AEDAS Homes S.A.U. :AEDAS Homes earned €5.5 million in the first 9 months of 2018
AEDAS Homes earned €5.5 million
in the first 9 months of 2018
- The homebuilder's gross margin is 29%, at the higher end of guidance
- The company reported revenues of €55.4 million on the delivery of its first housing units and the sale of non-strategic land
- The developer has confirmed solid progress and the execution of its business plan: it has already delivered 85% of the units slated for 2018 and sold 74% of those planned for 2019
November 2018- AEDAS Homes, a leading developer in the new real estate cycle in Spain, earned €5.5 million of net income in the first 9 months of 2018, compared with €3.6 million for the first half of the year. The company reported these figures to the CNMV (Spanish Securities Market Commission), after having become, in the previous quarter, the first among its peers to announce profits, just eight months after its IPO and earlier than expected. The parent company's net income, after deducting minority interests, was €4.2 million.
Between January and September, AEDAS Homes reported revenues of €55.4 million, with 86% coming from the delivery of housing units and 14% from the sale of non-strategic land. The gross margin for these transactions was 29%, a figure at the upper end of the estimated range in the IPO, thereby confirming AEDAS Homes as an attractive investment option.
The company has also managed to significantly lower its cost of debt by diversifying its financing sources. Additionally, the company issued €26 million worth of promissory notes to finance the company's working capital, obtained a €150 million corporate loan that has been only partially drawn down, and repaid a portion of its higher-cost debt, resulting in 1.88% as the current cost of debt. On September 30, 2018, AEDAS Homes had a net financial debt of €46.9 million.
According to David Martínez, CEO of AEDAS Homes, "The company is continuing to beat targets and deliver higher than expected margins, which allows us to be optimistic as to the coming months and continue carrying out our business plan."
Executing the business plan
The company continues to report excellent visibility on its business plan. It has already delivered 85% of the homes scheduled for 2018 and sold 74% of those slated for delivery in 2019, and construction works remain on track, thereby confirming that AEDAS Homes is reaching its stated targets.
Between July and October of this year, the developer put 992 new homes on the market, with a GDV of €317 million, marking a significant acceleration in the ramp-up phase. Since it began operating in 2017, AEDAS Homes has launched a total of 3,982 units, with a GDV equivalent of €1.46 billion.
In terms of sales, as of October 31, the company had sold 1,852 units, with an estimated GDV of €648 million. By region, sales were very strong in the Center (29%), followed by the East and Balearic Islands (26%), and Catalonia (21%).
As of October 31, the company had 2,260 units under construction, out of a total 2,638 units with planning permission already secured (including completed units). Planning permission for an additional 3,009 units has been requested and is expected to be granted within the next eight months, further strengthening confidence that the company will continue to confirm guidance for 2018, 2019 and 2020. It is worth noting that construction works on the Nou Eixample Mar development in Vilanova i la Geltrú (Barcelona) were extremely efficient and completed ahead of schedule, making it possible to move up the delivery of some units to the end of 2018, instead of in 2019 as planned.
"All of these numbers," explains Martínez, "show the company's tremendous operating capacity, thanks to our dedicated team of professionals and their extensive industry experience."
Land bank for 14,521 homes
AEDAS Homes has updated the figures for its land bank, which analysts classify as the best in Spain in terms of quality. The developer has a portfolio of land for up to 14,521 homes; approximately 90% of the plots are classified as ready-to-build. 35% of these assets are located in the Center region, 18% in the East and Balearic Islands, 16% in Costa del Sol, 16% in Andalusia and 15% in Catalonia, the five most dynamic residential markets in the country.
About AEDAS Homes
The developer AEDAS Homes became a listed company on October 20, 2017, in Madrid, with a market capitalization of over €1.5 billion. AEDAS is an industry leader at the national level and plays an important role in the new cycle of the Spanish real estate sector, which must be marked by professionalism and an adherence to rigorous standards.
AEDAS Homes has the highest-quality land bank in Spain, according to analysts, since most of this land is classified as ready-to-build. The company has a portfolio with more than 1.5 million square meters to build over 14,500 homes in the nation's key markets and their surrounding areas (both in terms of real estate and finance): the Center, Catalonia, the East and Balearic Islands, Andalusia and Costa del Sol.
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