Aedas Homes achieves the best annual results in its history after earning more than 100 million, 13% more

It will propose the distribution of 94 million in dividends, at a rate of 2.15 euros per share, which represents a 'pay-out' ratio of around 90%

MADRID, 31 May. (EUROPA PRESS) -

Aedas Homes recorded a net profit of 105 million euros in its 2022-2023 fiscal year, which ended on March 31, which represents an increase of 13% compared to the previous year, as reported by the company on Wednesday.

In this way, the promoter registers the best annual results in its history after achieving record revenues of 920 million euros, 20% more, and an adjusted gross operating result (Ebitda) of 164 million, 10% more.

"For the fifth year in a row, we met our objectives and generated value throughout the cycle, consolidating our leadership in the development sector. In this last year, we have broken a record for total income and also for deliveries of homes in the current real estate cycle with 3,544 units", has highlighted the CEO of Aedas Homes, David Martínez.

Martínez has highlighted that the Aedas Homes business is supported by a "solid" financial situation that is reflected in a liquidity of 245 million, in addition to several additional undrawn liquidity lines.

Likewise, the company presents a diversified debt structure, mostly with long-term maturity and almost 65% at a fixed rate.

To all this we must add that Aedas Homes continues with stable leverage levels -in line with the seasonality of the business marked by the concentration of deliveries at the end of each year- that consolidate a "credit strength" endorsed by the three main agencies rating.

"We are focused on optimizing ROE", highlighted Martínez, who underlined that precisely in this last year the ROE was 10.8%, more than one point higher than in the previous period.

The manager has pointed out the initiatives carried out by the promoter in favor of this profitability, such as the promotion of Modern Construction Methods (MMC) or the creation of a "high-quality and very liquid" land bank in which they maintain a discipline in investment strategy.

Martínez also highlighted that the company has land in the most dynamic markets in the country to continue developing its activity over the next five years and respond to the upper-middle segment of the market.

"This is a demand that we know well and that continues to show resilience," says the CEO.

In its strategy to protect and promote shareholder return, Aedas Homes is strengthening its Real Estate Services division, which it has been developing and consolidating for two years, anticipating market trends.

In this 2022-2023 financial year, of the 3,544 homes delivered, 814 units corresponded to this line both under a co-investment regime (420) and through management on behalf of third parties (394), consolidating itself as the reference partner to execute this type of operations.

In line with the "excellent" financial results, the board of directors of Aedas Homes will propose at the next general meeting of shareholders, scheduled for July 20, the distribution of dividends charged to the result of the fiscal year 2022 for a total of up to 94 million euros, equivalent to 2.15 euros per share.

The company, which already paid one euro per share as an interim dividend on March 31, will pay a complementary dividend of 1.15 euros per share at the end of July.

Thus, this dividend would mean a 'pay-out' ratio of around 90% of net profit.

Looking to the future, Martínez has announced that Aedas Homes will continue to grow despite the volatile situation.

"Spain has an economy with solid fundamentals and a broad demand for housing that support the growth of the sector in the long term. This scenario will allow us to continue fulfilling the commitments acquired with our customers and shareholders," he stressed.

As of March 31, 2023, the developer had a sales portfolio of 3,703 units (3,136 'Build to Sell' -BtS- and 567 'Build to Rent' -BtR-) for a value of more than 1,200 million euros with sales coverage of 75% for fiscal year 2023 and 32% for fiscal year 2024, all of which provides visibility on revenue generation for the next two years.

Likewise, Aedas Homes had 8,623 units on sale as of March 31, of which 5,740 were already under construction, confirming the company's "great capacity" for management and execution.

"Despite the historical results of Aedas Homes, we closely follow the new market dynamics, seeking and identifying new projects such as the development of new alliances for 'living' projects with institutional investors and 'family offices'. Projects that we would find response to new social and residential needs, including public-private collaboration projects. Aedas Homes does not stop evolving and continues to collaborate in the transformation of the developer business", pointed out Martínez.

Looking ahead to the coming months, Martínez pointed out in a meeting with journalists that the rise in interest rates will cause new construction sales to fall by 15% or 20%, but he does not consider it "worrying."

"Everything points to the fact that, if geopolitics allow it, the ECB will slow down this increase in interest rates and this will allow economic activity to increase and growth to recover and with that will come a recovery in sales. I think that We will see it throughout 2024," he added.

In fact, he predicts that next year Aedas Homes will achieve record sales due to the increase in the purchasing power of buyers derived from the rise in wages and the drop in inflation.

Martínez also stressed that Aedas Homes' income statement for the coming years "is quite secure" thanks, among other things, to the investment in land that the promoter has made. Recently, the company has bought a couple of plots in Madrid, specifically in Valdecarros.