AEDAS Homes is reporting the strongest annual results in company history for the 2022-23 fiscal year ended 31 March 2023. The company lifted net profit by 13%, to €105 million, after generating record revenues of €920 million, up 20% over last year, and adjusted EBITDA of €164 million, up 10%.
“For the fifth year in a row, we have achieved our goals, generated value throughout the cycle, and consolidated our leadership role in the development sector. In this last year, we have broken a record in the current real estate cycle, with 3,544 homes delivered”, pointed out David Martínez, CEO of AEDAS Homes.
Financial strength and profitability
Mr. Martínez highlighted the company’s solid financial footing reflected in €245 million in liquidity, in addition to several additional undrawn liquidity lines. Likewise, the company has a diversified debt structure, mostly with long-term maturity and nearly 65% of its debt at a fixed rate.
The company continues to have very stable levels of leverage—in line with the seasonality of the business marked by aconcentration of deliveries at the end of each year—which consolidates a credit strength endorsed by the three main rating agencies.
“We are focused on optimizing ROE”, Mr. Martinez stressed, highlighting the fact that ROE stood at 10.8%, up more than one full point over last year. The homebuilder’s CEO pointed out the initiatives the company is focusing on to boost profitability, such as broadly implementing Modern Methods of Construction (MMC) and the creation of its high-quality, very liquid landbank underpinned by a disciplined investment strategy.
Mr. Martínez emphasized the company’s comfortable land position, with a landbank that covers development activity for the next five years in Spain’s most dynamic markets and focuses on the mid to high segment of the market. “This is a demand that we know well and that continues to show resilience,” explained the CEO.
Real Estate Services
In its strategy to protect and boost the company's profitability, AEDAS Homes is strengthening its Real Estate Services division, which it has been growing and consolidating for two years, anticipating market trends and needs. In FY 2022-23, of the 3,544 homes delivered, 814 units corresponded to this asset-light Services line—420 through a co-investment structure, and 394 through an end-to-end project management structure—thus consolidating its position as the leading industrial partner in Spain for third parties seeking residential development services.
Attractive shareholder remuneration
On the back of these excellent financial results, at the upcoming Annual General Meeting scheduled for 20 July 2023, the AEDAS Homes Board of Directors will propose a total dividend distribution of up to €94 million, equivalent to €2.15 per share. The company, which already paid €1.00 per share as an interim dividend on 31 March 2023, will pay a complementary dividend of €1.15 per share at the end of July. This puts the payout ratio for the total dividend at close to 90% of net profit.
Strong visibility on future revenues
Looking down the road, Mr. Martínez expects that AEDAS Homes will continue to grow, despite the volatility characterizing the current context, explaining “Spain has an economy with solid sector fundamentals that support long-term growth. This scenario will allow us to continue fulfilling the commitments made to our customers and shareholders”.
As of 31 March 312023, the Spanish homebuilder’s Order Book stood at 3,703 units—3,136 Build to Sell (BTS) and 567 Build to Rent (BTR)—and was valued at over €1.2 billion, with 75% of its FY 2023 and 32% of its FY 2024 deliveries already forward sold, thus providing very strong visibility on revenue generation over the next two years. Likewise, AEDAS Homes had 8,623 units on the market at the end of March and 5,740 under construction, confirming the company's management and execution capabilities.
“Despite these truly historic results, we closely follow new market dynamics, seeking and identifying new projects such as the development of new alliances for living projects with institutional investors and family offices—projects with which we can respond to new social and residential needs, including public-private partnership projects. AEDAS Homes will keep evolving and will continue to spearhead transformation in the residential development business”, Mr. Martinez concluded.