Metrovacesa (MVC) Q3 2024 earnings summary

Executive summary

• Pre-sales in euros grew 15% year-over-year, with a record sales backlog of €1.3bn, up 24% from December 2023.

• Total revenues for the period were €278.9m, including €21.6m from land sales; residential deliveries generated €257.3m, down 10.9% from 9M23.

• Gross margin improved to 23.6%, and EBITDA reached €11.3m for 9M24.

• Dividend of €0.33/share proposed for December, bringing total 2024 dividend to €0.69/share (8.5% yield).

• FY24 targets remain on track, with a high concentration of deliveries expected in 4Q.

Financial highlights

• Pre-sales revenue increased 15% year-over-year, with an 8.3% rise in units sold and a 5% price increase.

• 793 residential units delivered in 9M24, with ASP up 10% to €324k/unit.

• Land sales revenue grew 65% year-over-year to €21.6m; €61m in binding land sale contracts as of September 30.

• Net debt stood at €397.6m, with a loan-to-value (LTV) ratio of 16.0%.

• Gross development margin reached 23.6%, above the historical low 20s target.

Outlook and guidance

• Positive housing market outlook, supported by strong demand, insufficient new supply, and lower interest rates.

• FY24 delivery targets confirmed, with over 1,000 units already sold and completed as of September.

• Cash flow guidance for the year is reaffirmed at the higher end of €100–125m.

• Land sales for the year expected to reach €65–70m, with prices close to book value.

• Dividend yield for 2024 projected at 8–8.5%, with total dividends of €105m.