In compliance with its disclosure requirements under article 227 of Law 6/2023, of 17 March 2023, on Securities Markets and Investment Services, AEDAS Homes, S.A. (hereinafter, "AEDAS Homes" or the "Company") hereby notifies the CNMV of the following:
OTHER RELEVANT INFORMATION
13 February 2025
AEDAS Homes, S.A.
Earnings performance for the first nine months of FY 2024/25 (April - December 2024)
AEDAS Homes is issuing the following update on the business and earnings performance of the Company and its Group for the nine months ended 31 December 2024 ("9M 2024/25"). The unaudited figures provided here have been reviewed by the Company's governing bodies.
Business performance in the first nine months of FY 2024/25
During the first nine months of FY 2024/25, AEDAS Homes delivered 1,351 units, up from 1,147 in 9M 2023/24, generating revenue from the delivery of homes of €465 million (+20% year-on-year).
Of this total, 1,167 units were delivered to retail customers at an average sales price (ASP) of €372k, up 3% from the ASP recorded in H1 2024/25, having delivered 429 units (i.e., 37% of all BTS units delivered in 9M 2024/25) at an ASP of €392k in Q3 2024/25. The remaining 184 units corresponded to a development located in the region of Madrid which was delivered to an institutional customer in July 2024. In addition, in Q3 2024/25, the Company embarked on the process of delivering homes under the umbrella of the Madrid Region's affordable rental housing scheme, Plan Vive I, specifically delivering the first 717 units (i.e., 20% of the total to be delivered under this scheme). As a result, the volume of units under management delivered in 9M 2024/25 totalled 2,068 units, 55% of which were delivered in the third quarter, once again evidencing the Company's operational capabilities.
Sales activity picked up between April 2024 and December 2024 when the Company sold units for €980 million1 (+44% year-on-year), with 35% of that figure concentrated in the third quarter. Those sales break down as follows:
• Residential Development business line1: €813 million, corresponding to the sale of 2,089 BTS units at an ASP of €389k (+2%2 versus the ASP of the BTS units sold in 9M 2023/24). Of this total, 36% were sold in the third quarter at an ASP that was in line with that recorded on the units sold in the first half (i.e., €389k). In addition to these BTS unit sales, the Company sold 944 homes earmarked for affordable rental in the region of Madrid (on a turnkey basis) to an institutional investor; and
1 Excludes the sales activity associated with the assets acquired as part of the purchase of the Priesa Group.
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- Real Estate Services business line1 on a joint venture basis: €166 million, corresponding to the sale of 234 units at an ASP that was 7% higher than that of the units sold in 9M 2023/24. 37% of these units were sold in the third quarter of the year at an ASP of €571k, marking a lower price than in earlier reporting periods shaped by the product mix, as nearly 50% of the third-quarter sales revenue was concentrated in the Catalonia & Aragon and East Regional Branches.
The above levels of sales and deliveries, coupled with the acquisition of the Priesa Group in August 2024, meant that at 31 December 2024, the Company had a total managed Order Book valued at €1.85 billion2 (vs. €1.24 billion at 31 March 2024 and €1.52 billion at 31 December 2023), broken down as follows by business line:
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Residential Development business line: €1.44 billion2 (vs. €1.353 billion at
31 December 2023), made up of 3,637 BTS units at an ASP of €379k, or €385k excluding the Priesa Group's 209 BTS units (+6% vs. 31 December 2023) and 3272 BTR units at an ASP of €174k (having delivered 401 units since December 2023, of which 184 were delivered in the current fiscal year); and - Real Estate Services business line on a joint venture basis: €419 million (vs. €169 million at 31 December 2023), made up of 709 BTS units at an ASP of €590k, or €649k excluding the 125 BTS units corresponding to
Priesa Group joint ventures (+7% vs. 31 December 2023).
As for the Company's operating activity, and considering all of the units managed by the Company, at 31 December 2024, the Company had a total of 15,909 active units under management (i.e., 68% of the total land bank under management), broken down in terms of investment structure and product type as follows:
- Excludes the sum associated with the sale of 944 homes earmarked for affordable rental in the region of Madrid.
- Adjusted for the sales units or order book units that were transferred to joint ventures in Q4 2023/24.
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This total volume of active units under management marks a decrease of around 1,000 units with respect to 30 September 2024. This trend is attributable to: (i) the net activation of 228 units (note, however, that in Q3 2024/25, 500+ committed units already activated in prior quarters ceased to be considered commitments, becoming active units classified within the Company's inventories); (ii) the delivery of 1,146 units; and (iii) the deactivation of one development under management with 101 units. Of total active units under management:
- 4,051 were already completed (25% of total active units under management): this marks substantial growth from the 1,040 units under management as of 30 September 2024 and was underpinned by solid progress on construction work at both BTS and BTR developments and on Plan Vive I; indeed, in just one quarter, the Company obtained 4,100+ new work completion certificates (42% BTS & BTR | 58% Plan Vive I), offsetting the 1,146 units delivered that quarter. Also worth noting is the fact that of total units already finished, 2,354 were BTS or BTR units boasting sales levels of 73%, injecting strong visibility into the Company's ability to meet its targets.
- 6,799 units were under construction (43% of total active units under management): the drop in the volume of units under construction mainly reflects intense construction completion levels during the third quarter, when 42% of the units that were under construction at the September 2024 close finished during that quarter. This high number of works completed was not fully offset by the almost 1,000 new units where construction started during the third quarter (of which 86% were BTS units either fully owned by the Company or being developed via joint ventures). However, the Company expects to continue to mitigate this effect as 1,000+ BTS units are expected to break ground during the fourth quarter.
- 5,059 units were at the marketing or design phase (32% of total active units under management): in Q3 2024/25, the Company activated 228 units; and 3,973 of total units were wholly-owned by AEDAS Homes, between BTS, BTR and Concession units.
Overall, the Company has good visibility for the years to come (as shown in the following charts that illustrate the coverage ratios4 for the Residential Development business line only), allowing it to reaffirm its goal of generating revenue from Residential Development of around €1 billion per year, although some deliveries in the East Regional Branch could be affected by ad-hoc delays as a result of last autumn's extreme flash flooding in the area.
4 Including the marketing launches scheduled for Q4 2024/25, the coverage ratio for FY 2026/27 in terms of market launches would be 100%.
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Investment activity in the first nine months of FY 2024/25
Throughout the first nine months of the year, AEDAS Homes continued to invest intensively, reaching a new milestone: new investment commitments in an aggregate amount of around €400 million (in ready-to-build cost terms).
The Company's leadership in land investments in Spain is reinforced by its diversification strategy, in terms of both how it structures its investments and asset classes, evidencing the Company's honed ability to tap new opportunities. Against this backdrop, the Company not only made its first investments in flex living (for the construction of 845 units across three developments), it also articulated its investments variously: as isolated purchases of assets; via corporate transactions (the acquisition of the Priesa Group in August 2024); as portfolio acquisitions (the acquisition from Habitat, S.A. of a portfolio of land located primarily in the region of Madrid in December 2024); and through the adjudication of land under concessions (specifically concessions over three sites for the construction of 944 units in three municipalities in the Region of Madrid under the Plan Vive III affordable housing scheme).
This investment activity was complemented by select disposals, framed by the Company's annual asset turnover policy. Specifically, in 9M 2024/25 the Company closed five sales transactions for an aggregate price of €9 million and entered into two private contracts, which had yet to close at 31 December 2024, for a total of €7 million. In total, these sales transactions are expected to generate €16 million of proceeds for the Company.
As a result of these levels of deliveries, investments and disposals, the land bank under the Company's management at the December 2024 close encompassed a total of 23,411 units (+2,239 units vs. 30 September 2024 and +5,408 units vs. 31 March 2024). This managed land bank is for the large part comprised of units wholly-owned by AEDAS Homes (almost 18,000 units) and primarily of BTS units (76% of the total).
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Financial performance in the first nine months of FY 2024/25
In the first nine months of FY 2024/25, AEDAS Homes recognised total revenue of €485 million (+9% year-on-year), of which €465 million was generated by the Residential Development business (+20% year-on-year, driven by higher delivery volumes and a higher ASP on the units delivered). Gross profit from development amounted to €105 million, implying a margin of 22.6% (including the delivery of one BTR development; note that the gross margin on the BTS developments completed in FY 2024/25 was well above 25%). EBITDA totalled €53 million (+21% year-on-year, with the EBITDA margin widening 108 basis points vs. 9M 2023/24). Net debt ended December at €663 million, a level expected to trend lower as the deliveries scheduled for Q4 2024/25 take place.
Main conclusions
In 9M 2024/25, the Company demonstrated its position of leadership and its ability to deliver growth in a market whose fundamentals signal ongoing momentum in the Spanish residential property segment. In the current environment, the Company is identifying and tactically arranging new investments aligned with its investment policy. So far in FY 2024/25 it has made investments (some closed, some committed to) worth around €400 million (in ready-to-build cost terms) for the development of 7,000+ units, forging a managed land bank of 23,400+ units ripe for monetisation in the short and medium term, as nearly 70% of them are already active.
In parallel, sales activity remains very solid, marked by monthly sales of 250+ units and a rising ASP, leaving the Company with very healthy coverage ratios that lend visibility and stability to the Company's business for the years to come.
In sum, AEDAS Homes is in a position to reiterate its target of recognising total revenue of over €1 billion in FY 2024/25 with a gross development margin in the BTS segment of close to 24%, while continuing to offer its shareholders attractive and stable returns, leveraging its leadership position, operational solidity and financial prudence.
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About AEDAS Homes
AEDAS Homes is Spain's benchmark residential developer. The Company has put 20,000+ homes on the market across 300+ developments in Spain's most dynamic markets, and in the process, has become an icon of innovation, sustainability, modern methods of construction, rigour and professionalism in the real estate sector.
The Company's core business is the development of sustainable multi-family and single-family homes in Spain's most desirable locations. It also develops turnkey Build-to-Rent projects for institutional investors, and through its Real Estate Services division, provides integrated project management services for third parties, including co-investing with partners on residential and alternative living arrangements.
As of the end of December 2024, the covenant ratios for the Green Bonds issued in May 2021 and maturing in August 2026, were as follows:
Green Bond Covenants | Dec-2024 | Dec-2023 |
Net Total LTV | 32.5% | 25.7% |
Net Secured Total LTV | 25.0% | 21.5% |
Fixed Charge Coverage Ratio | 7.2x | 6.7x |
Pari Passu Senior Secured LTV | 9.5% | 10.4% |
https://www.aedashomes.com
For more information, please contact:
Tamara Marañón (Director of Capital Markets)
investor@aedashomes.com
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Disclaimer
By accessing this document (the "Document") and/or accepting this Document, you will be taken to have represented, warranted and undertaken that you have read and agree to comply with the contents of this disclaimer.
This Document has been prepared by AEDAS Homes, S.A. (the "Company") and for the purposes of this disclaimer, "Document" means this document, its contents or any part of it. This Document may not be copied, distributed, reproduced or passed on, directly or indirectly, in whole or in part, or disclosed by any recipient to any other person, for any purpose other than the aforementioned.
This Document has not been verified by independent third parties and therefore no representation, warranty or undertaking, express or implied, is made, nor is any guarantee given as to the fairness, accuracy, completeness or correctness of the information or opinions contained herein and nothing in this Document is, or shall be relied upon as, a promise or representation.
None of the Company nor any of its employees, officers, directors, advisers, representatives, agents or affiliates shall have any liability whatsoever (in negligence or otherwise, whether direct or indirect, in contract, tort or otherwise) for any loss, damage or harm howsoever arising from any use of this Document or its contents or otherwise arising in connection with this Document.
This Document is for informational purposes only and is incomplete without reference to, and should be viewed solely in conjunction with, the Company's publicly available information and, if applicable, the oral briefing provided by the Company. The information and opinions contained in this Document are provided as at the date of the Document and are subject to verification, correction, completion and change without notice. In giving this Document, no obligation is undertaken to amend, correct or update this Document or to provide access to any additional information that may arise in connection with it is undertaken.
Likewise, it is not the Company's intention to provide, nor can this material be deemed to provide, a complete and comprehensive analysis of the Company's financial or trading position or prospects.
This Document does not constitute investment, legal, accounting, regulatory, taxation or other advice and does not take into account your investment objectives or legal, accounting, regulatory, taxation or financial situation or particular needs. You are solely responsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Company and the group. You are solely responsible for seeking independent professional advice in relation to the Company and the group. Neither the Company nor its affiliates, nor any of their employees, officers, directors, advisors, consultants or agents assumes any responsibility or liability for any information or action taken by you or any of your officers, employees, agents or associates based on such information.
This Document contains financial information regarding the businesses and assets of the Company and the group. Such financial information may not have been audited, reviewed or verified by any independent accounting firm. The inclusion of such financial information in this Document or any related Document should not be regarded as a representation or warranty by the Company, its affiliates, advisors or representatives or any other person as to the accuracy or completeness of such information's portrayal of the financial condition or results of operations by the Company and the group and should not be relied upon when making an investment decision. Certain financial and statistical information in this document has been subject to rounding off adjustments. Accordingly, the sum of certain data may not conform to the expressed total.
Certain statements in this Document are forward-looking. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions, many of which are generally beyond the Company's control, and could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These include, among other factors, changing economic, business or other market conditions, changing political conditions and the prospects for growth anticipated by the Company's management. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. Any forward-looking statements contained in this Document and based upon past trends or activities should not be taken as a representation that such trends or activities will continue in the future.
The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The market and industry data and forecasts that may be included in this Document were obtained from internal surveys, estimates, experts and studies, where appropriate as well as external market research, publicly available information and industry publications. The Company, its affiliates, directors, officers, advisors and employees have not independently verified the accuracy of any such market and industry data and forecasts and make no representations or warranties in relation thereto. Such data and forecasts are included herein for informational purposes only.
The distribution of this Document in other jurisdictions may be restricted by law and persons into whose possession this Document comes should inform themselves about and observe any such restrictions.
Neither this document nor any of the information contained herein constitutes or forms part of, and should not be construed as, an offer of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities, or any advice or recommendation with respect to such securities of the Company in any jurisdiction, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Any purchase of or subscription for securities of the Company should be based solely on each investor's own analysis of all public information, the assessment of risk involved and its own determination of the suitability of any such investment. No decision should be based on this Document.
The definition and purpose of the Alternative Performance Measures are available in the Investors Kit on the AEDAS Homes website here.
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