Neinor Homes Sa · BME:HOME
Neinor Homes Sa — 9M 2021 Earnings Presentation
24 slides from Neinor Homes Sa's earnings presentation, November 2021
Slide 1: 9M21 Results Presentation
9M21 RESULTS PRESENTATION November 2021 IBEX MID CAP®
Slide 2: Disclaimer
DISCLAIMER This Presentation has been prepared by Neinor Homes, S.A. (“Neinor”) for information purposes only and it is not regulated information or other companies operating in the same sector and industry. This information has been derived from publicly-available sources and Neinor information whi
Slide 3: Agenda
01 02 03 04 A 9M21 RESULTS: BUSINESS RENTAL 9M21 RESULTS: APPENDIX KEY HIGHLIGHTS PERFORMANCE PLATFORM KEY TAKEAWAYS REVIEW 3
Slide 4: 9M21 Results: Key Highlights
01 9M21 RESULTS: KEY HIGHLIGHTS BOLUETA HOMES I
Slide 5: Solid financial results amid intense commercialization and investment activity
9M21 RESULTS: KEY HIGHLIGHTS 01 SOLID FINANCIAL RESULTS AMID INTENSE COMMERCIALIZATION AND INVESTMENT ACTIVITY ▪ Solid financial results: revenues €499mn (+153% YoY) and EBITDA1 €96mn (+178% YoY) FINANCIAL ▪ Strong bottom-line performance: EPS1,2 of €0.79/sh (+180% YoY) representing 12% ROE1,3 (+5pp
Slide 6: Key highlights: development, rental platform, residential services
9M21 RESULTS: KEY HIGHLIGHTS 01 SOLID FINANCIAL RESULTS AMID INTENSE COMMERCIALIZATION AND INVESTMENT ACTIVITY DEVELOPMENT ACTIVITY RENTAL PLATFORM RESIDENTIAL SERVICES KUTXABANK c14,800# c10,000# C3,500# C2,000# TOTAL LAND BANK LAND ACQUISITIONS1 TOTAL LAND BANK UNDER DEVELOPMENT c€1.2bn ASSETS UND
Slide 7: 9M21 Financial Results
9M21 RESULTS: KEY HIGHLIGHTS 01 SOLID FINANCIAL RESULTS AMID INTENSE COMMERCIALIZATION AND INVESTMENT ACTIVITY 9M21 FINANCIAL RESULTS (€mn unless stated otherwise) 9M20 9M215 Change (%) ▪ Total revenue: €499mn (+153% YoY) as development Total revenues 197.3 498.9 +153% activity edges closer to its r
Slide 8: Business Performance Review
02 BUSINESS PERFORMANCE REVIEW SOPELA HOMES I
Slide 9: Monthly absorption rates more than doubled pre-COVID levels
02 BUSINESS PERFORMANCE REVIEW: DEVELOPMENT ACTIVITY MONTHLY ABSORPTION RATES MORE THAN DOUBLED PRE-COVID LEVELS COMMERCIAL ACTIVITY LTM MONTHLY NET ABSORPTION RATE1 (%) 1ST LOCKDOWN VACCINE ROLLOUT ▪ Pre-sales: Neinor’s monthly net absorption rate has more than doubled since 1st lockdown reaching 6
Slide 10: Already overachieved land acquisition guidance of €150mn
02 BUSINESS PERFORMANCE REVIEW: DEVELOPMENT ACTIVITY ALREADY OVERACHIEVED LAND ACQUISITION GUIDANCE OF €150MN LAND ACQUISITIONS LAND ACQUISITIONS BY YEAR1 ▪ Total investment: +€600mn in total acquisitions equivalent to +10,000#. 169 ▪ Cherry picked acquisitions: Replenish land bank with 150 transact
Slide 11: Strong leasing activity balancing occupancy with rent reversionary potential
02 BUSINESS PERFORMANCE REVIEW: RENTAL PLATFORM STRONG LEASING ACTIVITY BALANCING OCCUPANCY WITH RENT REVERSIONARY POTENTIAL RENTAL ACTIVITY EVOLUTION OF PASSING GRI 9.4 9.0 ▪ Letting activity: 18,800sqm leased YTD (59% of total 8.3 GLA) – high turnover expected at acquisition being a 7.9 7.7 key as
Slide 12: Rental Platform
03 RENTAL PLATFORM HACIENDA HOMES RENTAL I
Slide 13: Creating prime BTR assets with clear differentiation vs existing supply
03 RENTAL PLATFORM CREATING PRIME BTR ASSETS WITH A CLEAR DIFFERENTIATION VS EXISTING SUPPLY NEINOR RENTAL PRODUCT ▪ Core principles: Modern design, technology and innovation, wellness, sustainability and security. ▪ Create prime BTR assets: The DNA of our BTR portfolio is to create prime rental ass
Slide 14: Delivery of 1st BTR project: Hacienda Homes (146#), Málaga
03 RENTAL PLATFORM ST DELIVERY OF 1 BTR PROJECT: HACIENDA HOMES (146#), MÁLAGA ASSET DESCRIPTION I LOBBY I BUILDING FAÇADE I EXTERIOR AREAS ▪ Area: Total GLA of 14,339 sqm comprising 142# apartments and 4# retail units + 100# storage rooms + 215# indoor parking. I LIVING ROOM I BALCONY I BEDROOM 14
Slide 15: Hacienda Homes market analysis
03 RENTAL PLATFORM ST DELIVERY OF 1 BTR PROJECT: HACIENDA HOMES (146#), MÁLAGA MARKET ANALYSIS ▪ Location: Consolidated residential area with high concentration of services (hospital, court, universities, retail spaces, green areas and sport facilities). Easy access to the city centre by metro and b
Slide 16: Internal transfer of BTR assets from DevCos to PropCo
03 RENTAL PLATFORM INTERNAL TRANSFER OF BTR ASSETS FROM DEVCOS TO PROPCO BTR ASSET TRANSFER ▪ Before delivery: BTR assets are owned by the development companies (DevCos) and are recognized on the balance sheet as inventories at a book value. 100% ▪ At delivery: At the receival of the final occupancy
Slide 17: 9M21 Results: Key Takeaways
04 9M21 RESULTS: KEY TAKEAWAYS SAN JUAN HOMES I
Slide 18: Solid residential fundamentals and rental bet to drive future shareholder returns
04 9M21 RESULTS: KEY TAKEAWAYS SOLID RESIDENTIAL FUNDAMENTALS AND RENTAL BET TO DRIVE FUTURE SHAREHOLDER RETURNS ▪ Good visibility over FY21 results and reiterate €150mn EBITDA guidance FINANCIAL ▪ +100% developments have obtained their final construction certificate and are in delivery mode GUIDANC
Slide 19: Appendix
A APPENDIX ARETXABALETA HOMES I
Slide 20: P&L Statement
A APPENDIX P&L STATEMENT1 (€mn, unless stated otherwise) 9M20 9M21 Change (%) 9M21 REVENUE BRIDGE Revenues 197.3 498.9 153% Gross profit 65.3 136.4 109% 499 Margin (%) 33% 27% -6 pp +298 +2 +2 2 Operating expenses -12.8 -30.1 136% 20 Overheads -18.0 -22.1 23% Adj. EBITDA 34.4 84.1 144% Chg. in FV of
Slide 21: Balance Sheet
A APPENDIX BALANCE SHEET1 (€mn, unless stated otherwise) FY20 9M21 Change (%) CHANGES IN BALANCE SHEET Investment property 0.2 76.0 - €2,097MN Other non-current assets 22.2 32.8 48% Deferred tax assets 25.4 91.4 260% Non-current assets 47.7 200.1 320% €924MN €1,559MN Inventories 1,208.4 1,508.0 25%
Slide 22: Cash Flow Statement
A APPENDIX CASH FLOW STATEMENT 1 (€mn, unless stated otherwise) 9M20 9M21 Change (%) CASH FLOW BRIDGE YTD EBT 25.7 73.7 187% Adjustments 5.3 1.5 -71% CF from operating activities 31.0 75.2 143% Working capital change -107.1 -52.0 -51% Change in inventories -156.6 12.3 - Book value sold 132.1 362.5 1
Slide 23: Net Debt Position
A APPENDIX NET DEBT POSITION 1 (€mn, unless stated otherwise) FY20 9M21 Change (%) LTV (%) LTC (%) Gross debt 335.6 697.3 108% Non-current liabilities 73.2 327.7 347% Bank borrowing 70.7 31.1 -56% 33% Corporate financing 70.7 0.1 -100% 25% Other debt (sardes) 0.0 31.0 - 10% Financial liabilities 2.6
Slide 24: The Leading Residential Group
THE LEADING RESIDENTIAL GROUP VIDEO ENG / ESP