AEDAS Homes consolidates its solvent position by demonstrating its execution capacity and excellent sales coverage
AEDAS Homes consolidates its solvent position by demonstrating its execution capacity and excellent sales coverage
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- AEDAS Homes reported €31.6 million in net profit and €311.5 million in revenue in 2019.
- As of 26 March 2020, the homebuilder’s Order Book of 3,074 units stands at €1.026 billion.
- David Martínez, CEO of AEDAS Homes: “2019 was a solid year for the company, in terms of both operating and financial results”.
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March 2020.- Spanish residential developer held its Annual General Meeting in compliance with strict health and safety measures to safeguard against Covid-19 and urged shareholders to exercise their voting rights electronically. David Martínez, the homebuilder’s CEO, presented the company’s solid 2019 operational and financial results and shared a message of confidence in the face of the global health crisis.
“AEDAS Homes is well prepared to face this unprecedented situation. 2019 was a solid year for us in terms of operating and financial results and, although it is still too soon to assess the effects of the Covid-19 health crisis, we have activated a capital preservation strategy to guarantee the continuity of our business”, Mr. Martínez explained to the company’s shareholders. In his speech at the AGM, which was broadcast via live streaming, he reported that all AEDAS Homes staff across Spain were safe and fully operational while working remotely.
"At present, our top priority is to safeguard the health of our employees, service providers and customers”, Mr. Martínez explained, highlighting that the company had offered its customers the option to defer their monthly payments in April and May.
Consolidated income statement
The CEO went through the key 2019 operating and financial figures, drawing attention to the €311.5 million in revenue the company brought in and the €31.6 million in net profit it generated.
Debt and available cash
Another one of the company's strengths that Mr. Martínez pointed out during the streamed meeting was the company’s financial situation, which will allow it to face the coming months from a position of strength. This solidity is reflected in the company’s available cash and in its Loan-to-Value (LTV), that is, its net financial debt divided by its total GAV; at year-end, the company’s LTV stood at only 11%.
Land bank
In 2019, AEDAS Homes further grew its land bank by investing in land for up to 1,767 new-build homes, as well as maintaining call options for an additional 1,465 units. At year-end, the homebuilder had a land bank to develop up to 15,426 units concentrated in the most sought-after areas in the residential markets with the greatest demand in Spain. The company’s 2019 investments further solidified the strength of its portfolio, considered as the best in the sector by independent experts.
Deliveries
As of 31 December 2019, construction was complete and all homes (1,055) slated for delivery had obtained Final Construction Certificates. However, due to a change in the Mortgage Law that had taken effect earlier in 2019 and which introduced an additional series of administrative steps in the notarization process, many closings were delayed by several weeks. As a result, at year-end, 833 units had been delivered, with the 222 remaining units sold and scheduled for delivery in the first months of 2020.
NAV per share
The company’s Net Asset Value grew by 3.3% in 2019 and at year-end stood at €34.80 per share.
The company reported an increase of 11% in Gross Asset Value, bringing it to €1.962 billion at year-end. Primary drivers of this increase in GAV were a significant increase in the number of works in progress and new land acquisitions.
More than 6,500 units launched
The CEO also underscored the company’s successful launch of 42 new projects in 2019, with a total of 2,635 units, breaking ground on 2,228 units, and completing construction on 1,079 units. In total, the developer has now launched more than 6,500 units, and at the end of 2019, had 5,592 new-build homes—4,198 of which were under construction—on the market for €1.960 billion.
All the items on the meeting’s Agenda were approved by a comfortable majority, including the proposal to change the fiscal year, which means that it will now run from 1 April to 31 March. "The aim of this change is to adapt the fiscal year to the seasonality of the business," explained the CEO.
Sales coverage as of 26 March 2020
With regard to visibility over the business, the homebuilder’s Order Book as of 26 March 2020 stood at €1.026 billion (3,074 units). This means that in terms of the recently approved new fiscal year, the company has 81% of its sales for 2020 covered (which will run April 2020 to March 2021), 42% of the following year covered (April 2021 to March 2022), and even 8% of the year after that covered (April 2022 to March 2023).
Mr. Martínez concluded his address to the company’s shareholders by thanking everyone for their support in such a complex situation, saying: “I’d like to take this opportunity to thank all of the employees at AEDAS Homes, our customers, our service providers and our investors, for your trust. It is time to stay the course and take the long view. This difficult time will eventually pass, and we will emerge stronger because of it”.
About AEDAS Homes
Residential developer AEDAS Homes became a listed company in Madrid on 20 October 2017, with a market capitalization of over €1.5 billion. The company is one of Spain’s leading homebuilders and plays a key role in the new cycle of the Spanish real estate sector, a cycle which must be marked by professionalism and adherence to rigorous standards.
To date, AEDAS Homes has put over 6,500 units on the market and has a fully-permitted landbank of over 1.9 million sqm—the highest quality landbank in Spain, according to market analysts—to build over 15,500 homes in the nation’s key real estate markets and economic centres, and their surrounding areas: the Centre (Madrid), Catalonia, the East & Balearic Islands, Andalucía and Costa del Sol.
