Neinor Homes meets FY24 targets and approves new distribution to shareholders +10% yield during 1Q25 (€1.66/sh) By Investing.com

• In a pre-closing update ahead of its FY24 accounts, Neinor Homes confirms it has met its FY24 adjusted net income target of €65m
• On January 24, the company will complete the first distribution payment of EUR 62 million (gross EUR 0.83/sh) approved at the EGM held in December 2024.
• Furthermore, considering the fulfillment of FY24 objectives, the Board of Directors approved the second distribution of EUR 62 million (gross EUR 0.83/year), which will be paid out on March 14
• 2024 was the company’s strongest commercialization year to date, with pre-sales of +2600# units (c. EUR 840 million), more than doubling the total order book from 2023 to +3600# units (c. EUR 1.3 billion)

Madrid, January 20, 2025- Neinor Homes (“Neinor” HOME SM) informs that although the consolidated accounts have yet to be formulated and approved by the relevant corporate bodies of the company, it has sufficient visibility to repeat the fulfillment of its adjusted net income guidance of EUR 65 million. Neinor will announce its FY24 results on February 25 after the market closes.

In the last 18 months, Neinor Homes distributed a total of EUR 325 million to shareholders

At a meeting held last week, the Board of Directors (BoD) confirmed the second distribution to shareholders as approved at the December 2024 Extraordinary General Meeting (EGM). The payment date is scheduled for March 14, and the last trading date entitled to the distribution of EUR 62 million (gross DPS of EUR 0.83/sh) is March 11.

The first distribution to shareholders approved at the EGM will be paid on 24 January, and Tuesday 21 January is the last trading date for shareholders to receive this distribution of EUR 62 million (gross DPS of EUR 0.83 per share).

After these distributions, Neinor will successfully distribute a total of 325 million euros to its shareholders in the last year and a half, which represents 54% of the five-year goal of 600 million euros set in its strategic plan (2023-27). Both payments will be made by reducing capital with the return of stakes to shareholders, according to the same structure used in recent years. As a result, it will be subject to a 1% tax on the value of the returned contributions, which Neinor Homes will retain, independently assess and remit to the Regional Tax Administration of Bizkaia.

Furthermore, for the 25th fiscal year, the company expects to distribute an additional EUR 125 million to its shareholders (gross DPS of EUR 1.67/sh). In total, by 1Q26, the company expects to distribute EUR 250 million (gross DPS of 3.33/sh), which is equivalent to a +20% yield at the current market price.

A very dynamic commercialization environment and acceleration of JV operations are driving +47% YoY growth in pre-sales

During 2024, Neinor achieved pre-sales of +2,600 housing units for a total price of c. EUR 840 million ” including joint investments. If we consider only the core build-to-sale (BtS) business, pre-sales amounted to +2,100 residential units (c. €750 million and average sales price c. €350,000/#), implying an annual growth of +47% .

By the end of 2024, the total order book managed by Neinor exceeded 3,600 residential units, the total value of which is approx. 1,300 million euros. This compares with 1,283 units and fees of €434 million the previous year. This performance highlights the strong commercial environment and faster-than-expected growth of Neinor’s joint venture, with contributions from a deal with Habitat Inmobiliaria and a vehicle with Orion Capital and Ax (EPA:) IM Alts.

Strong macro tailwinds with Spanish GDP expected to grow by +3% in 2024.

Despite continued macroeconomic uncertainty during the year, the Spanish economy is expected to expand by +3.0%, significantly ahead of the EU average (+0.9%). During the year, GDP growth expectations for Spain have been revised upwards successively, more than doubling the initial forecast of 1.4%. For 2025, the Spanish economy is expected to grow by +2.2% – surpassing the average growth forecast for the EU of +1.3%. (source: Bloomberg consensus).

Apart from Spain’s strong tourism sector, the Spanish economy is thriving thanks to strong domestic 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 social security contributions in Spain reached a new historical high of 21.3 million in 2024. In addition, the unemployment rate is expected to fall to 11.5%, from 12.2% the previous year (source: Bloomberg).

Furthermore, Spanish households continue to benefit from strong balance sheets with low leverage and savings rates above historical averages. A key change in the interest rate cycle, announced by the ECB during 2024 with four cuts from 4.0% to 3.0%, is expected to boost consumer confidence, which will help boost spending.

Borja GarcÃa-Egotxeaga, CEO of Neinor Homes, commented: “Looking to 2025, our main goal is to continue to grow our earnings while pursuing an effective share strategy. Our target equity investment is EUR 140 million, which we will achieve by leveraging our existing joint ventures, signing new ones, while also renewing our own land acquisition program .

Jordi ArgemÃ, Deputy CEO and CFO, explained: ” We are extremely proud of the operational and financial results achieved during 2024, where we took decisive steps to increase the value of our JV venture business thanks to contracts with Bain, Avenue or Octopus. However, I would like to highlight the successful return to the bond market as an important milestone in the execution of our business plan as we extend maturities and gain greater flexibility to execute our strategy of efficient capital growth and compensation to target shareholders.

For the full regulatory announcement, see the Neinor website (https://www.neinorhomes.com/en/accionistas-inversores/regulatory-announcements)

-ENDS-

About Neinor Homes

Neinor Homes is a leading residential property developer in Spain, with a land bank to build c12,000 homes and a GAV to 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, Basque Country and Catalonia.

Neinor is a fully integrated and well-established residential platform of scale in Spain, covering the entire development value chain from land acquisition, planning and urban management, product design, delegated development and construction, sales and marketing and leasing. We are committed to generating and delivering attractive risk-adjusted returns for shareholders through our disciplined capital allocation strategy and our excellence in operations and risk management.

We are the only listed residential real estate investor with a multi-sector strategy for the market in Spain, and our strategies include Build-to-rent (BTR); Build-to-sell (BTS); and the largely untapped rental market for seniors in Spain, which we are thriving on.

Neinor’s operational excellence, investment strategy and results achieved since 2019 have enabled us to deliver on our 5-year business plan, launched in March 2023, in a sustainable and capital-efficient manner. This plan combines a €600 million shareholder reward plan and an investment of €1 billion in new opportunistic land acquisitions, half of which is expected to be undertaken in joint ventures with strategic partners through joint venture agreements, with a target IRR of + 20%. .

We offer shareholders attractive risk-adjusted returns in a country where strong and sustainable supply and demand fundamentals exist, supported by a resilient macroeconomic environment and outlook. Spain remains one of the most attractive and secure housing markets in the world, with one of the lowest ratios of new supply per inhabitant globally since 2007.

For more information:

NEINOR HOMES
Investor Relations Department
investor.relations@neinorhomes.com

LLYC

Irene Osuna DÃez iosuna@llyc.global

Elena Torres Quilis etorres@llyc.global

Source: Neinor Homes, SA