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- Neinor will pay a dividend yield of 40% during 2024-25, the highest in the IBEX35 and the STOXX600 during 2024-25, and increases the medium-term net profit forecast by 10%

MADRID, February 21, 2024 /PRNewswire/ -- Neinor Homes (TICKER: HOME SM) is the leading residential platform in Spain, with a land reserve to develop c12,700 homes, and a GAV as of December 2023 of 1,450 million of euros. In 2023, Neinor was recognized by Sustainalytics® as the world's listed developer with the lowest ESG risk for three consecutive years.

Neinor published the results for fiscal year 2023, delivering 2,559 homes and, despite a context of high interest rates and high inflation, recorded its highest margins to date with 29% and 23% gross margin and EBITDA, respectively . Adjusted net profit stood at 99 million euros, 10% above consensus and market forecasts. Consequently, cash flows have been higher than expected allowing the developer to end 2023 with an LTV of 14% versus the expected 20-25%.

According to its Strategic Plan (2023-27), in the next 24 months, the developer expects to distribute 325 million euros to its shareholders (DPS: €4.34/sh) equivalent to a profitability of 40%, the highest in the market Spanish and European. The deliveries planned to finance these dividends are currently 100% under construction and have a high percentage of pre-sales in force. The company continues to enjoy a prudent balance sheet with no refinancing or interest rate risks until 2026.

The other key pillar of its Strategic Plan is efficient capital growth through which the company expects to invest one billion euros in new acquisitions, of which 500 million euros are expected to be made by new strategic partners. Over the past year, Neinor signed three joint venture agreements with renowned investors such as AXA, Orion and Urbanitae to raise €300 million to invest in build-for-sale projects.

Due to the advanced execution of this capital-efficient growth strategy, in which the company targets assets of €500 million, Neinor is increasing its medium-term net profit forecast (2027) by up to 10%, equivalent to 80 million euros per year based on the financial contribution of the co-investment.

With a strong recovery after the financial crisis, Spain is quickly emerging as one of the safest residential markets in the world, with a shortage of housing supply, little leverage and prices below those of the financial crisis.

According to Mario Lapiedra, head of investment at Neinor Homes, "households, banks and developers have learned the lessons of the financial crisis. Today we see a prudent capital structure, low levels of supply and an affordable market with a wide availability of mortgages. Furthermore, today, the Spanish real estate market offers one of the best risk-adjusted returns in the European residential sector."

Photo - https://mma.prnewswire.com/media/2344444...

Media Contact: Investor Relations, investor.relations@neinorhomes.com

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