Sareb reported a nine months period of losses totaling 824 million euros, marking a 15% widening from 715 million euros in the same span a year earlier. The rise in financing costs contributed to the red numbers, underscoring the pressure from debt service on the overall result.
A close look at the latest six month activity note highlights a clear uptick in debt interest during the first half of the year, with impact reaching 350 million euros versus 158 million euros the year before. The trend reflects the burden of senior debt and the way it weighs on quarterly performance.
Despite the elevated financing costs, Sareb expects stabilization in the second half, aided by more assertive cash management aimed at smoothing the balance sheet and reducing exposure to interest rate swings.
Sareb faces a strategic choice for 2027: termination or extension
“Interest rates have softened and stabilized in the last quarter, which, together with active management of the company’s cash flow, will allow us to record levels in line with our business plan,” stated Sareb’s chief financial officer, José María Arroyo.
Operationally, Sareb showed positive momentum in the first half, despite a negative result of 474 million euros in the period, an improvement of 557 million euros year over year. Excluding adjustments for accrued interest cancellations, turnover stood at a positive 39 million euros compared with negative 129 million euros the previous year. This reflects the portfolio evolution where the share of financial assets gradually declines and income generation shifts toward real assets.
Real estate activity contributed to revenue growth. Turnover in the real estate assets segment rose by 5% compared with the first half of the prior year, driven by Sareb’s ongoing development projects. Total revenue reached 1,164 million euros, up from the prior year.
Market momentum in the housing segment remains notable. Intense sales activity helped lift home sales by 8% despite a challenging environment characterized by inflationary pressures and shifts in interest rates. Around 5,309 units were closed thanks to the introduction of Árqura Homes.
Sareb anticipates further improvements by the end of the current fiscal year as some service providers that exited in the second half of 2022 continue to influence the marketing of the divested portfolio in early 2023, with stabilization expected once these activities normalize.
The company also reported a 3% reduction in its gross debt level versus 2022. The asset portfolio totals 25,396 million euros, comprising 10,277 million tied to financial assets and 15,119 million in real estate assets, with overall assets approaching 30,353 million euros.
Land, tertiary assets and loan management
The semi-annual report highlights land development projects managed in collaboration with Serviland. These efforts have reached 355 cases, with 311 under active urban management and 44 in the process of commercialization.
On land sales, activity for the period reached 1,226 units, down 8% from the same period in 2022. The decline in land transactions outpaced the broader market downturn, which saw land activity fall by 21% in the first half of 2023.
In the tertiary assets segment, 1,438 units valued at 90 million euros were recorded, an 8% decrease from the previous year. In the first six months of the year, income from loan management and disposal reached 317 million euros, down 8.7% from the same period in 2022.