| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 28.59 | 233 |
| Intrinsic value (DCF) | 3.79 | -56 |
| Graham-Dodd Method | 12.07 | 41 |
| Graham Formula | n/a |
Instone Real Estate Group SE (INS.DE) is a leading German residential real estate developer headquartered in Essen. Specializing in high-quality residential properties, the company focuses on urban development projects, including apartment complexes, subsidized housing, and the renovation of historic buildings. With a portfolio of 54 development projects as of December 2021, Instone serves a diverse clientele, including owner-occupiers, private investors, and institutional investors. Operating in Germany's robust real estate market, Instone benefits from strong urbanization trends and housing demand. The company’s expertise in modern city district design and listed building refurbishment positions it as a key player in sustainable urban development. Listed on the Deutsche Börse (XETRA), Instone Real Estate Group SE combines local market knowledge with scalable development capabilities, making it a significant entity in Europe’s real estate sector.
Instone Real Estate Group SE presents a mixed investment profile. The company operates in Germany’s resilient residential real estate market, benefiting from urbanization and housing shortages. With a market cap of ~€390M and a beta of 1.504, the stock exhibits higher volatility but offers growth potential in a recovering real estate sector. Revenue of €434.6M (FY 2024) and net income of €31.2M reflect operational stability, while strong operating cash flow (€102.5M) supports liquidity. However, high total debt (€522.8M) and exposure to cyclical real estate risks warrant caution. The dividend yield (~1.5% based on €0.33/share) is modest. Investors should weigh Germany’s regulatory environment and interest rate sensitivity against Instone’s project pipeline and urban development expertise.
Instone Real Estate Group SE competes in Germany’s fragmented residential development market, differentiating itself through a focus on urban projects and historic renovations. Its competitive advantage lies in localized expertise, a diversified project portfolio (including subsidized housing), and strong institutional investor relationships. However, the company faces intense competition from larger developers with greater capital access and international reach. Instone’s mid-market positioning allows agility in project execution but limits economies of scale compared to industry giants. The firm’s reliance on the German market exposes it to regional economic fluctuations, though this also ensures deep market familiarity. Key strengths include a €262.2M cash position for project financing and a reputation for quality, but high leverage (debt-to-equity concerns) and dependence on housing demand cycles are notable risks. Competitors often outperform in commercial real estate or pan-European diversification, where Instone has limited presence.