- In a pre-close update ahead
of its FY24 accounts, Neinor Homes confirms that it has fulfilled
its FY24 Adjusted Net Income target of €65mn
- On 24 January, the company
will complete the first distribution payment of €62mn (gross
€0.83/sh) approved at the EGM held in December 2024
- Furthermore, given the
fulfilment of FY24 targets, the Board of Directors approved a
second distribution of €62mn (gross €0.83/sh), to be paid on 14
March
- 2024 was the company’s
strongest commercialization year on record, with pre-sales of
+2,600# units (c.€840mn), more than doubling its total orderbook vs
2023 to +3,600# units (c.€1.3bn)
Madrid, 20 January 2025.-
Neinor Homes ("Neinor" HOME SM) informs that although consolidated
accounts are yet to be formulated and approved by the company
relevant corporate bodies, it has sufficient visibility to
reiterate the fulfilment of its Adjusted Net Income guidance of
€65mn. Neinor will publish its FY24 results on 25 February after
market close.
In the last 18-months, Neinor Homes
distributed a total of €325mn to shareholders
At a meeting held last week, the Board of
Directors (BoD) confirmed the second distribution to shareholders
as approved at the December 2024 Extraordinary General Meeting
(EGM). The payment date is scheduled to take place on 14 March and,
the last trading date entitled to receive the distribution of €62mn
(gross DPS of €0.83/sh) is 11 March.
The first distribution to shareholders approved
at the EGM will be paid on 24 January, and Tuesday, 21 January is
the last trading date for shareholders to receive this distribution
of €62mn (gross DPS of €0.83/share).
After these distributions, Neinor will have
successfully distributed a total of €325mn to its shareholders in
the last year and a half, which represents 54% of the 5-year €600mn
target set out in its Strategic Plan (2023-27). Both payments will
be executed through a capital reduction with a return of
contributions to shareholders, following the same structure used in
recent years. As a result, it will be subject to a 1% tax on the
value of the returned contributions, which Neinor Homes will
withhold, self-assess, and remit to the Bizkaia Regional Tax
Authority.
Furthermore, for FY25, the company expects to
distribute an additional €125mn to its shareholders (gross DPS of
€1.67/sh). In total, and until 1Q26, the company expects to
distribute €250mn (gross DPS of 3.33/sh), equivalent to +20% yield
at the current market price.
Highly dynamic commercialization
environment and acceleration of JV business drives +47% annual
growth in pre-sales
Over the course of 2024, Neinor has achieved
pre-sales of +2,600 housing units for a total consideration of
c.€840mn – including joint-ventures. If we consider only the core
build-to-sell (BtS) business, pre-sales stood at +2,100 housing
units (c.€750mn and Average Selling Price c.€350k/#), implying an
annual growth of +47%.
By the end of 2024, the total orderbook managed
by Neinor exceeded 3,600 housing units, which have a combined value
of c.€1,300mn. This compares to 1,283 units and considerations of
€434mn from the previous year. This performance highlights the
strong commercialization environment and the faster-than-expected
growth of Neinor’s joint-venture business, with contributions from
the agreement with Habitat Inmobiliaria and the vehicles with Orion
Capital and Axa IM Alts.
Strong macro tailwinds with Spanish GDP
expected to have grown by +3% in 2024
Despite further macroeconomic uncertainty during
the year, the Spanish economy is expected to have expanded by
+3.0%, significantly ahead of the average of European Union
countries (+0.9%). Throughout the year, GDP growth expectations for
Spain have been revised successively upwards, more than doubling
the initial forecast of 1.4%. For 2025, the Spanish economy is
expected to grow by +2.2% - outpacing the average EU forecast
growth of +1.3%. (source: Bloomberg consensus).
In addition to the buoyant tourism sector in
Spain, the Spanish economy has been thriving due to strong internal
demand and private consumption, which represent the most important
drivers of GDP growth. Contributing to this, the Spanish economy
created more than 500,000 new jobs in 2024, while the number of
registered contributors to Social Security in Spain has reached a
new historical high of 21.3mn in 2024. In addition, the
unemployment rate is expected to have dropped to 11.5%, from 12.2%
the previous year (source: Bloomberg).
Furthermore, Spanish households continue to
benefit from strong balance sheets with low leverage and savings
rates above the historical average. The pivotal change in the
interest rate cycle, signalled by the ECB throughout 2024 with four
cuts from 4.0% to 3.0%, is expected to strengthen consumer
confidence, helping to drive spending.
Borja García-Egotxeaga, CEO of Neinor
Homes, commented: "Looking into 2025, our main goal is to
continue growing our earnings whilst pursuing an equity efficient
strategy. Our target equity investment is €140mn, which will be
achieved by leveraging our existing Joint Ventures, signing new
ones, while also resuming our own land acquisitions programme.”
Jordi Argemí, Deputy CEO and CFO,
explained: " We are extremely proud of the operational and
financial results achieved during 2024 where we took decisive steps
to put in value our JV venture business thanks to the agreements
with Bain, Avenue or Octopus. However, I would like to highlight
the successful comeback to the bond market as an important
milestone in the execution of our business plan as we extend
maturities and get more flexibility to pursue our equity efficient
growth strategy and shareholder remuneration targets.”
* For the full regulatory announcement please refer to Neinor’s
webpage
(https://www.neinorhomes.com/en/accionistas-inversores/regulatory-announcements)
-ENDS-
About Neinor Homes
Neinor Homes is the leading residential property
developer in Spain, with a land bank to develop c12,000 homes, and
a GAV to June 2024 of €1.5bn. This land bank is located in some of
the fastest growing regions with the best economic fundamentals in
Spain: Madrid, Western and Eastern Andalusia, Levante, Basque
Country and Catalonia.
Neinor is a fully integrated and
well-established residential platform of scale in Spain, covering
the entire development value chain from land buying, planning and
urban management, product design, delegated development and
construction, sales and marketing and rentals. We are committed to
creating and delivering attractive risk adjusted returns for
shareholders through our disciplined capital allocation strategy
and our excellence in operations and risk management.
We are the only listed residential property
developer with a multi-sector strategy to market in Spain, and our
strategies include Build-to-rent (BTR); Build-to-sell (BTS); and
the largely untapped senior living rental market in Spain, which we
are progressing.
Neinor’s operational excellence, investment
strategy and results achieved since 2019 have enabled us to deliver
on our 5-year business plan, launched in March 2023, in a
sustainable and capital-efficient manner. This plan combines a €600
million shareholder remuneration plan and an investment of €1
billion in new opportunistic land acquisitions, half of which are
expected to be undertaken in joint ventures with strategic partners
through co-investment agreements, with a +20% IRR target.
We offer shareholders attractive risk adjusted
returns in a country where there are strong and sustainable supply
and demand fundamentals, and supported by a resilient macroeconomic
environment and outlook. Spain remains one the most attractive and
safest residential markets worldwide, with one of the lowest ratios
of new supply per capita globally since 2007.
For more information:
NEINOR HOMESInvestor Relations
Departmentinvestor.relations@neinorhomes.com
LLYC
Irene Osuna Díez iosuna@llyc.global
Elena Torres
Quilis etorres@llyc.global
Home Reit (LSE:HOME)
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Home Reit (LSE:HOME)
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