Mixed results emerged from Realia in the latest financial year. The real estate group, controlled by Mexican billionaire Carlos Slim, closed 2022 with revenue totaling €135 million, a decline of €45 million compared to 2021. Net profit for the year stood at €61.47 million, down 13.9% from the prior year. These figures reflect a mixed performance across different business lines within the portfolio and point to a year of adjusting expectations amid a shifting market environment.
From the segment breakdown, the property lease division delivered solid activity, generating €88.24 million in revenue, up nearly 8% year over year. This growth happened against a backdrop of a moderating inflation rate; in 2022, inflation in Spain was reported around 5.7% by the National Institute of Statistics, influencing how landlords and tenants navigated rent adjustments and operating costs. Realia highlighted that it benefited from periodic rent escalations, higher reimbursements for shared expenses, and the expiration of certain COVID-19-related incentives. These drivers, together with stronger income from housing rentals and a favorable return on municipal capital gains, contributed to the segment’s revenue resilience and continued operating efficiency.
In contrast, the development or promotion activity saw a sharp downturn, with turnover down by 55% to €42.56 million. The company explained that, in the development area, revenues were largely tied to the completion and delivery of new units, and the reduced number of units delivered in 2022 was the primary reason for the shortfall. Specifically, 98 homes were delivered in 2022 compared with 291 in 2021, underscoring a slower pace of construction and handover that affected top-line sales. The management team attributed the decline to project schedules and timing of completions, rather than changes in pricing or demand conditions alone, highlighting strategic timing as a key factor in annual results.
Meanwhile, the services segment posted a positive year, increasing by 25% to €4.39 million. This growth was driven by new contracts with third parties for marketing services, technical management, and administrative-financial management, reflecting a broader strategy to monetize ancillary capabilities and leverage the group’s operational know-how beyond core property ownership. The improvement in services underscores the company’s ability to diversify revenue streams and optimize overhead costs through external partnerships.
No decrease in asset value
Realia reported an increase in asset values of €11.56 million for 2022. While this uplift is smaller than the gain recorded in 2021, the company pointed to external factors impacting valuation. Specifically, higher interest rates contributed to a shift in investor expectations and capitalization rates, which in turn influenced the appraisal of real estate assets. The group emphasized that the valuation environment remained dynamic, with rate movements shaping property confidence and future capital allocation plans. This context helps explain the modest rise in asset values despite ongoing market headwinds and the broader macroeconomic backdrop that affected asset pricing during the year.
On the debt side, Realía successfully reduced leverage, cutting total debt by 11.6% to €554.79 million in the last financial year. Management attributed this improvement to disciplined cash flow management and strategic use of depreciation in relation to project financing. A notable factor was the depreciation associated with a €120 million intra-group loan extended in December 2021 to facilitate the acquisition of a 37.11% stake in Hermanos Revilla. This move, along with other debt-reduction efforts, helped strengthen the balance sheet and lower financing costs as part of the group’s ongoing liquidity strategy.