EV Digital Invest AG fulfils forecast for financial year 2023

EV Digital Invest AG fulfils forecast for financial year 2023

• Transformation into a diversified investment platform is proceeding smoothly – with a new brand, the acquisition of a digital asset management company, new products, ECSP licensing by BaFin and successful internationalisation, the company is well positioned to generate growth in the 2024 financial year
• Revenue reaches EUR 4.5 million, above analysts' expectations of EUR 4.1 million and at the upper end of the forecast range from 13 November 2023
• Annual result of EUR -3.7 million slightly better than analysts' estimates of
  EUR -3.9 million
• Permanent attractive interest rate and option to differentiate risk should target new customers and create synergy effects between existing products
• Since foundation EUR 247 million financed, of which EUR 39 million in 2023 alone

Berlin, 17 April 2024. EV Digital Invest AG (ISIN: DE000A3DD6W5), operator of the two online investment platforms “Engel & Völkers Digital Invest” and “Digital Invest Assets”, looks back on a challenging year 2023. Despite an extraordinarily difficult market environment, the business results achieved are within the forecast on 13 November 2023 and were also slightly better than analysts had assumed in February 2024. The business development in the 2023 financial year was focused on two strategic pillars – stabilising the core business of property financing and growth in complementary digital investment products. The aim is to position the company for sustainable profitable growth in a market environment that remains challenging.

Marc Laubenheimer, CEO of EV Digital Invest AG, sums up: “The extremely challenging environment in the property sector has also confronted us with great challenges in the Engel & Völkers Digital Invest. Hence, with the launch of the 'Digital Invest Assets' brand, the receipt of the ECSP licence, the ongoing integration of sustainable investments and successful internationalisation, we have achieved successes and expanded our range of services, diversified and broadened our base. As far as our property projects are concerned, we are convinced that the market situation is currently gaining momentum and that it is a good time to invest.”

Business figures for 2023: Stable development in a challenging market environment
At EUR 4.5 million (previous year: EUR 5.7 million), the total income generated in the 2023 financial year was at the upper end of the range of the forecast on 13 November 2023 with EUR 3.9 million to EUR 4.5 and was also better than the EUR 4.1 million expected by analysts in February 2024. The annual result was EUR -3.7 million (previous year: EUR -3.3 million), just better than the analysts' estimate of EUR -3.9 million.

Real estate project financing business with continued high demand in the 2023 financial year
Despite the ongoing weak market development, a total of 13 property projects with a financing volume of more than EUR 39 million (previous year: EUR 55 million) were financed via the “Engel & Völkers Digital Invest” platform in 2023. The placement volume totaled EUR 36 million (previous year: EUR 60 million). Last year, EUR 41 million was repaid to investors (previous year: EUR 32 million). In view of the significant increase in market risks, EV Digital Invest AG's already high quality requirements for new project financing were further tightened in order to reduce potential default risks for investors.

Overall, the high level of interest from investors shows that property investments with an attractive risk/return profile remained in demand even in the crisis year 2023. The properties financed in the 2023 financial year include sustainable logistics properties, which are attributable to the strategic expansion of the partnership with DFI Real Estate. This includes five projects with a financing volume of over ten million euros. In addition to offering energy-efficient logistics parks, there are also plans to expand the sustainable asset classes in the 2024 financial year.

In addition, the market entry in Austria was another important step in the diversification of the property business. The initial project “Am Akkonplatz” in the centre of Vienna with a financing volume of EUR 2.3 million was fully financed in less than three hours. Since the company was founded, the number of property projects financed via the platform now totals 90 properties, with a total financing volume of just under a quarter of a billion euros.

Successful strategic course set
In the past financial year, various measures were also taken to further develop the business model, which originally focused purely on property financing, and to make it more crisis-resilient in terms of diversity. A key milestone in the development into a fully integrated provider of digital investments was the successful acquisition of the award-winning wevest Vermögensverwaltung AG (now: EV Digital Invest Assets Management AG). In addition to efficient ETF portfolios for general wealth preservation and accumulation, the offering under the new 'Digital Invest Assets' brand also includes a range of customised investment solutions tailored to the diverse needs and objectives of wealthy clients.

The core product of property financing was supplemented by the receipt of the ECSP licence from the German Federal Financial Supervisory Authority (BaFin). As a result, investors will benefit from a standardised EU-wide legal framework in future. At the same time, the licence opens up access to new investment opportunities and products. In addition, investors will be able to participate in our property projects with significantly higher investment amounts and an accelerated financing process. The first projects with the new licence have already been successfully placed within a few hours.

Karl Poerschke, COO of EV Digital Invest AG, adds: “We already announced at the time of the IPO that we would use the proceeds to grow through strategic acquisitions. With the acquisition of wevest Vermögensverwaltung, we have reached a milestone on this path. With the new products, we are in a position to respond even better to the individual investment requirements of our customers in order to continue to grow with them even in challenging market phases. We cannot be satisfied with the financial result for 2023. However, we are convinced that we have done our homework and made it through the valley of tears.”

The Executive Board expects business to stabilise in 2024. The Executive Board expects an income growth of 10 percent to 30 percent compared to 2023, with EBIT of up to EUR -1.9 million. As soon as the outlook for the property market improves sustainably and the strategic decisions and new products bear fruit, the Executive Board continues to expect total income to develop at mid-double-digit growth rates in the medium to long term and profitability to be achieved. Due to the continuing high volatility of the market, the Executive Board is not currently issuing any specific forecasts for the coming years.

The annual report for 2023 is available on the company's website at https://www.ev-digitalinvest.de/investorrelations.

About EV Digital Invest AG
EV Digital Invest AG, license partner of Engel & Völkers Marken GmbH & Co. KG, offers investors a broad range of products and services on its digital investment platforms across various asset classes – from real estate and ETFs to holistic wealth management. With a sustainable and quality-focused business strategy, the company has a strong positioning in attractive growth markets.

Under the “Engel & Völkers Digital Invest” brand, investors are given the opportunity to participate in selected real estate projects as co-investors. As a quality-leading platform in the field of digital real estate investment and financing, as well as part of Engel & Völkers' global licensing partner network, it enjoys exceptionally high brand recognition. EV Digital Invest AG has financed real estate projects with over EUR 247 million in investment volume.

Under the brand “Digital Invest Assets”, the company also offers digital investment opportunities unrelated to real estate. The offering includes efficient ETF portfolios for general wealth preservation and growth as well as individual investment solutions - tailored to the needs and goals of wealthy clients/investors.

More information:
www.ev-digitalinvest.de/
www.digitalinvest-assets.de

ENGEL&VÖLKERS DIGITAL INVEST
EV Digital Invest AG
Licence partner of Engel & Völkers Marken GmbH & Co. KG
Joachimsthaler Str. 12
10719 Berlin
www.ev-digitalinvest.de

Contact:
Kirchhoff Consult, Jan Hutterer
Borselstraße 20, 22765 Hamburg
Phone: +49 40 60 91 86 65
E-mail: ev-digitalinvest@kirchhoff.de