Instone cuts 2026 outlook as revenue falls to €288.1 million
Key Facts
Instone Real Estate Group management said on October 29 that its stated targets for fiscal 2026 were unlikely to be met, in a revision reflecting declines in revenue, earnings and sales during the first nine months of the year. The company attributed this to higher interest rates in the third quarter and continued economic and political uncertainty, which affected investors’ willingness to complete transactions more than it had expected. It said the impact affected both private and institutional investors, with higher rates particularly hurting demand from private investors. The disclosure concerns Instone’s performance and outlook and does not indicate the results of other property developers. The revision follows the company’s expectation in March that demand would recover during 2026 and earnings growth would resume in subsequent years.
Revenue in the first three quarters came to €288.1 million, compared with €347.5 million in the same period a year earlier. Adjusted after-tax profit also fell to €12.2 million from €21.4 million a year earlier. Sales volume was €173.3 million, excluding institutional deals the company had expected to complete in the fourth quarter of 2026, compared with €229.0 million in the corresponding period of 2025. The comparisons reflect weaker performance than a year earlier in revenue, earnings and sales, while the anticipated institutional deals were not completed within the planned period. The disclosure did not provide a separate explanation for each change in these indicators.
Instone said higher interest rates during the third quarter, alongside economic and political uncertainty, curbed investors’ willingness to complete transactions more than expected. It added that the original outlook assumption that the impact of the conflict in the Middle East on its business would be temporary had not materialized. The company said higher rates particularly hurt demand from private investors, while the weaker willingness to complete deals affected both private and institutional investors. The March outlook had been based on a recovery in demand in 2026, Chief Executive Kruno Krepulia said at the time. The October revision shows that the company no longer expects to meet its previously announced 2026 targets.
Management expects slower buyer decisions to defer some deals to the following fiscal year. The company said it had already received letters of intent to sign institutional deals in the first quarter of 2027, although completion had originally been planned during 2026. The delay puts some anticipated transactions outside the year covered by the revised outlook, while signing remains targeted for a later date. Management maintained its plan to distribute a dividend of €0.43 per share for fiscal 2026. The company is scheduled to publish its full third-quarter financial report on November 5, 2026.