Metrovacesa (MVC) Q3 2024 earnings summary

Executive summary

• Pre-sales grew 14.9%–15% year-over-year, reaching €510.7M, with a record backlog of €1.3B, up 24% from December 2023.

• Total revenues for the first nine months 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 is proposed for December, with total 2024 dividends to reach €0.69/share (8.5% yield).

• FY24 targets remain on track, with a high concentration of deliveries expected in Q4.

Financial highlights

• 793 residential units delivered in 9M24, with ASP up 10% to €324,000 per unit.

• Net pre-sales in 9M24 totaled €510.7M (+14.9% yoy), with 1,518 units pre-sold.

• Land sales revenue grew 65% year-over-year to €21.6M; €61.9M 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%.

• Total cash position was €124.2M at the end of September.

Outlook and guidance

• Positive outlook for the Spanish housing market, supported by lower interest rates and strong demand.

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

• Strong backlog in both housing presales and land sales provides visibility for future years.

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

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