The first payment, amounting to €62.5mn (€0.83/sh), will be made on January 24, 2025, while the second payment of €62.5mn is expected to take place in March 2025
For the first dividend, the last trading day entitled to receive the payment is January 21, 2025
In total, over the next 15 months, the company plans to distribute €250mn to its shareholders – a 21% yield at current prices
Madrid, 20 December 2024. - Neinor Homes ("Neinor"; HOME SM), the leading listed residential property developer in Spain, announces that the first payment of the distributions approved at the Extraordinary General Shareholders' Meeting held on December 18 will be made on January 24, 2025.
The last trading day for shares with the right to receive the dividend for the first payment is January 21, 2025. The second payment is expected to take place in March 2025.
The total dividend, amounting to €125mn and representing a total return of 11%, will be distributed in two equal payments of €62.5mn. Each of the two payments represents a gross payment of €0.83/sh, which equates to €0.8217/sh net.
The two payments will be made through capital reductions with the return of contributions to shareholders, following the same structure implemented in previous years. Consequently, they will be subject to a 1% tax on the value of the returned contributions, which Neinor Homes will withhold, self-assess, and remit to the Bizkaia Tax Authority.
Over the next 15 months, Neinor expects to distribute €250mn, equivalent to €3.32/sh (21% yield)
After distributing the €125mn (€1.66/sh) approved this week at the Extraordinary General Shareholders' Meeting, Neinor will have successfully completed the distribution of €200mn to its shareholders for the 2024 fiscal year, thus meeting the objectives of its 2023-2027 Strategic Plan for the second consecutive year. In addition, this will bring Neinor to 54% of its target to distribute a total of €600mn to shareholders by 2027, as outlined in its Strategic Plan.
Furthermore, for the 2025 fiscal year, Neinor expects to distribute a total of €125mn by the first quarter of 2026 (€1.66/sh).
Borja García-Egotxeaga, CEO of Neinor Homes, comments: "As part of our 2023-27 Strategic Plan and the shareholder remuneration objectives, the next 15 months will play a key role with total distributions of €250mn. Additionally, I would like to highlight the importance of our equity efficient growth strategy and earnings growth expected in the coming years as key elements to achieve our goal of improving shareholder returns to 14-15%."
Jordi Argemí, Deputy CEO and CFO of Neinor Homes, explains: "As of today, in addition to having a solid balance sheet and low leverage, we already have excellent operational and financial visibility for 2024-25, with the goal of distributing €250mn to our shareholders in the next 15 months. Moreover, as in the last two years, we continue to work to bring forward cash flows to our shareholders in order to generate value for them and accelerate the process of optimizing our balance sheet."
Neinor Homes is the leading residential property developer in Spain, with a land bank to develop c12,000 homes, and a GAV to June 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 2007.
