MADRID, 26 (EUROPA PRESS)- Metrovacesa recorded net losses of 35.3 million euros in the first half of the year, in contrast to profits of 12 million euros in the same period of 2022, as reported by the real estate developer on Wednesday. , which has explained that this result is mainly due to accounting adjustments in the valuation of its assets.
The company's revenue figure reached 165.1 million between January and June, 33% less than in the same period last year, although the promoter has highlighted that this figure "is in line with internal objectives and the business", since it is expected that the bulk of home deliveries in 2023 will take place during the second half of the year.
Most of Metrovacesa's income (163.5 million euros) came from its residential business and the rest from the sale of land.
Metrovacesa's developer gross margin rose to 22.2% in the first half of the year, 1.1 points above that registered in the first six months of last year.
For its part, the gross operating result (Ebitda) of the real estate developer stood at 9.7 million euros until June, compared to 23.3 million euros in the first half of 2022.
Metrovacesa delivered 572 homes in the first six months of this year, a figure that is within the company's internal forecasts, since deliveries will be especially concentrated in the second half of the year. In fact, the promoter has stressed that there are a total of 725 units whose construction has already been completed and which will be registered in the coming months.
For this reason, and after the results of the first half of the year, the company has ratified the annual operational objectives that it announced at the beginning of the year, as well as its forecast of achieving free cash flow generation of between 100 and 150 million euros. euro in 2023.
Regarding the land sale activity, Metrovacesa notes a better demand, both for land for residential use and for tertiary use.
Its land sales portfolio reached 52 million euros at the end of the first half of the year, through private contracts, and it expects to formalize most of them before the end of the year, so they will be included in the income statement for the year 2023.
The cash flow generated by Metrovacesa in the first semester was 26.5 million euros, in line with its forecasts. In this sense, the real estate developer has highlighted that this "strong" generation of cash flows has allowed it to pay its shareholders a total of 472 million euros in dividends since 2019, applying the policy of distributing at least 80% of gross operating cash flows for each year.
So far in 2023, the company has already distributed a dividend of 50 million euros (0.33 euros per share).
The company's net debt, as of June 30, stood at 301.6 million euros and the leverage ratio at 12%, remaining below the reference range set by the promoter (between 15% and 20 %) and the industry average.
908 PRE-SOLD HOUSES
From the market point of view, Metrovacesa considers that the demand for housing in Spain "remains at healthy levels", in a context in which both housing prices and construction costs are increasing at more moderate rates than in quarters previous.
"Despite the increase in mortgage rates in recent months, the positive figures for GDP growth and employment are the basic factors that explain this behavior of the real estate market," he points out.
In fact, Jorge Pérez de Leza, CEO of Metrovacesa, has stressed that the residential market "is holding up better than expected a few months ago", which has allowed the company to improve its commercial sales compared to previous quarters.
"This gives us a lot of confidence to maintain our growth strategy, maintaining the forecasts for launches and the start of works on new developments for this year. In any case, we are closely following the evolution of both interest rates and interest rates. job creation, key factors for the current situation to be maintained", he added.
The number of pre-sales carried out by Metrovacesa in the first half of this year is 908 units, at an average price of 325,000 euros per home. In the second quarter of the year, pre-sales were 17% higher than those of the first quarter of 2023 and 14% higher than those of the same period of 2022.
Overall, the total number of Metrovacesa pre-sales reached 1,124 million euros, with a total of 3,507 homes.
There are 4,109 homes under construction, while there are more than 6,750 units on the market, which means potential income of 2,200 million euros, according to what the promoter has indicated.
"All these figures confirm the high visibility and predictability of income and the generation of free cash flows for the next three years and confirm that the company is on the right track to achieve the objective of delivering around 2,000 units per year in the medium term", highlighted Metrovacesa.