- The homebuilder confirms its 2019 delivery schedule and has nearly €1 billion in sales, with a total of 2,500 units sold
- The company expects to bring in revenues of approximately €400 million in 2019, €707 million in 2020, and €828 million in 2021
- David Martinez, CEO of AEDAS Homes: “We are confirming our financial and operating targets for this year and for the next two”
.- AEDAS Homes, a leading residential developer in Spain’s new real estate cycle, is confirming guidance ahead of its Investor Day, and this is the key message it will be sharing with dozens of investors at a capital markets event being held today, 2nd July, in Madrid. The event will continue in Barcelona on 3rd July and in Palma de Mallorca on 4th July.
Working within the Investor Day theme of “Building on strong fundamentals”, AEDAS Homes will show how the cycle is currently evolving favourably thanks to a strong macroeconomic picture. Spain is in leading position in the Eurozone in terms of economic growth and job creation, while at the same time, it lacks enough new-build housing to meet demand, above all in the country’s most dynamic regions – Madrid, Catalonia, the East and Mallorca, Andalusia and Costa del Sol.
Between 2018 and 2033, the Spanish National Statistics Institute estimates that 1.78 million new households will be formed, which supports the need for an additional 120,000 new-build homes on an annual basis. This figure is far greater than the 50,000 units that are currently being completed, providing strong outlook on growth. With respect to AEDAS Homes, growth in the number of deliveries has been steadily increasing since the homebuilder started up, and all signs point to the company reaching cruising speed in 2022, when it starts delivering 3,000 new-build homes every year.
Cementing its leading position beyond its initial Plan
The homebuilder is also pursuing investments and new initiatives that will further cement its status as a leading homebuilder both now and in the future, beyond its 2017-2023 business plan. All the plots in its landbank are 100% fully-permitted – the best-quality landbank in Spain, according to sector analysts – which gives the homebuilder four years of visibility. The company has started turn-key Build-to-Rent developments and has created a new business line for homes built offsite, becoming a benchmark at the national level with six developments and a total of 162 high-end modular homes currently being manufactured.
The company’s vision for the future is reflected in the evolution of its landbank – the homebuilding industry’s “raw material” – and its excellent locations. From the third quarter of 2017 until today, AEDAS Homes has invested only in high-quality, fully permitted land, going from land for 12,690 to 15,234 new homes, thanks to investments that respond to real opportunities in the market and basing its decisions on local expertise. Madrid stands out as the epicentre of these investments, with land for a total of 5,038 units.
On track to deliver 1,055 units in 2019
At the operations level, with more than 5,000 homes on the market, AEDAS Homes has reached its set targets, having closed more than 2,500 sales transactions as of June 2019 for a total of €920 million euros. Regarding its scheduled 2019 deliveries, and following on the successful completion of its 2018 delivery schedule, the company has reiterated this target, and is on the way to delivering keys to 1,055 new homes, which will bring in revenues of €400 million and an EBITDA of €70 million.
A gross margin of 31%
The homebuilder’s 2019 deliveries will generate an estimated gross margin of 31%, which is in line with the commitment the company made to its investors and showcases its capacity to fulfil expectations. Increasing its gross margin, the company has demonstrated its ability to face the challenge brought on by construction cost inflation.
During Investor Day, AEDAS Homes will share its expected financial results for 2019, 2020 and 2021. The company estimates that it will bring in revenues of €707 million in 2020, with an EBITDA of €146 million, and around €828 million in 2021, with an EBITDA projected to reach €146 million.
- David Martínez, CEO de AEDAS Homes.