- In an advance update ahead of its FY24 accounts, Neinor Homes confirms it has achieved its FY24 adjusted net income target of €65 million.
- On January 24, the company will complete the first distribution tranche of EUR 62 million (total EUR 0.83/share) approved at the Extraordinary General Assembly meeting held in December 2024.
- Furthermore, given the achievement of FY24 targets, the Board of Directors approved a second dividend of EUR 62 million (total EUR 0.83/share), which will be paid on March 14.
- 2024 was the company’s strongest commercial year ever, with pre-sales reaching +2,600# units (about €840 million), more than doubling the total order book compared to 2023 to +3,600# units (about €1.3 billion).
Madrid, January 20, 2025.- Neinor Homes (“Neinor” HOME SM) reports that although the consolidated accounts have not yet been drafted and approved by the company’s relevant corporate bodies, it has sufficient visibility to repeatedly meet its adjusted net income guidance of €65 million. Neinor will publish its FY24 results on February 25 after the market closes.
In the past 18 months, Neinor Homes has distributed a total of €325 million to shareholders.
At its meeting held last week, the Board of Directors confirmed the second distribution to shareholders as approved at the Extraordinary General Assembly meeting in December 2024. The payment date is scheduled for March 14, and the last trading date is entitled to receive a distribution of 62 million euros ( Total DPS of €0.83 per share) is March 11.
The first dividend approved will be paid to shareholders at the Extraordinary General Meeting on 24 January, and Tuesday 21 January is the last trading date for shareholders to receive this distribution of €62 million (total dividend of €0.83 per share).
Following these distributions, Neinor will have successfully distributed a total of €325 million to its shareholders in the past year and a half, representing 54% of the five-year target of €600 million set out in its strategic plan (2023-2027). Both payments will be implemented through a capital reduction with contributions returned to shareholders, following the same structure used in recent years. As a result, you 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 Bzkaya Regional Tax Authority.
Furthermore, for FY25, the company expects to distribute an additional €125 million to its shareholders (total DPS of €1.67 per share). In total, until Q1 2026, the company expects to distribute EUR 250 million (gross DPS of 3.33/sh), equivalent to a +20% return at the current market price.
A highly dynamic marketing environment and acceleration of joint venture business are driving 47% annual growth in pre-sales
Over the course of 2024, Neinor achieved pre-sales of more than 2,600 residential units for a total of c. 840 million euros “including joint projects. If we look only at the basic construction for sale (BtS) business, the pre-sales amounted to +2,100 residential units (about 750 million euros and average sale price of about 350 thousand euros), which means Annual growth of +47%.
By the end of 2024, the total order book managed by Neinor exceeded 3,600 residential units, with a total value of c. 1,300 million euros. This compares to 1,283 units and considerations worth €434 million from the previous year. This performance highlights the strong commercial environment and 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 Exa (EPA:) IM Alts.
Spain’s GDP is expected to grow by +3% in 2024
Despite increased macroeconomic uncertainty during the year, the Spanish economy is expected to grow by +3.0%, significantly outperforming the EU average (+0.9%). Throughout the year, Spain’s GDP growth forecast has been revised upwards successively, more than double the initial forecast of 1.4%. For 2025, the Spanish economy is expected to grow by +2.2% – exceeding the EU average forecast of +1.3%. (Source: Bloomberg Consensus).
In addition to Spain’s thriving tourism sector, the Spanish economy has boomed due to strong internal demand and private consumption, which are 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 reached a new historic high of 21.3 million in 2024. In addition, it is expected to decline Unemployment rate. To 11.5%, from 12.2% the previous year (Source: Bloomberg).
Furthermore, Spanish households continue to benefit from strong balance sheets with leverage and savings rates below the historical average. The pivotal change 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 increase spending.
Borja Garcia Igotxeja, CEO of Neinor Homes, commented: “Looking to 2025, our main goal is to continue increasing our profits with an effective equity strategy. Our target equity investment is €140 million, which will be achieved by leveraging our existing joint ventures, signing new ones, while also resuming our territory.” Program Acquisition.
Jordi Argema, Executive Vice President and Chief Financial Officer, explained: “We are very proud of the operational and financial results achieved during 2024 as we took decisive steps to add value to our joint venture business thanks to the agreements concluded with Bain, Avenue or Octopus. However, I would like to highlight the successful return to the market. The bond market is an important milestone in Executing our business plan as we extend maturities and gain greater flexibility to pursue an effective equity growth strategy and shareholder compensation goals.
For the full regulatory announcement, please refer to Neinor’s webpage (https://www.neinorhomes.com/en/accionistas-inversores/regulatory-announcements)
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About Ninor Houses
Neinor Homes is Spain’s leading residential property developer, with a land bank to develop around 12,000 homes, and a GDV as of June 2024 of €1.5 billion. 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, the Basque Country and Catalonia.
Neinor is a large-scale, well-established integrated residential platform in Spain, covering the entire development value chain from land acquisition, urban planning and management, product design and development, commissioned construction, sales, marketing and rentals. We are committed to creating and delivering attractive risk-adjusted returns to shareholders through our disciplined capital allocation strategy and excellence in operations and risk management.
We are the only listed residential developer with a multi-sector marketing strategy in Spain, our strategies include Build to Rent (BTR); Building for Sale (BTS); And the largely untapped senior living rental market in Spain, which we are developing.
The operational excellence, investment strategy and results achieved by Neinor since 2019 have enabled us to execute our five-year business plan, launched in March 2023, in a sustainable and capital efficient manner. This plan combines a €600 million shareholder remuneration plan with a €1 billion investment in opportunistic land acquisitions, half of which is expected to be implemented in joint ventures with strategic partners through co-investment agreements, with an IRR target of +20%.
We offer shareholders attractive risk-adjusted returns in a country with strong and sustainable supply and demand fundamentals, supported by a resilient macroeconomic environment and outlook. Spain remains one of the most attractive and safest residential markets worldwide, with one of the lowest rates of new supply per capita globally since 2007.
For more information:
Houses of Ninor
Investor relations management
[email protected]
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Irene Osuna Dez [email protected]
Elena Torres Quiles [email protected]
Source: Ninor Homes, SA
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