Engel & Völkers Digital Invest: Dynamic growth in the first half of the year – earnings forecast for 2022 significantly above analysts' estimates
- Financing volume increases in the first half of 2022 compared to the same period of the previous year by 53 % to around 25.6 million euros
- Total operating income increases by 47 % to more than 2.6 million euros compared to the same period of the previous year
- Outlook: Management Board confirms growth forecast and expects adjusted EBIT for the full year 2022 to be significantly above current analyst estimates
Berlin, 2 August 2022. EV Digital Invest AG (ISIN: DE000A3DD6W5, hereinafter referred to as the “Company” or, “Engel & Völkers Digital Invest”), operator of the online real estate investment platform "Engel & Völkers Digital Invest", looks back on a successful first half of 2022. The Company financed projects with an investment volume of around 25.6 million euros - a significant growth of 53 % compared to the same period of the previous year. According to preliminary figures, total operating income rose by around 47 % in the first six months compared to the same period of the previous year, reaching around 2.6 million euros.
Marc Laubenheimer, Co-CEO: “The first half of 2022 has been extremely good for us. We were able to achieve attractive double-digit growth rates. In the current market environment, we are operating very selectively in the interest of our investors – quality has priority over growth. In addition to economies of scale, the general rise of the interest rate environment had also a very positive impact on our margins. With this strategy, we remain fully on track to achieve mid-double-digit revenue growth rates and an EBITDA margin of 20 % in the medium to long term.”
On this basis, the Management Board confirms the expectation communicated before the IPO that total revenues will develop at mid-double-digit growth rates in the medium to long run. For the 2022 financial year, growth is expected to be at the lower end of this indication despite the challenging market environment due to the overall economic situation.
Positive outlook in a challenging market environment
In line with the general shift of investor preferences in recent months, the Management Board has adjusted the Company's growth strategy. Among other things, the start of the Ukraine war resulted in a weaker overall economic development. Whereas before, the focus was on maximizing possible growth, the primary objective in the short to medium term will now be cost-efficient and more risk-averse growth. Against this backdrop and on the basis of the half-year figures, the Company expects a significantly lower increase in costs for the full year 2022 – in particular for personnel costs, marketing expenses as well as service provider and third-party costs.
Overall, Engel & Völkers Digital Invest expects total operative expenses (total expenses reduced by costs and special one-off effects of the IPO) of around 7.4 million euros for the full year. This is approximately 3.2 million euros lower compared to the currently existing analyst estimate. As a result of the more restrictive spending policy, the Company is also assuming somewhat more conservative growth in revenues and expects total operating income in the range of 5.5 to 6.0 million euros for 2022. EBIT adjusted for the costs and special effects of the IPO is expected to be around -1.7 million euros in the full year 2022, according to the current estimate, and would therefore be significantly above the current market expectation.
Significant growth in investment volume
In the first half of 2022, Engel & Völkers Digital Invest financed projects with a total volume of around 25.6 million euros. The average investment volume per project, which is important for economies of scale, increased to 3.7 million euros – a growth of 31 % compared to the first half of 2021. Particularly noteworthy is the “Stadthaus ‘Mozart’ II” project with a volume of 6.0 million euros – the largest financing volume financed via the platform to date. Accordingly, fee income per financing was also increased by around 26 %.
The Company's growth is based on a sound project pipeline, which leads to an expected sustained positive development in the second half of 2022 – despite the more challenging market environment due to the overall economic situation. In July, for example, the office property “Office am Europaring II” in Ratingen near Düsseldorf with an investment volume of 3 million euros and the residential project “Atelier-Wohnungen an der Burg II” in Munich with an investment volume of around 2.2 million euros were fully placed. In addition, an investment volume of over 5 million euros has already been raised for the logistics project “DFI Zukunftspark Oberrhein”. Further projects are in preparation and will be made available to the crowd on the investment platform in the near future.
Tobias Barten, Co-CEO: “We are experiencing high demand from project developers, also because banks have increased their equity requirements again and we have proven to be a reliable partner with our platform. Our pipeline of real estate projects is well stocked. Nevertheless, we are maintaining our strict due diligence. There will be no project on our platform that we are not convinced will be successful. The fact that this principle works exceptionally well is demonstrated not least by the fact that we have not had to accept a default on any of our financed projects to date.“
The full 2022 half-year report will be published in October 2022.
About EV Digital Invest AG
The fast-growing digital investment platform for real estate "Engel & Völkers Digital Invest" offers private investors the opportunity to participate in selected real estate projects as co-investors. As the quality-leading platform in the field of digital real estate investment and financing, and as a registered license partner of Engel & Völkers, it enjoys exceptionally high brand recognition.
With many years of industry expertise, extensive due diligence and high quality standards, a financing volume of more than EUR 170 million has been achieved so far without project defaults. A loyal and well-capitalized investor base with currently more than 13,000 users enables project financing within short financing periods. Market share is to be significantly expanded with a growth and quality-focused business strategy.
Furter information: www.ev-digitalinvest.de
ENGEL & VÖLKERS DIGITAL INVEST
EV Digital Invest AG
Licensed partner of Engel & Völkers Marken GmbH & Co. KG
Joachimsthaler Str. 12
Kirchhoff Consult, Jan Hutterer
Borselstraße 20, 22765 Hamburg
Phone: +49 40 60 91 86 65
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