2023 has been a year A good year for the listed property sector. Six major real estate companies recorded gains, two of which are listed on the Ibex-35 and the remaining four on the Permanent Market. The average revaluation of Merlin Properties, Colonial, Lar España, Aedas Homes, Neinor Homes and Metrovacesa is 28.53%, excluding the dividends they distributed during the year.
HE SOCIMI’s best stock market performance (listed real estate investment company) was registered by SOCIMI last year Spain. This real estate agency, which will celebrate its tenth anniversary in business in 2024, specializes in shopping malls and parks, whose future prospects have improved in recent months after several years negatively affected by the rise of electronic commerce. Lar España started 2023 trading at around 4.3 euros per share and finished the year above 6.1 euros. Over 43% revaluation.
Besides Lar España, the biggest increases were seen at Aedas Homes, Neinor Homes and Metrovacesa, three listed developers whose business is land acquisition and housing development. Aedas Houses rose in 2023 %49exceeding 18 euros per title compared to their revaluation 35% And 25% related to Houses of Neinor And Metrovacésarespectively.
Two companies that rose last year: Merlin Properties and ColonialAlmost a 13% and more than 6%, respectively. The real estate company, led by Ismael Clemente, is only 12% below the historical highs it reached before the Covid-19 crisis. In the opposite case, shares of Colonial, the only company still showing a downward trend, are trading 47% below their 2020 level.
Far from historical peaks
Despite the revaluation in 2023, there have been significant declines in national real estate traded on the stock exchange over the years; Some of them are related to the business itself, some are related to the situation in the stock market due to the outbreak of the epidemic. Only above the historical peaks of Lar EspañaIt was registered in 2018 and was accessed this week.
Colonial 99% below It reached its highest values, but they were reached during the housing bubble of 2007 and required recapitalization after the boom, which led to a change in shareholding. But that didn’t stop it from rising more than 330% from its 2014 lows.
Metrovacesa faced a similar situation, but in this case it was delisted. He returned to the hardwood in 2018, but falls piled up. I have one now below 23% more than was quoted at the time. In the case of the remaining two promoters, Aedas fell 30 percent values entered into the stock market Neinor 35%.
dividend rain
In 2023, dividends distributed among shareholders must be added to the returns offered by real estate companies to the market. Merlin Features distributed 0.2 euros per share, which is equivalent to 93.9 million eurostaking into account all outstanding shares. Colonial distributed to participants 134.9 millionequivalent to 0.25 euros per share; during Spain there is a total 50 million or 0.59 euros per share.
The promoters also overpaid their shareholders: Aedas allocated $94 million for dividendsrepresenting 2.15 euros per participation; Neinor, 75 millionone euro per share; And Metrovacésa66 euros per share, which makes the total 100 million.
Analysts are positive
Most analysts who follow the operations of listed real estate companies make recommendations. For example, only one of the 26 financial firms that audited Merlin Properties recommended selling the shares. I recommend buying 18Most of them, including important national and international institutions such as Goldman Sachs, Renta 4, CaixaBank, Banco Santander or CaixaBank, have target prices above 11 euros per share, compared to 10.5 euros with which 2024 starts.
In the case of its colonial counterpart, 12 financial companies recommend buying shares, four prefer selling. The most positive target prices provide a potential revaluation of up to 50% for the Pere Viñolas-led company, including Société Générale, Alantra or Intermoney Valores.