RCS - Neinor Homes - Trading Statement

Neinor Homes SAAnnouncement

24/01/2023 08:15

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RNS Number : 6661N  Neinor Homes  24 January 2023

 

Neinor Homes delivers 2,743 homes in FY22 and meets its annual guidance

 

▪      In FY22, Neinor Homes ("Neinor") has delivered 2,743 homes and
earned more than €750mn in revenues

▪      During the fourth quarter, Neinor maintained a strong sales
performance reaching 582 units

▪      Company gathered market consensus expects EBITDA and Net Income
to amount €146mn and €95mn, respectively

 

Madrid, 24(th) January 2023 - During the fourth-quarter Neinor traded well to
deliver 1,195 homes to its clients, reaching a total of 2,743 for the
full-year, in line with its guidance (2,500-3,000 units). Following the
inclusion of fourth-quarter deliveries, the company's FY22 revenues surpassed
€750mn.

Neinor's build-to-sell (BTS) product accounted for approximately 92% of total
annual deliveries, while build-to-rent (BTR) made up the remaining 8%. In its
BTR business, Neinor has delivered its second purpose-built building - Sky
Homes in Valencia, which totals 213 units.

Commercial activity has maintained a good performance between October and
December with 582 units pre-sold during the period. Despite house price
increases of 5% throughout FY22, Neinor has maintained its net absorption rate
of 5.7%, still above business targets and pre-pandemic levels.

Neinor Rental's yielding portfolio, which consists of 542 units, has finished
the year with 96% occupancy and rental growth of 14.4%. This includes the 156
contracts renewed over the period. This reflects the continued strength of the
Spanish rental market where demand significantly outstrips supply.

 

In December 2022, Neinor announced a major milestone - its first sale of a BTR
building (Hacienda Homes). The sale demonstrates the growing demand for BTR
assets in Spain where Neinor enjoys a leadership position with approximately
3,000 homes to be delivered in the coming years. According to market sources,
the pipeline of BTR product to be delivered in Spain stands at approximately
25,000 homes.

 

The company gathered consensus for EBITDA and Net Income stands at €146mn
and €95mn for the full-year respectively. Neinor will publish its FY22
annual results on 22 February after market close.

 

Borja García- Egotxeaga, Neinor Homes' CEO commented: "We enter 2023 with a
cautiously optimistic outlook backed by the strong fundamentals of the Spanish
residential sector. At year end, Neinor had already pre-sold c.65% of its 2023
target deliveries and, unlike other countries, we don't expect the price of
new homes to decrease in the coming years. Since 2008, the Spanish
housebuilding sector has significantly reduced leverage across households,
financial institutions and developers and today, this is a key and
differentiating factor that will play in our advantage."

 

Jordi Argemí, Neinor Homes' CFO and Deputy CEO also commented that: "Despite
the macroeconomic uncertainty created by geopolitical tensions and the
unprecedent change in monetary policies worldwide, we are pleased to have met
our guidance yet again. We go into 2023 with a strong cash position, with no
refinancing requirements until 2026 and with interest rate risk hedged above
2% until 2026."

 

- Ends -

 

For further information:

Powerscourt

Nick Dibden / Victoria Heslop / Oliver Banks

neinorhomes@powerscourt-group.com

 

 

Neinor Homes

Investor Relations Department

investor.relations@neinorhomes.com

About Neinor Homes

Neinor Homes is the leading residential developer in Spain with a land bank of
15,600 new homes appraised at €1.7bn GAV as of June 2022. This land bank is
located in the most sought after and dynamic regions of Spain that enjoy from
strong economic fundamentals: Madrid, East and West Andalucia, Levante, Basque
Country and Catalonia. Neinor Homes is vertically integrated covering the
whole value chain of the build-to-sell and build-to-rent businesses.
Furthermore, it complements its activity with a services business in which it
has a widespread knowledge in urban permitting, third party development and
construction. In the year 2022, Neinor was recognized by Sustainalytics as the
developer in the world with the lowest ESG risk amongst a total of 284
companies.

 

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