting year were around EUR 12.9 million, or 35%, lower than in the
previous year, in which sales totalled EUR 36.8 million. However, a
significant portion of the EUR 4.9 million decline in sales revenues is
attributable to a single event, the cancellation of the contract concluded
in 2022 for the sale of the Terra Homes project. This was carried out by
mutual agreement at the end of December 2023 at the buyer's request.
Overall, The Grounds was unable to escape the general market trend in
Germany during 2023, which was characterised by strong reluctance on the
part of institutional and private buyers. This was reflected in massive
declines in transaction volumes in almost all property market segments.
The majority of The Grounds' consolidated sales revenues totalling EUR 19.1
million resulted from construction progress of the development projects,
which is accounted for using the percentage-of-completion method.
Specifically, this related to the "Maggie" project in Berlin-Lichtenberg and
the "LennéQuartier" and "Property Garden" projects in Magdeburg. The two
other sources of revenue, privatisation and letting, contributed EUR 2.3
million and EUR 2.0 million respectively to consolidated sales revenues.
Other factors that reduced earnings were impairment losses on investment
property, totalling around EUR 1.3 million, and other operating expenses,
which include risk provisions for a company investment accounted for using
the equity method that was sold after the reporting date - the end of
January 2024.
Ultimately, EBIT in 2023 totalled EUR -4.8 million, compared to EBIT of EUR
3.4 million in the previous year. Consolidated earnings after taxes totalled
EUR -7.6 million (previous year: EUR 1.3 million). This corresponds to
earnings per share of EUR -0.39 (previous year: EUR 0.07).
In a year-on-year comparison, the Grounds' total assets increased by around
EUR 9 million to EUR 147.8 million, although this was also linked to changes
in the balance sheet structure. Non-current assets remained almost unchanged
at EUR 43.4 million (previous year: EUR 43.2 million). Impairment losses on
investment property totalling EUR 1.0 million were offset by an increase in
deferred income tax assets of EUR 1.4 million. The increase in current
assets by EUR 9.3 million to EUR 104.4 million is mainly due to the increase
in inventories by EUR 8.6 million to EUR 91.5 million. The majority of the
increase is attributable to properties under construction, which together
with work in progress, properties ready for sale and prepayments made,
comprise the inventories. The company's cash and cash equivalents totalled
EUR 3.0 million as at the balance sheet date on 31 December 2023, and were
therefore around EUR 0.7 million higher than at the end of the previous
year.
Financial liabilities and bonds increased by EUR 19.8 million, in particular
due to the expansion-related increase in liabilities to banks and the
financing provided by H.I.G. in the amount of EUR 10.0 million. The increase
in current liabilities with a simultaneous decrease in non-current
liabilities is partly due to the fact that the liabilities from the
convertible bond in the amount of EUR 16.8 million were reclassified from
non-current to current liabilities. This item also includes the financing of
EUR 10.0 million concluded with H.I.G. in the fourth quarter of 2023.
Commenting on the 2023 Annual Financial Statements, Jacopo Mingazzini,
Management Board of The Grounds, says: "Our expectations at the beginning of
2023 were not fulfilled in a market environment characterised by rising
interest rates, high construction prices and considerable uncertainty.
Nevertheless, there were some positive developments that will continue to
strengthen in the current financial year and should then lead to a
significant improvement in sales and earnings again. Our owner-occupied
residential units in Meppen have now been completely sold, the purchase
agreement for the last available flat in our new construction and
re-densification project in Margaretenstrasse in Berlin-Lichtenberg was
notarised a few days ago, and there were also increased sales in
Dallgow-Döberitz. On the other hand, there were delays in promising
negotiations for the sale of an office project and the postponement of the
realisation of the debtor warrant in connection with a sold property in
Hangelsberg. We were particularly pleased that we were able to gain a new
investor in the shape of the UK's H.I.G. Realty, which not only provided
short-term bridge financing but also secured an option to acquire a majority
stake in the company via a capital increase. This gives The Grounds a solid
starting point for the 2024 financial year, the first weeks of which have
already seen a significant improvement in the market environment."
The Management Board expects that The Grounds 2024 will again be able to
match the success of 2022 and generate sales revenues of between EUR 48
million and EUR 52 million and a balanced Group EBIT. The sales of the Börde
Bogen neighbourhood development in Magdeburg and the terraced house project
in Erkner are key to achieving these targets. In addition, The Grounds plans
to generate initial sales revenues from the sale of owner-occupied
residential units from properties in the Berlin area.
The Annual Report for the 2023 financial year is now available for download
at
https://www.thegroundsag.com/en/investor-relation/financial-reports-and-presentations/annual-reports/
Company contact:
The Grounds Real Estate Development AG
Jacopo Mingazzini, Management Board
Charlottenstrasse 79 - 80, 10117 Berlin, Germany
Tel.: +49 (0) 30 2021 6866
Fax: +49 (0) 30 2021 6849
E-mail: info@tgd.ag
Web: www.thegroundsag.com
Investor Relations:
UBJ. GmbH
Ingo Janssen, Managing Director
Haus der Wirtschaft, Kapstadtring 10
22297 Hamburg, Germany
Tel.: +49 (0) 40 6378 5410
E-mail: ir@ubj.de
Web: www.ubj.de
Press contact:
RUECKERCONSULT GmbH
Peter Dietze-Felberg
Wallstrasse 16
10179 Berlin, Germany
Tel.: +49 (0) 30 284 49 87 62
E-mail: dietze@rueckerconsult.de
Web: www.rueckerconsult.de
About The Grounds
The Grounds Group implements residential projects in German metropolitan
regions. The Grounds Group also holds a steadily-growing residential
portfolio in its fixed assets. The Grounds Real Estate Development AG is
listed in the upper free market segment of Düsseldorf Stock Exchange's
primary market (ISIN: DE000A2GSVV5), and has its headquarters in Berlin and
an office in Stuttgart.
---------------------------------------------------------------------------
29.04.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
End of News EQS News Service
---------------------------------------------------------------------------
1890887 29.04.2024 CET/CEST
consolidated earnings - positive outlook for financial year 2024
EQS-News: The Grounds Real Estate Development AG / Key word(s): Annual
Results/Forecast
The Grounds ends 2023 with a decline in sales revenues and negative
consolidated earnings - positive outlook for financial year 2024
29.04.2024 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
The Grounds ends 2023 with a decline in sales revenues and negative
consolidated earnings - positive outlook for financial year 2024
* Consolidated sales revenues reduced to EUR 23.9 million (previous year:
EUR 36.8 million)
* Consolidated EBIT declines to EUR -4.8 million (previous year: EUR 3.4
million)
* Consolidated balance sheet total increases by around EUR 9.0 million to
EUR 147.8 million (previous year: EUR 138.3 million)
* Planning for 2024 assumes significantly higher sales and balanced Group
EBIT
Berlin, 29 April 2024 - The business performance of The Grounds Real Estate
Development AG (The Grounds / ISIN: DE000A2GSVV5) during 2023 was
characterised by declining sales revenues in a challenging market
environment. At around EUR 23.9 million, consolidated sales revenues in the
reporting year were around EUR 12.9 million, or 35%, lower than in the
previous year, in which sales totalled EUR 36.8 million. However, a
significant portion of the EUR 4.9 million decline in sales revenues is
attributable to a single event, the cancellation of the contract concluded
in 2022 for the sale of the Terra Homes project. This was carried out by
mutual agreement at the end of December 2023 at the buyer's request.
Overall, The Grounds was unable to escape the general market trend in
Germany during 2023, which was characterised by strong reluctance on the
part of institutional and private buyers. This was reflected in massive
declines in transaction volumes in almost all property market segments.
The majority of The Grounds' consolidated sales revenues totalling EUR 19.1
million resulted from construction progress of the development projects,
which is accounted for using the percentage-of-completion method.
Specifically, this related to the "Maggie" project in Berlin-Lichtenberg and
the "LennéQuartier" and "Property Garden" projects in Magdeburg. The two
other sources of revenue, privatisation and letting, contributed EUR 2.3
million and EUR 2.0 million respectively to consolidated sales revenues.
Other factors that reduced earnings were impairment losses on investment
property, totalling around EUR 1.3 million, and other operating expenses,
which include risk provisions for a company investment accounted for using
the equity method that was sold after the reporting date - the end of
January 2024.
Ultimately, EBIT in 2023 totalled EUR -4.8 million, compared to EBIT of EUR
3.4 million in the previous year. Consolidated earnings after taxes totalled
EUR -7.6 million (previous year: EUR 1.3 million). This corresponds to
earnings per share of EUR -0.39 (previous year: EUR 0.07).
In a year-on-year comparison, the Grounds' total assets increased by around
EUR 9 million to EUR 147.8 million, although this was also linked to changes
in the balance sheet structure. Non-current assets remained almost unchanged
at EUR 43.4 million (previous year: EUR 43.2 million). Impairment losses on
investment property totalling EUR 1.0 million were offset by an increase in
deferred income tax assets of EUR 1.4 million. The increase in current
assets by EUR 9.3 million to EUR 104.4 million is mainly due to the increase
in inventories by EUR 8.6 million to EUR 91.5 million. The majority of the
increase is attributable to properties under construction, which together
with work in progress, properties ready for sale and prepayments made,
comprise the inventories. The company's cash and cash equivalents totalled
EUR 3.0 million as at the balance sheet date on 31 December 2023, and were
therefore around EUR 0.7 million higher than at the end of the previous
year.
Financial liabilities and bonds increased by EUR 19.8 million, in particular
due to the expansion-related increase in liabilities to banks and the
financing provided by H.I.G. in the amount of EUR 10.0 million. The increase
in current liabilities with a simultaneous decrease in non-current
liabilities is partly due to the fact that the liabilities from the
convertible bond in the amount of EUR 16.8 million were reclassified from
non-current to current liabilities. This item also includes the financing of
EUR 10.0 million concluded with H.I.G. in the fourth quarter of 2023.
Commenting on the 2023 Annual Financial Statements, Jacopo Mingazzini,
Management Board of The Grounds, says: "Our expectations at the beginning of
2023 were not fulfilled in a market environment characterised by rising
interest rates, high construction prices and considerable uncertainty.
Nevertheless, there were some positive developments that will continue to
strengthen in the current financial year and should then lead to a
significant improvement in sales and earnings again. Our owner-occupied
residential units in Meppen have now been completely sold, the purchase
agreement for the last available flat in our new construction and
re-densification project in Margaretenstrasse in Berlin-Lichtenberg was
notarised a few days ago, and there were also increased sales in
Dallgow-Döberitz. On the other hand, there were delays in promising
negotiations for the sale of an office project and the postponement of the
realisation of the debtor warrant in connection with a sold property in
Hangelsberg. We were particularly pleased that we were able to gain a new
investor in the shape of the UK's H.I.G. Realty, which not only provided
short-term bridge financing but also secured an option to acquire a majority
stake in the company via a capital increase. This gives The Grounds a solid
starting point for the 2024 financial year, the first weeks of which have
already seen a significant improvement in the market environment."
The Management Board expects that The Grounds 2024 will again be able to
match the success of 2022 and generate sales revenues of between EUR 48
million and EUR 52 million and a balanced Group EBIT. The sales of the Börde
Bogen neighbourhood development in Magdeburg and the terraced house project
in Erkner are key to achieving these targets. In addition, The Grounds plans
to generate initial sales revenues from the sale of owner-occupied
residential units from properties in the Berlin area.
The Annual Report for the 2023 financial year is now available for download
at
https://www.thegroundsag.com/en/investor-relation/financial-reports-and-presentations/annual-reports/
Company contact:
The Grounds Real Estate Development AG
Jacopo Mingazzini, Management Board
Charlottenstrasse 79 - 80, 10117 Berlin, Germany
Tel.: +49 (0) 30 2021 6866
Fax: +49 (0) 30 2021 6849
E-mail: info@tgd.ag
Web: www.thegroundsag.com
Investor Relations:
UBJ. GmbH
Ingo Janssen, Managing Director
Haus der Wirtschaft, Kapstadtring 10
22297 Hamburg, Germany
Tel.: +49 (0) 40 6378 5410
E-mail: ir@ubj.de
Web: www.ubj.de
Press contact:
RUECKERCONSULT GmbH
Peter Dietze-Felberg
Wallstrasse 16
10179 Berlin, Germany
Tel.: +49 (0) 30 284 49 87 62
E-mail: dietze@rueckerconsult.de
Web: www.rueckerconsult.de
About The Grounds
The Grounds Group implements residential projects in German metropolitan
regions. The Grounds Group also holds a steadily-growing residential
portfolio in its fixed assets. The Grounds Real Estate Development AG is
listed in the upper free market segment of Düsseldorf Stock Exchange's
primary market (ISIN: DE000A2GSVV5), and has its headquarters in Berlin and
an office in Stuttgart.
---------------------------------------------------------------------------
29.04.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
Language: English
Company: The Grounds Real Estate Development AG
Charlottenstraße 79-80
10117 Berlin
Germany
Phone: 030 2021 6866
Fax: 030 2021 6489
E-mail: info@tgd.ag
Internet: www.thegroundsag.com
ISIN: DE000A2GSVV5, DE000A3H3FH2,
WKN: A2GSVV, A3H3FH,
Listed: Regulated Unofficial Market in Berlin, Dusseldorf
(Primärmarkt), Frankfurt, Munich, Stuttgart, Tradegate
Exchange
EQS News ID: 1890887
End of News EQS News Service
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1890887 29.04.2024 CET/CEST
| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
GROUNDS R.EST. NA O.N. | A2GSVV | Frankfurt | 0,690 | 14.05.24 09:02:33 | -0,005 | -0,72% | 0,000 | 0,000 | 0,690 | 0,690 |
