- The developer, which reported earnings of €2.5 million in 2018, is adhering to its Business Plan and accelerating its ramp-up, with more than 4,000 units launched
- It acquired land to develop an additional 2,600 homes at an average cost of €49,000, in line with its returns-focused strategy
- The valuation of the company’s assets has increased by 7.5%, reflecting the quality and excellent location of its landbank
- The company has reported an increase in margins, with a gross margin of 29.8%, a figure that is at the upper end of the estimated range published at its IPO
February 2018- AEDAS Homes, a leading residential developer in Spain’s new real estate cycle, reported €2.5 million in profits at the end of 2018 and total revenues of €79.8 million, a 106% increase compared to 2017, when it reported revenues of €38.6 million.
82% of the reported revenues in 2018 come from the delivery of housing units (€65.6 million), with 18% coming from the sale of non-strategic land (€14.2 million). The gross margin on these operations reached 29.8%, a figure that is at the upper end of the estimated range published at IPO, once again confirming AEDAS Homes as an attractive investment opportunity. Likewise, the net debt of the company at year end was €95.7 million, which implies a modest Loan to Value of 5%.
After the most recent valuation conducted by Savills on 31 December 2018, the GAV of AEDAS Homes is now up to €1.768 billion, which means a 20.4% increase over the company’s GAV at the end of 2017, which was €1.475 billion. The company’s NAV now stands at €1.616 billion, which translates into a NAV per share of €33.70, well above where it stood at the end of 2017, with a NAV per share of €31.30. Similarly, the like-for-like GAV grew by 7.5% over the course of 2018, reflecting an increase in the valuation of the company’s land bank due to its quality and unparalleled locations.
“These figures confirm that AEDAS Homes is achieving its objectives and that we are exceeding our expected margins. These operational results demonstrate that we are on the right track in our ramp-up phase and the investments we have made in land show our capacity to replenish the land bank and the visibility that we have over the coming years,” noted David Martinez, CEO of AEDAS Homes.
Accelerating the ramp-up phase
Over the course of 2018, the company accelerated its ramp-up phase, launching 2,265 new homes, with a GDV of €708 million; in total, AEDAS Homes has put 4,038 units on the market since starting up in 2017, with a total GDV of €1.485 billion. The East and Balearic Islands region accounts for 29% of these launches (1,157 units), followed by the Centre region with 26% (1,058 units), Catalonia with 21% (830 units), Andalucia with 13% (531 units) and Costa del Sol with 11% (462 units). Furthermore, AEDAS Homes delivered a total of 231 units in 2018, achieving the target set out in its Business Plan.
Moreover, the homebuilder is continuing on this path by offering excellent visibility on its business plan, with 77% of the deliveries scheduled for 2019 (a total of 1,055 units) already sold. Looking further down the road, the developer has secured 100% of the construction permits for the 1,986 new homes slated for delivery in 2020; 98% of these units are under construction, and 47% have been sold. In total, the company led by David Martinez closed out 2018 with 3,050 units under construction, having broken ground of 2,532 units in the 12-month period.
A land bank for close to 15,000 housing units
The developer comfortably surpassed its investment target for 2018, and in doing so, it has further strengthened the visibility over its delivery commitments for the coming years. In the 12 months of 2018, it acquired plots to develop 2,616 units, two-and-a-half times what it had committed to with its shareholders for the same period (land for 1,042 units) and at an average cost per unit of €49,000, which reflects the company’s strategy of identifying opportunities that adhere to strict investment directives, especially with regard to returns. More than a third of the total assets acquired are located in the Centre region.
AEDAS Homes ended 2018 with a total landbank of 14,892 units and a total investment of €111.7 million, essentially closing a deal every ten days. Moreover, the company has signed purchase options on land for an additional 407 units.
“With these new investments, we are further strengthening visibility on our Business Plan, with a firm focus on the levels of activity we have committed to in order to achieve our run-rate: 3,000 units on the market annually, by 2020, and 3,000 units delivered annually, by 2022”, explained David Martinez, CEO of AEDAS Homes.
About AEDAS Homes
The developer AEDAS Homes became a listed company in Madrid on October 20, 2017, with a market capitalization of over €1.5 billion and is a leader in the nation’s residential development industry. The company plays a key role in the new cycle of the Spanish real estate sector, which must be marked by professionalism and adherence to rigorous standards.
AEDAS Homes has the highest-quality land bank in Spain, according to analysts, since most of this land is classified as ready-to-build. The company has a portfolio with more than 1.5 million square meters to build over 14,500 homes in the nation’s key real estate markets and economic centres, and their surrounding areas: the Centre, Catalonia, the East & Balearic Islands, Andalucía and Costa del Sol.
For more information:
https://www.aedashomes.com/en
AEDAS Homes corporate video:
https://www.youtube.com/watch?v=kkyf0TgNmyY
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