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    MVC   ES0105122024

METROVACESA S.A.

(MVC)
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Delayed Bolsas y Mercados Espanoles  -  11:38:00 2023-01-27 am EST
6.730 EUR   -1.61%
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Metrovacesa S A : increases its net profit by 64.6% and announces the distribution of 159 million euros in dividends

10/27/2022 | 04:14am EST

6 mins reading time

27 October, 2022

Metrovacesa increases its net profit by 64.6% and announces the distribution of 159 million euros in dividends

6 mins reading time

27 October, 2022

  • Metrovacesa has decided to pay a dividend of 1.05 euros per share, equivalent to 159 million euros, to be paid in December, subject to the approval of an Extraordinary General Meeting in November.
  • In the first nine months of the year Metrovacesa posted revenues of 351.8 million euros, with a 5.0% growth, and increased its EBITDA by 16.4% compared to the same period of the previous year, to 34.1 million euros.
  • It has delivered 1,327 homes in this period, 22% more than the previous year, approaching its annual target of between 1,600 and 2,000 homes, of which 95% are already pre-sold and 100% of the works have already been completed.
  • Demand for new housing continues to be good, with pre-sales of 1,341 homes in the nine months, similar to the previous year excluding build-to-rent operations, and with an average price of 323,000 euros per home, 16% above the average price of the previous year.
  • Maintains its operating and future launch plans, with a high level of sales coverage for deliveries over the next two years, which exceed those of the previous year, with 75% and 50% of deliveries for 2023 and 2024, respectively, already pre-sold.

Madrid, October 27, 2022. Metrovacesa, a leading real estate developer in Spain with more than 100 years of history and 155 projects under development nationwide, has presented its financial results for the third quarter of 2022. The developer continues to make progress in meeting its operating and financial targets for the full year and beyond, demonstrating the strength of its business model and its financial robustness, despite the uncertainty of the current macroeconomic environment.

During the first nine months of the year, the developer increased its net profit to 16.2 million euros, 64.6% more than in the same period of the previous year. This figure was supported by an increase in the volume of housing deliveries, which rose by 22%, totaling 1,327 homes between January and September. Likewise, the company's EBITDA increased by 16.4% with respect to the same period of the previous year, reaching 34.1 million euros, and it closed the period with revenues of 351.8 million euros, a 5% increase.

The developer's good operating performance throughout the year, together with its cash generation profile, has enabled it to close at September 30, 2022 with a cash position of 287 million euros on its balance sheet.

Fulfilling its strong dividend profile

The company's good operating performance, combined with its strong financial position, has enabled it to decide to pay out a dividend of €159 million, subject to the approval of the General Meeting, convened for November 29. This proposed new dividend will amount to €1.05 per share, the highest figure since its IPO in 2018. It represents a dividend yield of 17.2% at the current share price and, added to the €0.60 dividend paid last May, an annual yield of 27.0%.

This dividend distribution reinforces Metrovacesa's profile as one of the most attractive stocks in terms of shareholder remuneration. The payment will be made in December, and may be delivered either entirely in cash, or in a combination of company shares and cash, at the shareholders' discretion.

Metrovacesa closed September 2022 with a net debt of 151.5 million euros, which represents a loan to value or leverage ratio of 5.9%. After the expected dividend payment, the LTV ratio rises to 12% on a pro-forma basis, which continues to be a very prudent debt ratio, and one of the lowest in its sector, both in Spain and in other EU countries.

Robust visibility for housing deliveries over the next two years

Metrovacesa continues to take important steps in its operating activity to achieve the objectives set for the 2022 financial year as a whole, and has ample visibility for the 2023 and 2024 financial years. In this regard, the company expects to deliver between 1,600 and 2,000 homes this year, of which 95% are already pre-sold and 100% of the construction work has already been completed. In addition, at the end of September 2022, the company had an accumulated pre-sales portfolio of 3,047 units, which consolidates future delivery targets. Thus, with a view to 2023, projects are progressing according to plan and 75% of the homes to be delivered next year are already pre-sold, as well as more than 50% for those corresponding to 2024.

Despite the fact that the last few months have been marked by inflation and a macroeconomic environment of uncertainty and volatility, Metrovacesa considers that there is a favorable balance between supply and demand for new housing, although the average purchase decision times of customers are lengthening. The developer currently has 5,774 homes in the marketing phase, of which 1,635 units correspond to new launches during the first nine months of the year.

In terms of construction work, Metrovacesa continues to make progress in meeting the planned deadlines and currently has a total of 3,441 homes under construction. In the first nine months, the developer has completed work on 915 homes and plans to accelerate the start of work on new projects in the last quarter, with the goal of approaching 2,000 units started by 2022.

Jorge Pérez de Leza, CEO of the company, said, "Looking ahead to the next few months, marked by a challenging context and greater market uncertainty, the company is strongly prepared, thanks to the strong visibility of deliveries for the next two years, a fully rolled operational activity and excellent implementation in the markets in which we operate. We are moving ahead with our plans to launch new projects, although we will continue to be very cautious and adapt our strategy to the context and the market if necessary".

Key and flexible land dynamizer in an increasingly challenging environment

In recent months, the Metrovacesa team has made significant progress in the management of its land portfolio, which is allowing the use of land under management for new launches in the short term in key Spanish cities (Madrid, Barcelona, Valencia, etc.), which will enable the developer to optimize its product mix. Particularly noteworthy is the launch of different projects of considerable size and strategic nature in Madrid, where the demand for new housing continues to rise and Metrovacesa expects to launch close to 900 units in the next two years.

In this regard, this October saw the commercial launch of Mesena 80, a 155-home development in an area very close to the Arturo Soria neighborhood in the capital. In addition, during the first half of 2023, new developments are expected to be launched in some of the largest developments planned in the Community of Madrid, such as Arpo Pozuelo (256 homes), Los Cerros (1,550 homes) and Getafe - La Estación (417 homes). All of them will boost the supply of new housing in the capital and the surrounding areas, which has been very stressed in recent months due to the scarcity of projects. Metrovacesa's land management is bearing fruit and will help to boost the launch of new projects in the coming years and thus improve the supply available in key cities (Madrid, Barcelona, Valencia, etc.).

On the other hand, the developer has closed land sale agreements worth 30.2 million euros in the first nine months of the year, both commercial and residential and of a non-strategic nature for Metrovacesa.

Developments near you

Disclaimer

Metrovacesa SA published this content on 27 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2022 08:13:05 UTC.


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Financials
Sales 2022 554 M 602 M 602 M
Net income 2022 30,9 M 33,5 M 33,5 M
Net Debt 2022 272 M 295 M 295 M
P/E ratio 2022 32,4x
Yield 2022 20,1%
Capitalization 1 019 M 1 106 M 1 106 M
EV / Sales 2022 2,33x
EV / Sales 2023 1,99x
Nbr of Employees 203
Free-Float 7,15%
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Number of Analysts 7
Last Close Price 6,73 €
Average target price 7,40 €
Spread / Average Target 9,88%
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Managers and Directors
Jorge PÚrez de Leza Eguiguren Chief Executive Officer & Director
Borja Tejada Rendˇn-Luna Chief Financial Officer
Ignacio Moreno MartÝnez Chairman
Eduardo Carre˝o Chief Operating Officer
Beatriz Puente Ferreras Independent Director
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