- It thus meets the announced delivery and cash generation targets for the year, and continues to make steady progress in meeting its business plan.
- Revenues for the full year totalled 519.2 million euros, up 1.7% year-on-year, and EBITDA reached 45.8 million euros.
- Recurring profit before tax rose 16.8% to 43.6 million euros,
- The company confirms the strength of demand for new housing, closing the year with net pre-sales of 1,837 homes, with an average price of 315,000 euros, 14% higher than the previous year.
- The developer has distributed 250 million euros in dividends for the year as a whole, equivalent to 1.65 euros per share, the highest figure since its IPO, with a yield of 26%.
- By 2023, the company has already sold more than 80% of its planned deliveries and more than 60% by 2024, so it has very good operating visibility for the next two years, despite the cooling of the macroeconomic situation in recent months.
Madrid, 27 February 2023. Metrovacesa, Spain’s leading real estate developer with more than 100 years of history and 150 projects under development nationwide, today presented its financial results for 2022. The company has met the targets set for the year, both in terms of operations and cash generation, which confirms the strength of the new housing market and the strength of the developer’s business strategy, despite the economic slowdown experienced since mid-2022.
At year-end 2022, the company recorded revenues of €519.2 million, 1.7% more than in 2021, bringing its developer gross margin to 21.2%, and EBITDA reached €45.8 million, equivalent to 9% of revenues.
As a result of the latest asset valuation, there was a negative impact of EUR 54.3 million on the income statement, mainly due to a decrease in the valuation of the tertiary portfolio. As a result, the net result for the year was negative EUR 23.5 million. Excluding this extraordinary item, and with no impact on cash generation, recurring profit for 2022 was a positive EUR 43.6 million (before tax), up 16.8% compared to the previous year.
Cash flow generation remained strong in the year, reaching €151.8 million, driven by the monetisation of land from housing deliveries and land sales. As a result, Metrovacesa has met its target of 150 million euros of operating cash generated. For 2023, the developer establishes a range of between 100 and 150 million euros, thanks to a delivery visibility similar to that of 2022 with a higher average price per home.
The company’s GAV reached EUR 2,423 million, and the net asset value or NAV per share was EUR 14.04, similar to the previous year adjusted for dividends paid, which is still approximately double the share price on the stock market.
On the other hand, at 31 December 2022, its cash position reached 202 million euros, which represents the great financial strength of Metrovacesa in the current context. Net debt reached 226.8 million euros, and its leverage ratio remains one of the lowest in the sector (LTV of 9.4%). It also has good access to financing and no significant debt repayments are expected in the short term.
In operating terms, the developer has maintained its growth path in 2022 and has excellent visibility for 2023 and 2024. In this regard, during the past year, it has pre-sold a total of 1,837 homes, closing the company’s cumulative pre-sales book with 3,171 units. These figures consolidate future delivery targets and show that demand for new housing remains solid in the areas in which Metrovacesa operates, with absorption levels close to the historical average.
Strategic advances in land management
Metrovacesa continues to strengthen its role as a key and flexible land developer in an increasingly complex context. In 2022, it made significant progress in the management of its land portfolio, which guarantees new launches in the coming years in key Spanish cities (Madrid, Barcelona, Valencia, etc.). Between 2023 and 2025, the developer expects to convert more than 5,000 homes in its land portfolio to finalist status, enabling it to optimise its product mix.
Metrovacesa has recently closed the acquisition of residential land in Granada, where it plans to build some 200 homes, and another in Santa Cruz de Tenerife, with the capacity to develop some 60 homes. These operations are part of a strategy of one-off land purchases, as a way of complementing the current portfolio, when a good opportunity is identified in the market.
Strong and attractive shareholder remuneration commitment
The company’s operational strength during the year, combined with its solid financial position, has enabled it to pay out a total of EUR 250 million in dividends in 2022 as a whole. The payout thus amounts to €1.65 per share (€0.60 in May and €1.05 in December), the highest figure since its IPO in 2018, and representing a yield for the year of 26% based on share price levels at the end of 2022.
This dividend payout reinforces Metrovacesa’s profile as one of the most attractive stocks in terms of shareholder remuneration. Since its IPO in 2018, it has distributed a total of €422 million, equivalent to €2.78 per share.
At the end of March, Metrovacesa will decide on a proposed dividend, which will be submitted for approval at its next general shareholders’ meeting, and which is expected to be payable in the second quarter of the current financial year.
