Neinor Homes (HOME) H1 2024 earnings summary

Executive summary

• Strong fundamentals in the Spanish residential sector, with robust macroeconomic and demographic trends supporting demand and limited supply.

• Clear visibility on results and dividend distributions, targeting €325 million over the next two years, representing a 31% accumulated yield.

• JV business has exceeded five-year targets, notably with a €200 million senior living agreement with Octopus Real Estate.

• Execution of the strategic plan is ahead of expectations, shifting from a value/dividend play to an equity-efficient growth story with double-digit earnings growth targeted.

Financial highlights

• 1H 2024 revenues reached €182 million, EBITDA €22 million, and adjusted net income €12 million.

• Net income grew 97% year-over-year in the first semester.

• Gross margin for the first semester was approximately 28%.

• Cash position at €224 million, with a conservative loan-to-value of 14%.

• 882 units delivered (notarized) in the first half, with 1,173 units sold.

Outlook and guidance

• Dividend guidance: €200 million for 2024, €125 million for 2025, and €70–75 million for 2026, with accelerated payments where possible.

• Build-to-sale gross margin guidance maintained at 24%.

• Pre-sales coverage: over 80% for 2024, ~40% for 2025, and 15% for 2026, with targets to increase coverage by year-end.

• Focus on deploying JV capital and maintaining flexibility between direct and co-investment land acquisitions.