24 Enero, 2023

Neinor Homes delivers 2,743 homes in FY22 and meets its annual target

During the fourth quarter, Neinor maintained a strong sales performance reaching 582 units

noticia

During the fourth-quarter Neinor traded well to deliver 1,195 homes to its clients, reaching a total of 2,743 for the full-year, in line with its objectives (2,500-3,000 units). Following the inclusion of fourth-quarter deliveries, the company’s FY22 revenues surpassed €750mn.

Neinor’s build-to-sell (BTS) product accounted for approximately 92% of total annual deliveries, while build-to-rent (BTR) made up the remaining 8%. In its BTR business, Neinor has delivered its second purpose-built building – Sky Homes in Valencia, which totals 213 units.

Commercial activity has maintained a good performance between October and December with 582 units pre-sold during the period. Despite house price increases of 5% throughout FY22, Neinor has maintained its net absorption rate of 5.7%, still above business targets and pre-pandemic levels.

Neinor Rental’s yielding portfolio, which consists of 542 units, has finished the year with 96% occupancy and rental growth of 14.4%. This includes the 156 contracts renewed over the period. This reflects the continued strength of the Spanish rental market where demand significantly outstrips supply.

In December 2022, Neinor announced a major milestone – its first sale of a BTR building (Hacienda Homes). The sale demonstrates the growing demand for BTR assets in Spain where Neinor enjoys a leadership position with approximately 3,000 homes to be delivered in the coming years. According to market sources, the pipeline of BTR product to be delivered in Spain stands at approximately 25,000 homes.

EBITDA and Net Income stands at €146mn and €95mn for the full-year respectively. Neinor will publish its FY22 annual results on 22 February after market close.

Borja García-Egotxeaga Neinor Homes’ CEO commented: “We enter 2023 with a cautiously optimistic outlook backed by the strong fundamentals of the Spanish residential sector. At year-end, Neinor had already pre-sold c.65% of its 2023 target deliveries and, unlike other countries, we don’t expect the price of new homes to decrease in the coming years. Since 2008, the Spanish home building sector has significantly reduced leverage across households, financial institutions and developers and today, this is a key differentiating factor that will play to our advantage.”

Jordi Argemí, Neinor Homes’ CFO and Deputy CEO also commented that: “Despite the macroeconomic uncertainty created by geopolitical tensions and the unprecedented change in monetary policies worldwide, we are pleased to have met our target yet again. We go into 2023 with a strong cash position, with no refinancing requirements until 2026 and with interest rate risk hedged above 2% until 2026.”