Neinor Homes closed the previous year with revenues of 594 million euros, down 22% from the prior year when results exceeded 765 million. In its first annual results since unveiling the new strategic plan, the Madrid-listed developer led by Borja García-Egotxeaga also reduced net profit, though to a lesser extent than sales, by 5% to 91.4 million.
During the last twelve months, Neinor delivered 2,559 homes and maintains a land bank that will allow the company to build 12,700 properties in the coming years. Overall, the company’s assets are valued at 1,459 million euros, with net debt reducing to 1,176 million after subtracting corporate liabilities. The group cut its liabilities by 15% in the past year, bringing them to 376.7 million: 163.5 million in long-term debt down 50% and 213.2 million in current liabilities up 84%.
The new roadmap for Neinor centers on boosting investor profitability and rotating assets to reward shareholders, aimed at correcting the stock market’s mispricing of the company’s assets. The operator’s revised model, which focuses on developing projects in collaboration with external partners, has lifted the gross margin on its developments to 29.3%. In line with this strategy, Neinor has signed investment agreements with AXA’s investment arm, Orion (the company’s largest shareholder) and Urbanitae to invest 300 million euros in housing development across various co-investment vehicles.
Neinor plans to distribute dividends totaling 600 million euros to shareholders in the coming years. To date, 126 million euros has already been paid and the company anticipates delivering 325 million euros (equivalent to 4.34 euros per share) over the next 24 months. A company statement noted that this dividend policy positions Neinor with Europe’s highest dividend yield in the market.
In the same document, Borja García-Egotxeaga, Neinor’s chief executive, stated: “2023 was a year of significant challenges and successes, during which the company defined the path for the sector’s next years in Spain based on shareholder profitability and co-investment as the main catalysts for capital attraction. Integrating these principles into the fundamentals of our business plan will broaden market diversification and allow us to set higher medium-term targets.” Similarly, Jordi Argemí, Neinor’s chief financial officer and deputy CEO, added: “The 2023 results illustrate our continued ability to read and anticipate real estate and financial investment cycles. Notably, the refinancing of the bond and the use of interest rate caps helped reduce financing costs, protect margins, and today enable the distribution of the most attractive dividend in the Spanish market, creating value for shareholders.”
4,000 homes are currently under construction across various development stages to be delivered before 2025. About 59% of these properties scheduled for completion in the next 24 months are already reserved, with a cancellation rate around 1%. The company still needs to sell 2,700 units, of which 1,600 are homes intended for sale to private buyers and 1,100 units are entirely sold to an investor for rental, a model known in the market as build to rent.