Madrid (ots/PRNewswire) – Neinor Homes (TICKER: HOME SM) is the leading residential building platform in Spain with a land bank for the development of approximately 12,700 homes and a gross value (GAV) of €1,450 million as of December 2023. In 2023, Neinor was recognized by Sustainalytics® for the third year in Consequence recognized as the listed developer with the lowest ESG risk.
Neinor reported FY23 results with 2,559 apartments and posted its highest-ever margins at 29% and 23% gross margin and EBITDA, respectively, despite high interest rates and high inflation. Adjusted net profit amounted to €99 million, 10% above market consensus and forecast. Accordingly, stronger than expected cash flow enabled the developer to end 2023 with an LTV of 14% versus guidance of 20-25%.
According to its strategic plan (2023-27), the construction company expects to distribute €325 million to its shareholders in the next 24 months (DPS: €4.34/sh), which corresponds to a return of +40%, the highest in the year IBEX35 and Stoxx600. The targeted deliveries to self-fund these dividends are currently 100% under construction and have a high percentage of pre-sales. The company continues to benefit from a cautious balance sheet with no refinancing and interest rate risks until 2026.
The other key pillar of the strategic plan is equity-efficient growth, through which the company is expected to invest €1 billion in new acquisitions, of which €500 million will be acquired by new strategic partners. Last year, Neinor signed three joint venture agreements with renowned investors such as AXA, Orion and Urbanitae to raise €300 million to invest in build-to-sell projects.
Due to the advanced implementation of this equity growth strategy, with the company targeting €500 million AUM, Neinor is increasing its medium-term net profit guidance (2027) by up to 10% to approximately €80 million per year, based on the financial contribution of this new business area .
After a strong comeback from the financial crisis, Spain is quickly becoming one of the safest residential real estate markets in the world because of too little supply, too low debt levels and too low prices.
According to Mario Lapiedra, Chief Investment Officer of Neinor Homes, “Households, banks and property developers have learned their lessons from the GFC. Today we see a prudent capital structure, low supply and an affordable market with wide availability of mortgages. In addition, the Spanish real estate market currently offers one of the best risk-adjusted returns in the European housing sector.”
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Press contact: Investor Relations, investor.relations@neinorhomes.com
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