Sol de Llevant (Palma de Mallorca)
Trading update 3Q2023
October 25th, 2023
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2.
Agenda
Table of Contents
1. Highlights
2. Business Update
3. Closing remarks
Today's Presenters
Jorge Pérez de Leza | Borja Tejada | Juan Carlos Calvo |
CEO | CFO | Strategy & IR |
3.
Nieremberg 14 (Madrid)
1. Highlights
Highlights
Market context
MVC
operations
Financials
Housing demand is holding up
- Good tone in residential demand, despite higher mortgage rates and a volatile macro context
Solid operational performance
- 3Q is our strongest quarter in pre-sales so far this year (+37% YoY), despite the usual seasonality
- Backlog continues to increase: +13% vs Dec22, with a 2.9% higher avg. selling price
- Push on new construction starts in 3Q: 949 units started in the quarter and 1,527 in 9M
- Land sales: binding contracts are gradually transforming into notarial sales, as expected
New dividend in December, based on good cashflow visibility
- Confirmation of cashflow targets for the full year: €100m to €150m
- Proposed dividend of €0.33 p.s. in December, represents a 10% total yield for the year 2023(1)
- 4Q will be the strongest quarter of the year in both residential deliveries and land sales
- Gross development margins holding up (22.4% in 9M23), guidance remains at low-20s%
Notes: | 5. |
(1) Calculated over share price at the beginning of the year 2023 (€6.37/sh) |
La Sínia (Martorell, Barcelona)
2. Business Update
Key operational data
as of September 30th, 2023
Active | Construction |
projects | |
Sales Backlog (1)
3,591 | €1,148m | 4,650 | units under (3) | |||
Sold units | €320 k/unit ASP | (2) | ||||
construction | ||||||
Under commercialization | 89 | underdevelopments | ||||
6,728 | €347 k/unit ASP (2) | |||||
units | 121 projects | construction (3) | ||||
Active units | ||||||
7,754 | 141 active projects | |||||
units |
Notes:
- Defined as cumulative pre-sales (reservations + contracts) minus deliveries
- ASP = Average Selling Price
- Includes units with construction works completed
- Pre-salesin the period, net of cancellations
Deliveries /
Sales
982 units delivered
in the period
€294 k/unit ASP (2)
1,402 units
pre-sold(4)
in the period
€317 k/unit ASP (2)
Land portfolio
Land Sales
€13.1m in P&L revenues €41.3m Total binding
contracts
Land Purchases
€26m in 9M23
~28.2k
Residential units in land bank
Financials
€315m
Net debt
€183m
Total cash
€101m
Unrestricted cash
12.5%
LTV ratio
7.
Pre-sales
Continued positive demand dynamics in 3Q
Net pre-sales: increase in volumes in 9M
# units
Pre-sales per quarter (# units) | ||||||||
1,341 | 1,402 | |||||||
178 | ||||||||
BTR | ||||||||
568 | 494 | |||||||
412 | 425 | 483 | ||||||
361 | 318 | |||||||
BTS | ||||||||
9M22 | 9M23 | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 |
+5% YoY | +37% YoY |
Monthly absorption rate (1)
5%
4%
3%
2% | Average | ||||||||||||||||||
2019-2023 | |||||||||||||||||||
1% | |||||||||||||||||||
0% | |||||||||||||||||||
1Q19 | 2Q19 | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | 4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 | 2Q23 | 3Q23 | |
2.4%
in 3Q23
ASP of €317k/unit
In 9M23 pre-sales
Positive demand dynamics
3Q, the strongest quarter in
pre-sales so far in 2023, despite usual seasonality
Notes:
(1) Calculated as monthly net presales divided by average number of units in commercialisation, including both sold and unsold units
8.
Residential deliveries
On track to meet FY23 targets
9M23 deliveries: increase in ASP and gross margin
Revenues | €346m | €289m |
1,400 | ||
1,200 | 1,327 | |
1,000 | ||
800 | 982 | |
600 | ||
# units | ||
400 | ||
200 | ||
0 | ||
9M22 | 9M23 |
Gross | 21.2% | 22.4% |
Margin | ||
ASP | €260k/unit | €294k/unit |
+13% YoY
Deliveries per quarter (2023)
410
331
241
1Q23 | 2Q23 | 3Q23 |
Includes delivery of two BTR projects in Mallorca (204 units)
Confirmation of FY targets
- High concentration of deliveries in 4Q this year due to the calendar of project completions
- As of September, >800 units are already sold and built, pending delivery
9.
Operational activity
Mid-term objective of >2,000 units p.a.
Improved operational metrics
Operational KPIs are a good indication of revenues for the next ~3 years
✓ Future revenue of €1.1bn, with ASP | ||||||||||||||||
3,591 | ||||||||||||||||
Pre-sales | 3,171 | of €320k per unit (+2.9% vs Dec22) | ||||||||||||||
3,033 | ||||||||||||||||
backlog | ✓ Includes 4 BTR projects (386 units) | |||||||||||||||
(units) | in Valencia and Seville | |||||||||||||||
FY21 | FY22 | 9M23 | ||||||||||||||
✓ Indicates potential deliveries within | ||||||||||||||||
4,650 | ||||||||||||||||
Units under | 4,007 | 4,101 | the following 24 months | |||||||||||||
construction | ✓ 1,527 units started construction in | |||||||||||||||
9M23 (949 in 3Q) | ||||||||||||||||
FY21 | FY22 | 9M23 | ||||||||||||||
6,235 | 6,728 | ✓ 1,471 commercialization starts in | ||
Units in | 9M23 | |||
5,555 | ||||
commerciali- | ✓ Potential revenues of >€2.3bn, over | |||
sation | the next 36 months | |||
FY21 | FY22 | 9M23 |
Presales coverage
(% of target deliveries already pre-sold)
2023E 2024E 2025E
Construction coverage
(% of target deliveries already under construction)
2023E | 2024E | 2025E |
10.
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Metrovacesa SA published this content on 25 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 October 2023 07:10:04 UTC.