Instone Real Estate Group AG

Investor Presentation • Aug 7, 2025

Instone Real Estate Group SE

Investor Presentation August 2025

Agenda

Key Investment Highlights

Instone is a Leading Residential Developer in Germany Instone at a Glance Proven track record of >30 years

• Leading homebuilding developing platform in Germany
• Addressing fundamental structural undersupply in German real estate market
• Comprehensive product portfolio from custom apartments and single houses in prime metropolitan areas to affordable housing units (nyoo)
• Attractive business model based on covering entire real estate development value chain, from land acquisition to sales

Investment highlights

Covering the entire value chain with deeply rooted construction expertise

Q2 2025 Highlights

Q2 highlights & outlook

Strong sales momentum in B2C business persists; first institutional deal signed in Q3

• Continued strong demand from private investors; promising first institutional sale in Q3
  • Retail: Strong demand from private investors (+58% yoy) fueled by attractive tax incentives; sales starts key growth driver
  • Institutional: first medium-sized deal signed in July; in talks with investors for several additional transactions

Acquisitions: Five projects with GDV of €350m signed or close to signing; additional extensive deal pipeline Early extension of the management contracts of Kruno Crepulja (CEO) and Andreas Gräf (COO) Operational Highlights

H1-2025 results: Strong profitability maintained

Operational Highlights
	H1-2025 results: Strong profitability maintained
H1-2025 Results1	 Revenues: €231.0m (-9.6% yoy)  Gross profit margin: 25.3% (H1-2024: 25.7%)  EAT: €17.2m (-16.1% yoy)  Sales: €96.3m (-21% yoy - H1-24 included an institutional sale)larger institutional deal

Outlook for 2025 reiterated

• Outlook1
• Revenues: €500-600m
• Gross profit margin: ~23%
• EAT: €25-35m
• Sales: >€500m

© Instone Group 9

1 Adjusted results

Retail sales: Pipeline of sales starts promises additional growth

Quarterly development of retail sales

• Continued dynamic sales recovery (private sales up from €57.5m to €90.6m in H1-2025, +58% yoy)
• New sales starts very well received by the market – Pipeline of additional sales starts promises further growth acceleration
• Sales ratio: 3.0% (31 CW), 17.75 avg. weekly number of units sold / 583 avg. number of units on offer; above LT mean
• Institutional market: 1st deal signed ytd, sale of subproject in Top 8 city; (volume c.€55m)
• In talks for several transactions signing expected in Q4-2025

© Instone Group 10 1 Retail sales ratio = weekly number of units sold/total number of units on offer (four week moving average)

Sales starts ytd: Boost in demand due to attractive post tax-returns

INS new products are ideally tailored to the support schemes of the Growth Opportunities Act ("Wachstumchancengesetz") with 5% degressive tax depreciation + 5% linear tax depreciation for energy efficient buildings ("QNG 40" standard) allowing for highly attractive post tax-returns

Further sales starts catered to buy-to-let investors planned for the coming months

© Instone Group * As of 31 July 2025 11

Prices on upward trend; dynamic rent growth persists

House price inflation (new builds)1

Prices continue moderate upward trend in Q2 in volatile overall environment

• Rent growth remains at elevated levels due to further rising scarcity for energy efficient apartments in good quality locations
• Property yields continue to move up

Moderate CPI growth – INS with unrivalled low construction costs

Construction price inflation1

• Overall construction price inflation rather stable at moderate levels
• CPI for larger projects is lower due to rising competition leading to costs remaining largely stable for Instone 1 Statistisches Bundesamt (Federal Statistical Office)

Projects under construction de-risked with 92% sold

- Projects with GDV of c.€2.5bn are "under construction" of which 92% already sold

• Land value >€470m + outstanding land payment c.€105m (accounting for c.14% of pre-sales GDV)

© Instone Group 14

Kategorie 1 Kategorie 2

%

Q2 2025 Financial Performance & Outlook

Adjusted Results of Operations: Solid profitability maintained

€m	Q2 2025	Q2 2024	Change	H1-2025	H1-2024	Change	1 	Lower construction output, in line with expectations – bulk of
Revenues	126.0	135.9	(7.3%)	1 231.0	255.4	(9.6%)		revenues derived from pre-sold units under construction
Project cost	(95.6)	(103.0)	(7.1%)	(172.5)	(189.8)	(9.1%)
Gross profit	30.4	32.9	(7.6%)	58.5	65.6	(10.8%)	 2	Sustained high margin level reflects quality of projects, cost
Gross Margin	24.1%	24.2%		2 25.3%	25.7%			control with inhouse construction management and prudent cost
Platform cost	(16.9)	(19.2)	(12.0%)	3 (34.6)	(36.9)	(6.2%)		assumptions - lower margin in H2 expected (as planned)
Share of results of JVs	2.4	3.8		4 5.0	4.7
EBIT	16.0	17.6	(9.1%)	28.9	33.4	(13.5%)	3 	Platform costs: slightly decreasing due to lower FTE and LTIP
EBIT Margin	12.7%	13.0%		12.5%	13.1%			provisions
Financial & other results	(2.3)	(2.5)		5 (5.0)	(5.7)
EBT	13.7	15.2	(9.9%)	23.9	27.8	(14.0%)	 4	JV result reflects positive contribution of Berlin JV
EBT Margin	10.9%	11.2%		10.3%	10.9%
Taxes	(3.9)	(4.2)		(6.7)	(7.3)		 5	Improved financial result mainly due to reduction in net debt
Tax rate	(29.0%)	27.6%		6 28.2%	26.3%			(avg. c.-€55m in H1 yoy)
EAT	9.7	10.9	(11.0%)	17.2	20.5	(16.1%)
EAT Margin	7.7%	8.0%		7.4%	8.0%		6 	Slightly higher tax rate due to lower expected earnings contribution in FY-2025 from completed Berlin JV project in 2025
EAT post minorities	9.6	11.1	(13.4%)	16.7	20.4	(17.4%)
EPS1	0.22	0.26	(13.4%)	0.39	0.47	(17.4%)

Very strong balance sheet

€m	30/06/2025	31/12/2024
Corporate debt	141.1		 LTC (loan-to-cost ratio) remains at a very low level of 12.0%
1 Project debt	287.8
1 Financial debt	428.9	389.7
1 Cash and cash equivalents and term deposits	271.2		 … and a very solid net
1 Net financial debt	157.7	132.5	debt/adjusted EBITDA of 2.8x at the trough of the revenue/earnings
Inventories and contract asset / liabilities	1,315.5		cycle
LTC1,2	12.0%	10.5%
3 Adjusted EBIT (LTM)	53.0		 Balance sheet offers ample
3 Adjusted EBITDA (LTM)	57.0		headroom for growth investments in a buyers' market for land
1 Net financial debt / adjusted EBITDA	2.8x	2.1x

Financially very strong position - Firepower for future growth

Cash Flow (€m)	Q2 2025	Q2 2024	H1 2025	H1 2024
EBITDA adj.	16.8	19.0	30.7	36.1
Other non-cash items	(12.3)	2.2	(7.9)	(3.7)
Taxes paid	(12.0)	(4.3)	(15.4)	(7.7)
Change in working capital	24.0	30.1	(5.9)	(5.4)
Operating cash flow	16.4	47.0	(0.5)	19.3
Land plot acquisition payments RETT)1 (incl.	4.8	1.1	17.5	1.8
Operating cash flow excl. investments	21.2	48.1	17.0	21.1

Very strong cash generation in 2023 & 2024 (total operating CF of approx. €210m) has created significant scope for growth investments

Ongoing positive underlying cash flow generation in H1 2025 (pre land 3 Net available project financing

Liquidity (€m)	Total	t/o drawn	t/o available
Corporate debt
Promissory notes	135.0	135.0	-
Revolving Credit Facilities	133.3	-	133.3
2 Cash and cash equivalents and term deposits			271.3
Total corporate funds available			404.6
Project debt2
2,3 Project finance	410.0	243.9	166.1

investments) further supporting scope for growth Liquidity: Significant net cash position on corporate level (c.€130m) plus c. 130m RCF generates significant financial flexibility providing Instone a major competitive advantage in market consolidation phase

• Five acquisitions (metropolitan areas of Munich, Stuttgart, Nuremberg, Leipzig) with GDV of €350m signed or close to signing
• Significant acquisition pipeline: Increase in supply of attractive acquisition opportunities in the past months leading to additional expected signings in the coming quarters 2 Q2/25 Excl. €154.1m restricted cash and €114.2m financial debt in connection with Project Westville client related subsidized KfW loan

© Instone Group ¹⁸ 1 RETT: Real Estate Transfer Tax

Financing: Strong access to debt financing in still tough markets

© Instone Group 19 1 Refinancing promissory note in 2024: repayment of €35m in 2024, €30m in 2025 and extension of €17.5m to 2026 & 2028 respectively; interest step-up from 4.0% to 4.5% in 08/2025, from 4.5% to 5.25% in 08/2026

Outlook: Full year targets confirmed

€m	Forecast 2025
Revenues (adjusted)	500-600
Gross profit margin (adjusted)	~23%
EAT (adjusted)	25-35
Volume of concluded sales contracts	>500

Market Environment

Structural supply shortage in German resi continues to widen

New-builds steadily gaining relative attractiveness

Offer prices for multi-family homes: discounts per energy efficiency category1

Further widening of price differential according to energy efficiency

• Discounts vs. reference category in % Stronger expected price drops for non-renovated existing buildings
  • Price premium for energy-certified properties continues to increase yoy (label H vs. A+ ~45% lower) — even higher for new builds
  • Investors can benefit from the strong German ESG regulation

Instone with leading position for energy efficient buildings

Source: ING Research & Savills

© Instone Group 23 1 Due to change in EU Taxonomy requirements, reporting changed vs. prev. year from project view to revenue relevant view 2 In addition to energy consumption, the EU taxonomy also takes into account other criteria such as the use of greenfield sites or water consumption

Upcoming market consolidation offers vast opportunities

Instone well positioned to exploit market opportunities

• Industry leading gross margins (c.23% in 2024)
• Low production costs vs. peers also due to strong inhouse construction expertise
• Affordable selling prices (c.3,000 €/sqm) for third party turnkey developments (incl. margin, VAT, high KfW40 energy standard)
• Robust balance sheet (LTC 12.0%), strong cash position
• Strong cash generation from projects under construction (~ EUR 190m)
• Approx. 93% of units under construction (EUR 2.5bn) are already sold
• Avg. holding period of unsold land plots > 4 years. Value creation from land development book value ps: EUR 13.39
• First project acquired in 2024 with GDV of c.€300m at a significant discount to previous price expectations due to very low competition

Larger players are abandoning the business, and many smaller players are struggling

Players with weak balance sheet and/or lower margins are suffering most

Many players bought land at peak of cycle with high financial leverage (land ready for construction without operational upside)

© Instone Group 1 43,322,575 shares as of 30/06/2024

nyoo: Growth Perspective

Mid to long-term opportunity: nyoo

Instone's nationwide platform and innovative approach for affordable housing offer opportunity to fill demand gap

First projects confirm INS's competitive edge Grafental, Düsseldorf (Flingern Nord) Land plot ~15,800 sqm Living space ~16,000 sqm Affordable housing segment — recent track record

DUS 19, Düsseldorf (Unterbach)

DUI 76, Duisburg (Buchholz)

• Land plot ~5,300 sqm
• Living space: ~5,000 sqm
• 66 units (52 publicly subsidized)
• Energy efficiency standard KfW 55

Completed in May 2023

• Land plot ~5,400 sqm
• Living space: ~6,200 sqm
• 78 units (46-125 sqm)
• Energy efficiency standard KfW 55, green roofs

- Joint project with INS Development (core product). nyoo part includes: Land plot ~5,760 sqm Living space ~12,470 sqm 167 units (49-103 sqm) High energy efficiency standard

-

• Effizienzhaus-NH-40

DUI 06, Duisburg (Wedau)

-

• 155 apartments, 26 town houses
• High energy efficiency standard Effizienzhaus-NH-40, green roofs

Unrivalled low production costs achievable PROJECT COSTS

Cost savings by standardisation ~50% of selling expenses ~50% of personnel expenses Reduction of total production cost including planning, marketing, sales etc. Around 25% cost saving potential

Optimised floor planning Standardisation of materials ~20% reduction of building costs

-

• ~50% of planning costs

Further potential

- Reducing underground construction

• Prefabrication

• Scalability potential

Considerable savings in project duration resulting in superior project IRR

Highly attractive project economics

Project related economics

Project size	€20-50m	 Standardised planning and simplified execution provides for attractive economics in smaller size projects
Target gross margin	~20%	 Projects gross margins expected to be lower compared to target margins for INS core product  Lower margin reflects reduced capital intensity, platform costs and risk profile of nyoo product
Target EBIT margin	In line with core product	 EBIT margin in line with core product  Standardised planning and more efficient / repetitive construction works allow for leaner nyoo platform costs vs INS core product
Target IRR/ ROCE	Exceeding core product	 Accelerated planning, reduced complexity, minimized underground construction as well as sales more geared towards institutions result in improved project IRR and superior ROCE

Comparison of products

	Comparison of products
	Traditional Instone Product	Instone nyoo
Price	 Mid to high price segment  €5,000/sqm–9,000/sqm	 Lower to mid-price segment (between social housing and Instone core product)  Approx. €4,000/sqm–5,000/sqm
Complexity	 Customization and optionality  Includes underground construction	 Standardisation and low optionality  Minimising underground construction
Location	 Focused on largest metropolitan areas	 Focused on well-connected B locations
Project size	 >€50m  Development of entire residential quarters; including master planning process	 >€20m  Less complex projects
Target customer	 Mid-high income owner occupiers and buy-to-let investors  Institutional investors	 Municipal housing companies  Professional landlords; less owner occupiers  Institutional investors

ESG Strategy

Driving sustainable success: how value creation is linked to sustainability in 2023) Share of projects/objects with energy requirements at least

Major ESG-KPIs achievements

• EU Taxonomy-compliant revenues: 94.7% in 2024 (up from 90%
• NZEB -10%: 100%
• GHG emissions scope 1 and 2 reduced by 62.3% from the base year 2020, in line with SBTi
• Implementation of 7 working groups with focus on ESG topics (predominantly reduction Scope 3 emissions) comprising 30 employees
• Social impact scoring model which is applied to each project
• On track with implementation of voluntary¹ CSRD/ESRS reporting

Net Zero climate neutrality by 2045

Continuous expansion of ESG governance

© Instone Group 33 1 Final EU decision regarding CSRD reporting is pending

Clear pathway to reduce GHG emissions scope 1 to 3

Scope 1 & 2 emissions: projected vs. achieved

2 Climate change mitigation scenario: based on the assumption that decarbonizing the energy sector achieves climate neutrality in 2045 ³⁴ Scope 1 and 2 emissions reduced by 62.3% in 2024 vs. base year 2020 (in line with SBTI requirements) through gradual conversion from construction sites to green electricity and replacement of company vehicles with electric vehicles

ESG: Top rating underscores commitment to industry leadership

UNIVERSE		RANK PERCENTILE (15t = lowest risk) (151 = Top Soore)
Global Universe	616/15079	5th
Real Estate INDUSTRY	147/1008	15th
Real Estate Development SUBINDUSTRY	4/275	2nd

• Instone among the top 2% of the 275 global real estate development companies, improved score vs. 2023
• Top 5% across all sectors

Major ESG-KPIs – achievements

	Major KPIs	2024	2023
	Taxonomy-compliant revenues (in %)	94.7	90.0
E	GHG emissions / scope 1 - 3 abs.	178.174 t CO2e	197,657 t CO2e
	GHG emissions / scope 1 - 2 abs.	1,001 t CO2 e	1,437 t CO2 e
S	Share of female employees in management positions (below C-level)	16.7% (1st) / 33.3% (2nd)/	20% (1st) / 28% (2nd)/
	Code of Conduct for employees and contractors (UN Charter)	100%	100%
G	Employee compliance and data protection training	100%	100%
	Compliance cases (suspected)	0	0

Neckar.Au, Rottenburg

Social Impact for the society and the newly developed quarter

- Five construction sites with around 480 apartments Reduction of sealing by converting a former commercial area into a residential area Five construction sites with around 480 apartments Reduction of sealing by converting a former commercial area into a residential area

• Extensive (roof) greening to improve the quality of stay
• Around 11,300 sqm for playgrounds and green spaces an around 420 bicycle parking spaces Use of CO2 reduced concrete Extensive (roof) greening to improve the quality of stay Around 11,300 sqm for playgrounds and green spaces an around 420 bicycle parking spaces
• Implementation of 4 residential groups with 24 places for people with mental and/or physical disabilities in cooperation with the Liebenau Foundation in cooperation with FUNKE e.V. Use of CO2 reduced concrete Highly liveable quarters with great social impact

Awards & Ratings

BEST MANAGED COMPANY AWARD 2025

The award recognises excellently managed companies with strategic vision, innovative strength, a sustainable management culture and good corporate governance.

SUSTAINALYTICS ESG RATING

Instone among the top 2% of the 275 global real estate development companies, improved score 2024 vs. 2023.

Top 5% across all sectors.

EUROPEAN REAL ESTATE BRAND AWARD 2025

Strongest Brand Germany in the category Developers Residential

2nd year running

EXTEL RATING 2025

Real Estate Sector (Developed Europe)

Country (all sectors)

1 RE Developer Europe # 1 RE Small Cap Europe # 2 RE Germany # 6 RE Europe

3 Small Caps Germany

Project portfolio key figures

€m	Q2 2025	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023
Volume of sales contracts	54.6	41.6	173.6	34.7	33.9	88.0	120.1	20.2	18.4
Project Portfolio	6,840.7	6,971.4	6,891.1	7,111.0	7,124.9	6,885.8	6,972.0	7,015.5	7,182.6
thereof already sold	2,470.5	2,796.4	2,755.0	2,675.8	2,784.8	2,781.1	2,693.4	2,822.7	2,868.8
thereof already realized revenues	2,132.0	2,385.2	2,281.8	2,231.6	2,246.3	2,140.7	2,022.5	2,089.4	2,002.2

Units	Q2 2025	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023
Volume of sales contracts	106	76	366	55	68	213	195	37	28
Project Portfolio	13,793	14,236	14,243	14,650	14,760	14,252	14,252	14,269	15,148
thereof already sold	5,555	6,264	6,188	6,074	6,448	6,430	6,217	6,588	7,017

(Unless otherwise stated, the figures are quarterly values)

Diversified project portfolio across most attractive German regions

Expected future cash flows suggest significant upside1

Pre-sold projects	(As of 30 June 2025; in €m)
 c.€2.5bn currently under construction  t/o c.€2.3bn pre-sold (92%)  In addition, c.€130m pre-construction already pre-sold	De-risked free cash flow from projects under construction1	~190m
 Tangible and substantially de-risked cash-flow profile Land bank	Unsold land bank at cost2	>470m
 Residual unsold and paid land bank recognised at cost² of >€470m  Substantial incremental value	Notional gross asset value2	>660m
Upside from construction starts and acquisitions  CF potential from new construction starts which will increase as of H2-25	Net debt	-157.6
 Ability to source new projects with very attractive future CF potential  Highly attractive acquisition opportunities likely to materialise within 6-24 months	Notional value to shareholders3	~510m

© Instone Group ⁴² 1 Free cash flow post platform cost and taxes; Incl. proportionate share of at-equity JVs 2 Note: "unsold land bank at cost" excluding unsold portion of projects under construction 3 Note: 43.32m shares issued and outstanding (excluding Treasury shares)

Growth Opportunities Act with attractive tax incentives for newbuild properties (scenario analysis)

Model assumptions		Payback of capital from tax incentives
Price /sqm	5,700 €		4 years	10 years
Lettable space	85 sqm	Total depreciation	142,658 €	218,532 €
Purchase price	484,500 €
Ancillary costs	38,760 €	Depreciation as % of total purchase price	27.3%	41.8%
Land (18% of total purchase price)	94,187 €	Tax incentive	63,212 €	96,831 €
Buidling costs	429,073 €	Tax incentive as % of total purchase price	12.1%	18.5%
Buidling costs per sqm	5,048 €	Tax incentive as % of equity	40.3%	62%
Rental yield	4%
Rental growth p.a.	2.5%
Equity ratio (30%)	156,978 €	Attractive post tax returns
Debt interest rate	3.5%	Average RoE (cash returns)	12.8%	9.5%
Income tax	44%	Tax free disposal gains after 10 years
 Tax incentives allow for fast payback of capital and highly attractive, inflation protected, post tax returns for buy-to-let investors  Tax free diposal gains after 10 years		 plus additional 5% linear depreciation over 4 years (according to § 7 EstG) if tax relevant building costs are <5,200 €/sqm and energy standard of
		QNG 40 certification is met
 Growth Opportunities Act:		 > 90% of Instone project pipeline ready for criteria	construction meets	relevant
 5% degressive depreciation on new build	properties

Payback of capital from tax incentives
	4 years	10 years
Total depreciation	142,658 €	218,532 €
Depreciation as % of total purchase price	27.3%	41.8%
Tax incentive	63,212 €	96,831 €
Tax incentive as % of total purchase price	12.1%	18.5%
Tax incentive as % of equity	40.3%	62%

Attractive post tax returns
Average RoE (cash returns)	12.8%	9.5%
Tax free disposal gains after 10 years
if tax relevant building costs are QNG 40 certification is met  > 90% of Instone project pipeline criteria	<5,200 €/sqm and energy ready for construction meets	standard of relevant

• -

© Instone Group 43

Projects > €30m sales volume, representing total: ~ €6.8bn – JVs are not included Project portfolio as of 30/06/2025

		Sales volume	Lettable space	Land plot	Planning right		Construction
Project	Location	(expected)	(sqm)	acquired	obtained	Sales start	started
Hamburg
Kösliner Weg	Norderstedt	106m €	24,539			2025
RBO	Hamburg	224m €	29,876
Büntekamp	Hanover	169m €	25,044			2026
Berlin
Nauen	Nauen	163m €	28,686			2026
NRW
Unterbach	Düsseldorf	189m €	40,229
Literaturquartier	Essen	N/A	18,178
REME	Mönchengladbach	128m €	28,315			2030
Gartenstadtquartier	Dortmund	97m €	25,514			2025
Bickendorf	Cologne	651m €	146,713			2028
6-Seen Wedau	Duisburg	87m €	16,700
Kempen	Kempen	50m €	11,103			2026
Grafental	Düsseldorf	184m €	29,905
Tußmannstraße	Düsseldorf	74m €	8,375			2026

© Instone Group 44 Note: Semi-filled circle means that the milestone has already been achieved for sections of the project (land plot acquisition, start of sales or construction). Concerning the building rights the semi-filled circle means that the zoning process has been initiated. No circle for "land plot acquired" means that the land has not yet been purchased but secured by contract

Projects > €30m sales volume, representing total: ~ €6.8bn – JVs are not included Project portfolio as of 30/06/2025

Project	Location	Sales volume (expected)	Lettable space (sqm)	Land plot acquired	Planning right obtained	Sales start	Construction started
Rhine-Main
Delkenheim	Wiesbaden	114m €	51,525
Schönhof-Viertel	Frankfurt	619m €	91,485
Friedberger Landstr.	Frankfurt	308m €	38,241			2027
Elisabethenareal	Frankfurt	85m €	9,989			2026
Steinbacher Hohl	Frankfurt	N/A	13,746
Westville	Frankfurt	N/A	101,297
Heusenstamm	Heusenstamm	174m €	39,364			2027
Kesselstädter	Maintal	234m €	38,315			2026
Polaris	Hofheim	67m €	10,215			2025
Rheinblick	Wiesbaden	318m €	51,751			2027
Eichenheege	Maintal	118m €	18,055			2028
Lahnstraße	Frankfurt	80m €	10,489
Leipzig
Parkresidenz	Leipzig	290m €	66,368
Semmelweis 9	Leipzig	69m €	24,218			2025
Rosa-Luxemburg	Leipzig	170m €	26,658			2025
Heide Süd	Halle	59m €	10,521			2026

© Instone Group ⁴⁵ Note: Semi-filled circle means that the milestone has already been achieved for sections of the project (land plot acquisition, start of sales or construction). Concerning the building rights the semi-filled circle means that the zoning process has been initiated. No circle for "land plot acquired" means that the land has not yet been purchased but secured by contract

Projects > €30m sales volume, representing total: ~ €6.8bn – JVs are not included Project portfolio as of 30/06/2025

Project	Location	Sales volume (expected)	Lettable space (sqm)	Land plot acquired	Planning right obtained	Sales start	Construction started
Baden-Wurttemberg
Rottenburg	Rottenburg	172m €	33,932
Herrenberg III, Schäferlinde	Herrenberg	80m €	13,963			2026
Herrenberg II, Zeppelinstraße	Herrenberg	89m €	14,994
Remshalden	Remshalden	55m €	8,248			2027
Schorndorf II - VS66	Schorndorf	50m €	7,610			2026
Bavaria South
Ottobrunner	Munich	100m €	10,870			2025
Unterschleißheim	Unterschleißheim	112m €	12,023			2026
Bavaria North
Eslarner Straße	Nuremberg	N/A	12,570
Lagarde	Bamberg	90m €	17,773
Boxdorf	Nuremberg	66m €	10,098
Thumenberger	Nuremberg	144m €	16,668			2025
Worzeldorf	Nuremberg	69m €	11,428			2026
Lichtenreuth	Nuremberg	87m €	11,557			2026

© Instone Group Note: Semi-filled circle means that the milestone has already been achieved for sections of the project (land plot acquisition, start of sales or construction). Concerning the building rights the semi-filled circle means that the zoning process has been initiated. No circle for "land plot acquired" means that the land has not yet been purchased but secured by contract ⁴⁶

Favourable regulatory framework leading to attractive cash

flow profile

Private Customer's Payment Profile for German residential development projects

% paid by customer % remaining to be paid by customer

German regulatory framework for customer payments compared to other European markets

• De risked: B2C development process per se low-risk via regulatory framework ("MaBV")1
• Certainty: No cancellation possibilities
• Capital-light: Predefined payment schedule limiting equity requirement from Instone
• Very favourable payment schedules vs. other European countries, particularly UK, Ireland and Spain

Significant amount of construction costs covered by customers' regular payments

Funding requirements minimized due to high pre-sales levels

Illustrative cumulative financing profile of a typical B2C Instone project

Supportive German subsidy schemes

Key positives from new subsidy scheme

	Key positives from new subsidy scheme
	The German government increases tax depreciation and invests >€1bn p.a. to support owner-occupiers (help-to-buy) and new build of rental apartments
Programme details	 Name: Social housing subsidies  Budget: €3.15bn in 2024 (€18.15bn total volume until 2027)  40% of investment born by the federal states (additionally)	 Name: Degressive Depreciation (Growth Opportunities Act)  Volume: 5% depreciation p.a.; can be combined with 5% special depreciation (§ 7 EstG) if tax relevant selling price excl. land is below €5,200 / sqm (QNG criteria must be met)	 Name: "Wohneigentum für Familien" = homes for families  Volume: €350m  Start: 16/10/2023	 Name: "Klimafreundlicher Neubau" = climate friendly new-build  Volume: €0.76bn (KFN)2  Start: 2023; Renewal: February-2024	 Name: "Klimafreundlicher Neubau im Niedrigpreissegment" = climate friendly new-build in the affordable segment  Volume: €2bn  Start: Oct-24 - Dec-25
Recipient	 Beneficiary: Housing companies, institutional and private investors  Eligibility:  New construction, extension or conversion of new living space  Modernisation of existing space  Social rental apartments or owner occupied residential properties	 Buy-to-let investors  For newly built residential properties	 Families with at least 1 child <18 years living in their household  Household income of max. €90,000 (up from €60,000 previously) plus €10,000 per child  Required to own at least 50% of the building (as only home in Germany)	 Resi landlords, other institutional or private investors	 Private investor, corporates or other investors
Objective	 Support the construction and modernisation of social housing	 Expected to have a positive impact on the return expectations  Increased willingness to pay from private buy-to-let investors (due to full tax deductibility from personal income)  Boost construction of rental apartments	 Help-to-buy: Build or buy new home/condominium for own use for the first time (for at least 10 years)  Energy efficiency:  At least energy standard KfW40 (plus additional requirements regarding GHG emissions defined in regulation "Qualitätssiegel Nachhaltiges Gebäude")  Higher subsidies possible with the additional certificate for sustainable buildings "QNG"	 New build of energy efficient buildings  Energy efficiency  At least energy standard KfW40 (plus additional requirements regarding GHG emissions defined in regulation "Qualitätssiegel Nachhaltiges Gebäude")  Higher subsidies possible with additional certificate for sustainable buildings "QNG"  Use of fossil fuels not allowed	 Increase supply in the affordable rental segment (space efficient and climate friendly)  Energy efficiency:  Energy standard 55 (no fossil fuels)  Emission targets over the life cycle have to be met (including construction) – QNG  Cap for construction costs and floor space
Subsidies	 Loan per apartment: €200k  Amortisation discount: 30-35%  Interest rate: 0-0.5%  Required minimum energy standard of 55	 Increase of depreciation on newly built residential properties from (currently) 3% linear to 5% degressive p.a.; threshold for special depreciation from €4,800 to 5,200 / sqm	 No direct grant; max. one housing unit  Subsidized mortgages, reduced interest costs (0.34%-3.43%1 ) by federal KfW Bank  €90–270k loan volume (with QNG certificate)  Will be accepted as equity substitute	 No direct grant  Subsidized mortgages (2.33%- 3.00%) by federal KfW Bank (volumes per unit)  Max. €100,000 loan volume  Up to €150,000 with QNG certificate	 No direct grant  Subsidized loans  €100,000 per apartment  Different durations (e.g. 1.13% for 10 yrs)

Coalition agreement of new German government contains positive elements – first positive steps taken

		Agreement contains ideas for new construction that point in the right direction
	Housing  construction turbo	 Draft law reform to speed up construction processes introduced  Local authorities will be able to waive the requirement to draw up zoning plan under certain circumstances (§ 246e Building Code)
	Building types	 Building standards are planned to be simplified and the "building type E" will be legally secured  Political target to reduce construction costs (incl. modular and serial construction)
	Subsidies for owner occupiers	 Tax incentives, equity-replacing measures and state guarantees for mortgages will be examined
	Social housing	 Increase in investments in social housing
	Municipal housing	 Support of new construction of municipal housing companies (equity replacing measures)
	KfW55	 Temporary reintroduction of subsidies for KfW55 standard

Instone share Basic data Shareholder structure (July 2025)

 ISIN:	DE000A2NBX80
 Ticker symbol:	INS
 No of shares:	43.323m (excl. treasury shares)
 Market cap:	€405.1m
 Average daily trading volume: €0.1m
 Market segment:	Prime Standard, Frankfurt

© Instone Group ⁵¹ 1 Based on closing price on 31/07/ 2025 at €9.35

Financial calendar

07	Aug.	2025	Group Interim Report for the first half of 2025
9	Sept.	2025	Roadshow London, Metzler
22	Sept.	2025	Berenberg & Goldman Sachs 14th German Corporate Conference, Munich
23	Sept.	2025	Baader Investment Conference, Munich
6	Nov.	2025	Quarterly Group Statement as of 30 September 2025

The Instone Management Board

Kruno Crepulja CEO

• CEO since 2008 (of Instone's predecessor formart)
• Comprehensive experience as an engineer, site manager and project developer
• 17-year career on the management boards of large development companies
• Appointed until 30 June 2029

David Dreyfus CFO

• CFO, since 2023

• 28 years of experience in corporate finance and capital markets, including as Director with Lazard and Senior Partner of Lilja & Co.

• Mr. Dreyfus already advised Instone in preparation and execution of its IPO in 2017 and 2018
• Appointed until 31 December 2027

Andreas Gräf COO

• COO since 2008 (of Instone's predecessor formart)
• Established the residential development as a standalone business model at HOCHTIEF
• Working in the construction and real estate sector for 30 years
• Appointed until 31 December 2027

Investor Relations Contact

Burkhard Sawazki Head of IR and Capital Market Communication & Strategy T +49 201 45355-137 M +49 173 2606034

burkhard.sawazki@instone.de

Tania Hanson Roadshows & Investor Events

T +49 201 45355-311 M +49 152 53033602 tania.hanson@instone.de

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Instone Real Estate Group SE Grugaplatz 2-4 45131 Essen

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