ESSEN (dpa-AFX) - Real estate developer Instone Real Estate Group felt the effects of customer reticence last year due to rising interest rates. 2022 adjusted sales fell by around a fifth year-on-year to 621 million euros, the SDax group announced in Essen on Thursday. Supply bottlenecks for key construction materials as a result of the Covid 19 pandemic and the war in Ukraine and the subsequent rise in energy costs were accompanied by a sharp increase in material costs and thus construction costs, it added.

Adjusted earnings before interest and taxes (Ebit) fell to 88.6 million euros last year from just under 156 million euros the year before. Below the line, adjusted earnings after taxes shrank by around half to 50 million euros. The company intends to cut the dividend to 35 cents. For the current year, the company is targeting adjusted sales of 600 to 700 million euros and adjusted earnings after taxes of 40 to 50 million euros./mne/tih