Neinor has delivered 2,397 housing units with strong underlying gross margin of 28.5% and reported FY24 adj. Net Income of €69mn, a 5.9% beat to the Company’s guidance
High margins and solid cash flow generation took Adj. Net Debt to €238mn by year-end, maintaining a conservative LTV of 16.2%
The Company will submit to the next AGM the approval of €125mn in shareholder distributions for FY25 – aiming to distribute a total of €188mn for the following 12-months (16% yield)
Neinor has significantly accelerated the ramp-up of its Asset Management business with €1.2bn AUM, and is under negotiations for land acquisitions of up to c. €300mn
The Company is envisaging a ‘positive outlook’ for 2025 and is targeting to invest €100-200mn in new land acquisitions
Madrid, 26 February 2025 – Neinor Homes ("Neinor") has published consolidated accounts for fiscal year 2024 and announced it has notarized a total of 2,397 housing units. Total revenues for 2024 reached €502mn with the following breakdown:
The core development business and ancillary services contributed with €488mn or 97%;
The fees from asset management business reached €10mn;
Plus, the company collected €4mn in rents from its yielding rental portfolio;
Furthermore, Neinor notarized 351 rental units to both institutional investors and retail clients for a total consideration of €60mn that were recognized in its P&L directly through the fair value accounting method.
After several years successfully navigating cost inflationary pressures in construction and higher financial costs, Neinor continues to demonstrate its capacity to protect its profitability and recorded one of its highest gross margins of 28.5% with a gross profit of €143mn.
EBITDA before non-recurring expenses, were €102mn, with a 2.1% beat versus guidance of €100mn. With this number, it is important to highlight the positive impact from Neinor’s Asset Managment business with the aforementioned €10mn in fee-based revenues collected from its JVs with Bain, Avenue, Orion, Axa, HMB and Renta Garantizada. Added to this, there was a positive capital gain of €8.3mn from the acquisition of a 10% stake in Habitat at a 30% discount to NAV, as well as €4.3mn in JV profits recorded in this vehicle during the fourth quarter of the year. Neinor has recorded adjusted net profit of €68.8mn (EPS of €0.92/sh), a 5.9% beat to its guidance of €65mn.
As of 31 December 2024, the total land bank managed by Neinor stood at 23,000 housing units of which 12,000 are fully owned by the Company, while the remainder is the Asset Management business. Furthermore, during 2024, Neinor recorded a total land investment of €769mn between its own acquisitions and JV investments. The GAV (Gross Asset Value) appraisal by Savills and CBRE by year end stood at €1,465mn (2023: €1,459mn).
On the balance sheet, Neinor ended the period with an adjusted net debt position of €238mn, representing a conservative loan-to-value (LTV) ratio of 16.2%, with a record cash position of €368mn. This net debt figure already reflects the shareholder distributions of €62.2mn that took place on 24 January 2025. Including the other distribution that is expected to take place on 14 March, the LTV would have been 20.5%.
As highlighted in the trading statement published on 20 January, commercialization activity remained highly dynamic throughout the year with Neinor managing total sales of €840mn, of which €176mn belong to the JVs with Orion, Axa and Bain Capital. The total orderbook at the end of the period was 3,627 units valued at €1,291mn in future revenues for Neinor and its strategic partners.
2024 marked a significant leap forward for Neinor in executing very successfully its Strategic Plan (2023-27)
The second year of executing Neinor’s Strategic Plan, published in March 2023, brought significant progress on the capital rotation and monetization of the build-to rent portfolio, the refinancing of its corporate debt, which will allow Neinor to be more flexible on its capital allocation strategy going forward, more visibility on the shareholder remuneration program and a large increase and acceleration in Neinor’s Asset Management business, as part of its equity efficient growth strategy.
Over the last two years Neinor has sold 6 BTR projects to institutional buyers such as Kygal, Savills IM, Harrison Street and DeA Capital, CBRE IM, Avalon Properties and Round Hill Capital. These sales have generated revenues of approximately €275mn closing deals with institutional investors in the provinces of Madrid, Guadalajara, Valencia, and Málaga.
In late October, Neinor returned to the public debt markets with the issuance of a €325mn Green Bond at a fixed cost of 5.875% and extending maturities from 2026-27 to up to 2030. These proceeds were used to refinance existing corporate debt of €175mn and the remainder to accelerate land acquisitions.
On its shareholder remuneration plan, the Company continues to make very good progress towards its €600mn 5-year objective and it has executed distributions totalling €263mn. Given the strong cash position and business plan visibility for upcoming years, today the Board of Directors, has submitted to the next annual general meeting (AGM) the approval of an additional €125mn in four even payments. With these, and the €62.2mn pending from FY2024 target, the Company will reach total distributions of €450mn, representing 75% of the company’s five-year objective and 100% of its FY25 target. Since June 2023, Neinor has signed six build-to-sell (BTS) agreements with renowned investors such as AXA IM Alts, Orion Capital, Urbanitae, Avenue Capital, Bain Capital, and Ameris Capital, raising €985mn through these partnerships. Of this, approximately 75% (€744mn) has been deployed in a portfolio to develop 6,227 newly built homes through to the end of the decade.
In July 2024, Neinor signed another agreement with Octopus Real Estate to invest €200mn in the emerging independent senior living segment. More recently, in February 2025, Neinor signed its 8th JV vehicle with Santander Alternative Investments to enter the Flex Living segment and develop 160 apartments in Madrid.
Raising outlook for Spanish residential from ‘constructive’ to ‘positive’, as the sector is expected to continue to improve during 2025
Since 2023, GDP growth expectations for the Spanish economy have been revised successively upwards. In 2024, initial GDP growth expectations pointed to a 2% increase, recent data published by Eurostat confirmed a yearly growth of 3.2%, where Spain continues to outpace the Euro Area which exhibited a mere 0.8% expansion. For 2025, GDP growth in Spain is expected to moderate towards 2.3%, still ahead of Euro Area’ 1% growth (source: Bloomberg consensus).
Underpinning this performance has been private consumption growth benefiting from a strong job market that continues to pull ahead with approximately 500,000 new jobs created in the year reaching a record high in number of registered contributors to Social Security in Spain of 21.3mn. The unemployment rate decreased to 11.5%, from 12.2% the previous year.
Adding to the positive momentum in the jobs market, throughout the year Spanish households have continued to strengthen their balance sheets with historically high levels of savings reaching 13% and continuous improvement in the sentiment and confidence indicators. In parallel, during 2024, the European Central Bank has confirmed the shift in the interest rate cycle with a reduction in reference rates from 4% to 2.75% in January 2025. Currently, market consensus is expecting interest rates to stabilize at levels around 2%.
These factors have translated positively into housing demand, with the number of housing transactions in 2024 reaching 641,919, annual growth of 10%. New housing transactions reached 135,052, with an annual growth of 23% and representing a 21% market share, a 2.2 percentage point increase versus the previous year. New housing starts are increasing 14% until September to 84,055 units, and 112,073 units on an annualized basis.
Borja García-Egotxeaga, CEO of Neinor Homes, commented: "Since 2014, the Spanish housing market has built up a housing production deficit of more than 1 million homes, representing approximately 10 years of annual production at current levels. At Neinor, we have never been better positioned to capture this sustainable growth opportunity and deliver much needed new homes, thanks to our first-class execution track record, our industry leading margins and the significant growth within our Asset Management business, which is at the core of our equity efficient strategy We look to the future with increasing confidence and optimism.”
Jordi Argemí, Deputy CEO and CFO of Neinor Homes, said: "2024 was a transformational year marked by the accelerated ramp-up of Neinor’s Asset Management business. As part of our equity efficient strategy, we executed the largest M&A transaction in the sector through the acquisition of a 10% stake in Habitat Inmobiliaria and signing an Asset Management agreement with Bain Capital worth €700mn. This was the largest deal in the Spanish market since we acquired Quabit in 2021 and has enabled Neinor to strengthen its leadership position in the market. In parallel, in 2024 we returned to credit markets with the issuance of a €325mn Green Bond to refinance Neinor’s corporate debt, extend maturities and add more flexibility to our capital allocation in order to accelerate land acquisitions in the coming years. Neinor is really well-placed to create and deliver enhanced value to our shareholders and wider stakeholders.”
Neinor Homes is the leading residential property developer in Spain, with a land bank to develop c12,000 homes, and a GAV to December 2024 of €1.5bn. This land bank is located in some of the fastest growing regions with the best economic fundamentals in Spain: Madrid, Western and Eastern Andalusia, Levante, Basque Country and Catalonia.
Neinor is a fully integrated and well-established residential platform of scale in Spain, covering the entire development value chain from land buying, planning and urban management, product design, delegated development and construction, sales and marketing and rentals. We are committed to creating and delivering attractive risk adjusted returns for shareholders through our disciplined capital allocation strategy and our excellence in operations and risk management.
We are the only listed residential property developer with a multi-sector strategy to market in Spain, and our strategies include Build-to-rent (BTR); Build-to-sell (BTS); and the largely untapped senior living rental market in Spain, which we are progressing.
Neinor’s operational excellence, investment strategy and results achieved since 2019 have enabled us to deliver on our 5-year business plan, launched in March 2023, in a sustainable and capital-efficient manner. This plan combines a €600 million shareholder remuneration plan and an investment of €1 billion in new opportunistic land acquisitions, half of which are expected to be undertaken in joint ventures with strategic partners through co-investment agreements, with a +20% IRR target.
We offer shareholders attractive risk adjusted returns in a country where there are strong and sustainable supply and demand fundamentals and supported by a resilient macroeconomic environment and outlook. Spain remains one the most attractive and safest residential markets worldwide, with one of the lowest ratios of new supply per capita globally since 2013.
