In H118 CONSUS Commercial Property AG (DE:CC11) completed its transformation into a pure-play, residential real estate developer focused on the forward sale operating model. It keeps a stable share of forward sold investments within its portfolio at c 26%, despite expanding its gross development value (GDV) by 37.4% ytd to €6.2bn. The company has implemented IFRS 15 into its accounting policies to better reflect recognition of income from property development. Ability to deliver results in line with the expected significant bottom line improvement is crucial for the company’s future market valuation, which has been volatile in recent months.
H118 results: Growth driven by property development
Recent changes to group structure make it difficult to conduct a y-o-y results comparison. Consus reported an overall performance of €242.2m (see Exhibit 1), driven in particular by development income from VauVau projects in Cologne, Dresden and Leipzig. The adoption of IFRS 15 added €23.5m to both top-line and net earnings. Further improvements should be assisted by the recent DIPLAN acquisition, as digitalisation of the planning and construction process will result in significant cost savings and reduced development timeframes.
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