Metrovacesa increases pre-sales by 14.9% up to September and announces a dividend of 50 million euros

• Pre-sales between January and September reached 510.7 million euros, with 1,518 homes, and the pre-sales portfolio reached a record 1,300 million euros, 24% more than at the beginning of the year, providing excellent business visibility for the coming years.

• The company confirms its targets for year-end 2024, with residential deliveries up on the previous year, with a high number of developments expected to be delivered in the final quarter.

• Metrovacesa will pay a new dividend of 0.33 euros per share in December, equivalent to 50 million euros, subject to the approval of the General Meeting in November.

• This week, Metrovacesa announced the creation of a joint venture with Vita Group to develop a flex-living building in Madrid, as well as the refinancing of its corporate loan, increasing the amount to 276 million euros and extending the maturity until 2029.

Madrid, 30 October 2024. Metrovacesa, Spain’s leading real estate developer with more than 100 years of history and 114 developments under development nationwide, today presented a summary of its operating figures for the third quarter of 2024. Metrovacesa’s total revenues for the period reached 278.9 million, including 21.6 million from the sale of land. Gross margin reached 48.7 million euros and EBITDA reached 11.3 million euros. Forecasts for the full year 2024 remain unchanged, as a higher concentration of housing deliveries and land sales is expected in the last quarter of the year.

Between January and September, pre-sales reached 510.7 million euros, 14.9% more than in the same period last year with 1,518 units pre-sold. The accumulated pre-sales portfolio to September reached a record 1,300 million euros, 24% higher than at the beginning of this year, and which corresponds to 4,057 homes. With these commercial sales, the developer has strong visibility on deliveries in the coming years, having already sold 97% of the deliveries planned for 2024 and 81% of the deliveries planned for 2025.

Over the last year, transactions in the Spanish real estate market have recovered their dynamism, exceeding 570,000 transactions in the last 12 months, according to data from the National Statistics Institute (INE). This dynamism is taking place against a backdrop of falling interest rates and a supply that is still insufficient to meet demand, so the outlook for the Spanish residential market remains positive.

In terms of housing deliveries, 793 homes were delivered in the first nine months of the year, with an average price of €324,000, improving the gross margin from 22.4% to 23.6%. The company maintains its targets for the end of the year, which assume an increase in the number of homes delivered, with a greater concentration of developments in the fourth quarter of the year.

At the end of September, Metrovacesa had 4,830 homes under construction and 6,412 homes being marketed, equivalent to potential revenues of 2.3 billion euros, 63% of which have already been sold.

In terms of investment in land, during the first nine months, Metrovacesa has acquired land for 775 homes, for a total amount of 61.9 million euros, although the investment made in the period was 13.5 million euros, due to the deferral of payment in most cases. The main acquisitions in the period were in Tenerife, Seville and Madrid.

Finally, the company’s Board of Directors has proposed the payment of a new dividend of €50 million next December (€0.33/share), subject to approval by the Extraordinary General Shareholders’ Meeting to be held on 19 November in Madrid. Together with last May’s dividend, the dividend yield paid this year exceeds 8.5% of the share price at the beginning of the year, confirming the company’s traditional attractive dividend policy. Thus, the cumulative dividends paid by Metrovacesa since its IPO in 2018 will now reach €626 million (€4.13/share).

Jorge Pérez de Leza, CEO of Metrovacesa, said: ‘Metrovacesa’s performance this year has been very favourable, which is reflected in the growth of our commercial property and land sales portfolio, while we continue to be active in the acquisition of new land to complement our existing portfolio. We confirm our forecasts for the full year, both in terms of deliveries and cash flow generation, which allows us to continue with our attractive shareholder remuneration policy’.