AEDAS Homes, a benchmark residential developer in Spain, has presented the strongest results in company history and in the current real estate cycle at its Annual General Meeting corresponding to fiscal year 2022/23 (from 1 April 2022 to 31 March 2023), as reported by David Martínez, CEO of AEDAS Homes.
Mr. Martinez began by covering the key financial achievements in the 2022/23 fiscal year, with the company reporting a total net profit of €105 million after generating €920 million in revenue and a gross margin of 26.2%—€241 million—which translated into an adjusted EBITDA of €164 million, equivalent to 17.9% of revenues.
“AEDAS Homes has delivered exceptional results which confirm the company’s industrial capacity and our team’s commitment and professionalism. This performance has allowed us to continue generating value for shareholders for the fifth consecutive year and reaffirm our leading position in the markets where we operate”, the CEO stated.
Record delivery levels
AEDAS Homes’ excellent financial results are rooted in the delivery of 3,544 homes, a record number in the current real estate cycle in Spain, coming from the company’s Build to Sell (2,730 units), Build to Rent (610) and Real Estate Services (814) lines, making AEDAS Homes a leader in most of the regions where it operates. “This milestone confirms the company’s extraordinary industrial capacity, which in just six years has become the platform that delivers the most homes in the country”, Mr. Martinez pointed out.
Order Book valued at €1,229 million
Turning to operating figures, David Martínez stressed that the 2022/23 fiscal year “was characterized by excellent performance”, reflected by the 62 developments put on the market, with 3,375 units for a total value of €1,453 million. As of 31 March 2023, AEDAS Homes had 8,623 units on the market, valued at €3,205 million, and 5,740 units under construction, representing the bulk of the deliveries scheduled for the next two years.
Furthermore, at year end the company had 3,703 units in its Order Book, valued at €1,229 million, “providing strong visibility on revenues in the coming years”, Mr. Martínez remarked. He also pointed out the 11,194 active units as a measure of “the industrial capacity of AEDAS Homes”.
Real Estate Services, a complementary business line
The CEO also took time to explain to shareholders how the company’s Real Estate Services business line is providing end-to-end development services for institutional investors and family offices, saying “This is a complementary activity to our core development business and represents an additional revenue stream with minimal capital consumption”. He highlighted the Community of Madrid’s Plan VIVE scheme—the largest public-private partnership in Spain for the development of affordable rental housing —for which AEDAS Homes is developing nearly 3,600 units, with close to 2,500 now under construction.
€199 million in cash
Additionally, AEDAS Homes increased its available cash by 7%—up to €199 million— providing “a comfortable degree of liquidity”, according to Mr. Martinez, with net financial debt of €297 million, which represents a net Loan To Value (LTV) of 14.2% and leverage of 1.9 times net debt over EBITDA. “These leverage and liquidity levels allow us to maintain corporate ratings, issued by S&P, Fitch and Moody's, which are among the highest in the development sector in Europe”, he remarked.
ESG, an upwards commitment
In terms of ESG, the CEO presented the homebuilder’s progress on the sustainability front with solid figures: 59% of the developments completed in 2022/23 achieved an Energy Performance Certificate (EPC) of AA, and 62% of the developments activated in the fiscal year are targeting an EPC of AA. Regarding social commitments, he pointed out that “we have received the prestigious Great Place to Work® seal”, and in terms of corporate governance, he stressed the improvement in the company’s ESG risk rating from Sustainalytics, which improved from 15.7 to 13.2 points, indicating low risk.
High shareholder remuneration
In line with the excellent financial figures, AEDAS Homes is positioned as one of the most profitable listed companies in Spain after the Annual General Meeting approved the Board of Directors’ proposal for a total dividend of €2.15 per share out of the 2022/23 financial results, representing a payout ratio of almost 90% and and shareholder return of 11.8%.
Furthermore, and aiming to continue providing value to AEDAS Homes shareholders, the Annual General Meeting approved, also at the proposal of the Board, the amortization of own shares equivalent to 6.6% of total capital, which will have a positive impact on shareholder returns.
In total, AEDAS Homes has allocated €334 million to shareholder remuneration, taking into account dividend distributions and the amortization of own shares.
Poised to keep growing
Looking ahead, Mr. Martínez indicated that sales in the 2023/24 fiscal year could potentially be affected by the economic context and increases in interest rates. However, he highlighted the fact that “demand from customers in the mid-high segment and especially in coastal destinations, continues to show great resilience”, remarking that demand for new-build housing significantly outstrips supply. “For us, this reality is, without a doubt, an opportunity, but also a commitment based on our responsibility and our values—and an incentive to continue growing”.
The CEO concluded his speech with a clear message: “We are prepared to make the most of market opportunities and to keep growing, with enthusiasm and the potential to aspire to much more—we are up for this challenge.”
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