“2018 was a very good year for AEDAS Homes, a year in which we achieved all the targets set out in our Business Plan”
- The company delivered 231 units as expected, acquired land for 2,616 units – 2.5 times the Business Plan target – and closed 1,240 sales for a total of €447 million
- The homebuilder reported €2.5 million in profits, with its GAV and NAV increasing by 19.8% and 7.7%, respectively
- In addition to the strong operational and financial results, David Martinez, CEO of AEDAS Homes, highlighted the creation of the company’s new ‘offsite’ business line: “We have become leaders in developing homes built offsite”
May 2019.- David Martinez, CEO of AEDAS Homes, put the spotlight on the company’s outstanding effort and hard work in 2018 in his speech at the 2019 Annual General Meeting of shareholders, in which all motions on the agenda were approved. The CEO sent a clear message to shareholders: “2018 has been a very good year for AEDAS Homes. Both from a financial and an operational point of view, we achieved the targets set out in the Business Plan”.
The company’s operational success resulted in a significant increase in activity across all business areas. “This year’s effort has been both intense and successful, and it strengthened our foundations as we move closer to our goal of delivering 3,000 new homes each year,” said David Martinez.
The CEO explained the company's big figures: “In 2018 we launched 41 developments, which have a a total of 2,265 new homes and a value of €708 million, and we closed out the year with 76 developments underway – this means 4,038 new homes and a total value €1.485 billion”. He also highlighted the delivery of 231 homes, “in line with expectations in the Business Plan”, as well the 2,311 construction permits that were secured and the start of construction works on 2,532 new homes.
AEDAS Homes closed 1,240 sales in 2018 for €447 million and had accumulated sales, net of deliveries, of 1,908 units for €703 million, with an average selling price of €368,000, which was higher than the €330,000-350,000 range in the company’s Business Plan. “This very strong order book gives us excellent visibility over the next two years, as we have 77% of 2019 deliveries (1,055 units) and 47% of our 2020 deliveries (1,986 units) already sold,” stressed David Martínez.
Exceptional investment capacity
The CEO of AEDAS Homes praised the developer’s capacity for investments and for finding opportunities: “With regard to land investment, 2018 was an optimal year. We acquired land for 2,616 units - two and a half times more than expected - for €129 million”. He specified that these investments were located primarily in the provinces of Madrid, Seville, Granada, Valencia, Alicante and Valladolid.
Positive financial results and an appreciation in the value of assets
From a financial standpoint, David Martinez reiterated the company’s achievement of its targets, with profits of €2.5 million. "Our gross margin was 29.8%, which sends a strong message about of the health of this business," he said. He also highlighted a 19.8% increase in GAV, now standing €1.768 billion, according to Savills’ valuation, and a 7.7% increase in NAV, now at €1.616 billion, which is equivalent to € 33.70 per share.
Another one of the key areas touched on by the CEO of AEDAS Homes was that of financing. Firstly, he highlighted the importance of having obtained a term loan in 2018 for a maximum amount of 150 million euros (of which €60 million was drawn down) to be used to bring forward land acquisitions, and secondly, he commented on the commercial paper programme and its very favourable conditions for the company, which at year-end had a balance of €34 million issued.
“Loan to Cost and Loan to Value ratios stood at 9% and 5%, respectively. Both these figures are very reasonable, considering the nature of our business”, he explained.
Leaders in offsite building
David Martínez dedicated a special section of his speech to the creation of the company’s offsite business line. "We are very proud to be the first Spanish homebuilder in the new real estate cycle to launch a development built entirely in a modern manufacturing facility: Merian I, in Torrejón de Ardoz, which will be delivered in the coming weeks. We have become leaders in developing housing built offsite and with this initiative, we can respond to the need to deliver the houses in a shorter period of time and with higher execution quality”, he said.
More Innovation: LIVE Project
The CEO of AEDAS Homes also highlighted its innovative LIVE project, a pioneering 'on line' marketing format that allows homes being built off plan which are not yet under construction to be shown to customers thousands of miles away by integrating a real estate advisor into a 3D digital development with an unprecedented level of detail and realism. “This platform is especially useful for foreign customers or customers from Spain who are seeking their second home on the coast,” he said.
Prepared for the challenges ahead
David Martínez stressed that, after 2018, “AEDAS Homes is a more solid and better organised company to face any future challenges with solvency”. “Our numbers back it up,” he said.
The CEO concluded his speech to shareholders by recognising the AEDAS Homes management team and all the company’s employees and thanking them for their “extraordinary performance, commitment and determination to create a company that is now a standout in the real estate sector”. He then thanked the company’s shareholders and investors for their “continued trust in the company”.
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 1.8 million square meters to build over 15,000 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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