- In an update ahead of the close of its accounts for FY24, Neinor Homes confirms that it has achieved its adjusted net profit target of €65 million for FY24.
- On January 24, the company will finalize the first distribution payment of €62 million (€0.83 gross/sh) approved at the December 2024 EGM.
- Furthermore, taking into account the achievement of the objectives for the 2024 financial year, the Board of Directors approved a second distribution of €62 million (€0.83 gross/sh), to be paid on March 14.
- 2024 was the company’s strongest marketing year ever, with pre-sales of +2,600# units (approximately €840 million), more than double its total order book compared to 2023 at +3,600# units (around 1.3 billion euros)
Madrid, January 20, 2025.- Neinor Homes (“Neinor” HOME SM) informs that although the consolidated accounts have not yet been formulated and approved by the relevant corporate bodies of the company, it has sufficient visibility to reiterate compliance with its profit objective adjusted net of 65 million euros. Neinor will publish its FY24 results on February 25 after trading.
Over the past 18 months, Neinor Homes has distributed a total of €325 million to shareholders
At a meeting held last week, the Board of Directors (BoD) confirmed the second distribution to shareholders as approved at the Extraordinary General Meeting (EGM) in December 2024. The payment date is scheduled for on March 14 and the last listing date giving right to the distribution of €62 million (gross DPS of €0.83/sh) is March 11.
The first distribution to shareholders decided by the AGM will be paid on January 24, with Tuesday January 21 being the last trading day for shareholders to receive this distribution of €62 million (gross DPS of €0.83/share).
After these distributions, Neinor will have managed to distribute a total of 325 million euros to its shareholders over the last year and a half, which represents 54% of the objective of 600 million euros over 5 years set in its strategic plan (2023-27). Both payments will be made through a capital reduction with return of contributions to shareholders, according to the same structure used in recent years. As a result, it will be subject to a tax of 1% on the value of the contributions returned, which Neinor Homes will collect, self-assess and remit to the Regional Tax Administration of Biscay.
Furthermore, for financial year 25, the company plans to distribute an additional 125 million euros to its shareholders (gross DPS of €1.67/sh). In total, and until 1Q26, the company plans to distribute €250 million (gross DPS of 3.33/sh), equivalent to +20% yield at the current market price.
A very dynamic marketing environment and the acceleration of JV activities generate annual growth of +47% in pre-sales
During 2024, Neinor carried out pre-sales of +2,600 homes for a total consideration of approx. €840 million” including joint ventures. If we only consider the core business of construction to sell (BtS), pre-sales amount to +2,100 housing units (around €750 million and average sales price around €350 thousand/#), i.e. growth annual +47%.
At the end of 2024, the total order book managed by Neinor exceeded 3,600 housing units, with a cumulative value of approximately 3,000 units. €1,300 million. This compares to 1,283 units and considerations of €434 million from the previous year. This performance highlights the strong marketing environment and faster-than-expected growth of Neinor’s joint venture business, with contributions from the deal with Habitat Inmobiliaria and vehicles with Orion Capital and Axa (EPA:) IM Alts.
Strong favorable macroeconomic conditions, with Spanish GDP expected to grow by +3% in 2024
Despite further macroeconomic uncertainties during the year, the Spanish economy is expected to have grown by +3.0%, significantly higher than the average for European Union countries (+0.9%). Throughout the year, GDP growth forecasts for Spain have been successively revised upwards, more than doubling the initial forecast of 1.4%. For 2025, the Spanish economy is expected to grow by +2.2%, surpassing the average EU growth forecast of +1.3%. (source: Bloomberg consensus).
In addition to the dynamism of the tourism sector in Spain, the Spanish economy has prospered thanks to strong domestic demand and private consumption, which represent the main drivers of GDP growth. Contributing to this, the Spanish economy created more than 500,000 new jobs in 2024, while the number of registered social security contributors in Spain reached a new historic high of 21.3 million in 2024. In addition, the unemployment rate should have fallen. at 11.5%, compared to 12.2% the previous year (source: Bloomberg).
Additionally, Spanish households continue to benefit from strong balance sheets, with low debt and savings rates above the historical average. The crucial shift in the interest rate cycle, signaled by the ECB throughout 2024 with four cuts from 4.0% to 3.0%, is expected to boost consumer confidence, helping to boost spending.
Borja García-Egotxeaga, CEO of Neinor Homes, commented: “Looking ahead to 2025, our main objective is to continue to grow our profits while pursuing an efficient equity strategy. Our equity investment target is €140 million, which will be achieved by leveraging our existing joint ventures, signing new ones, while taking back our own land. acquisition program.
Jordi Argemà, deputy general manager and financial director, explained: “We are extremely proud of the operational and financial results obtained during the year 2024 where we took decisive measures to promote our JV venture activity thanks to the agreements with Bain, Avenue or Octopus. I would however like to highlight the successful return of the bond market as an important step in the execution of our business plan as we extend maturities and benefit from more flexibility to pursue our efficient stock growth strategy and our shareholder remuneration objectives.
For the full regulatory announcement, please refer to the Neinor webpage (https://www.neinorhomes.com/en/accionistas-inversores/regulatory-announcements)
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About Maisons Neinor
Neinor Homes is the leading residential property developer in Spain, with a land reserve to develop around 12,000 homes and a GAV until June 2024 of 1.5 billion euros. This land base 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 large-scale residential platform in Spain, covering the entire development value chain from land purchase, urban planning and management, product design, delegated development and construction, sales, marketing and rental. We are committed to creating and delivering attractive risk-adjusted returns for shareholders through our disciplined capital allocation strategy and excellence in operations and risk management.
We are the only listed residential property developer with a multi-sector marketing strategy in Spain, and our strategies include Build to Rent (BTR); Build to Sell (BTS); and the largely untapped retirement home rental market in Spain, which we are growing.
Neinor’s operational excellence, its investment strategy and the results achieved since 2019 have enabled us to achieve our five-year business plan, launched in March 2023, in a sustainable and capital efficient manner. This plan combines a shareholder remuneration plan of 600 million euros and an investment of 1 billion euros in new opportunistic land acquisitions, half of which should be carried out in joint venture with strategic partners through agreements co-investment, with an IRR objective of +20%.
We provide shareholders with attractive risk-adjusted returns in a country where supply and demand fundamentals are strong and sustainable, and supported by a resilient macroeconomic environment and outlook. Spain remains one of the most attractive and secure residential markets in the world, with one of the lowest new supply per capita ratios in the world since 2007.
For more information:
NEINOR HOUSES
Investor Relations Department
investors.relations@neinorhomes.com
LLYC
Irene Osuna Diez iosuna@llyc.global
Elena Torres Quilis etorres@llyc.global
Source: Neinor Homes, SA
