Metrovacesa reports first quarter revenues of 79.5 million euros and EBITDA of 4.4 million euros

• It confirms the strength of demand and its recovery compared to the previous three quarters, reaching a pre-sales figure of 425 units and exceeding for the first time the 1,000 million euros in value of its accumulated pre-sales portfolio (3,625 units).

• The developer maintains strong business visibility for the coming years, thanks to its high sales coverage (it has already pre-sold 85% of deliveries for 2023 and 60% of those planned for 2024) and the positive progress in construction works

• Confirms its annual target for free cash flow generation (between 100 and 150 million euros in 2023) and continues to increase its volume of activity, with the commissioning of more than 2,000 homes in the last twelve months.

• The General Meeting yesterday approved the distribution of a dividend of 0.33 euros per share in cash, equivalent to a total amount of 50 million euros, to be paid on May 19, 2008.

Madrid, April 26, 2023. Metrovacesa, a leading real estate developer in Spain with more than 100 years of history and 150 projects under development nationwide, today presented its financial results for the first quarter of 2023. The company continues to make progress in meeting its operating and financial targets for the full year and beyond, demonstrating the strength of its business model and its financial robustness, despite the uncertainty and volatility of the current environment.

“Last year 2022 started strong in the first few months, but as the year progressed, the market context weakened. The figures for the first quarter of 2023 point to a gradual recovery in demand and make us confident that we can meet our business plan for the current and future years,” said Jorge Pérez de Leza, CEO of Metrovacesa.

In the first three months of 2023, the developer achieved €79.5 million in revenues mainly from the residential business, down 43.65% compared to the same period of the previous year. The developer’s gross margin rose to 21.5% (1.3 percentage points higher than in the first quarter of 2022). The company’s EBITDA amounted to 4.4 million euros (compared with 15.6 million euros in the first quarter of the previous year).

Metrovacesa delivered 331 homes in the first quarter, a figure fully in line with the company’s internal objectives and with its business plan, since this year a higher volume of deliveries is expected in the second half of the year, taking into account the schedule for the completion of the works in progress, as well as a higher average price per home delivered in the second half of the year.

Jorge Pérez de Leza, pointed out that “Metrovacesa’s high cash generation capacity has allowed the company to approve, yesterday, by the General Shareholders’ Meeting, a new dividend of 0.33 euros per share, payable on May 19 and equivalent to a total amount of 50 million euros and a pay-out of 85% of the cash flow generated in 2022.

This distribution is justified by the appropriate structure of our balance sheet and is consistent with the business plan set forth at the time of the IPO, which foresaw as a distribution policy the distribution of at least 80% of the free cash flow generation in each year”.

It should be noted that Metrovacesa’s business is also supported by a very solid financial situation. The company’s net debt, as of March 31, 2023, stood at 279.6 million euros. On the other hand, the company’s leverage ratio (loan to value) stood at 11.5%, remaining below the reference range set by the developer (between 15% and 20%) and making it the listed developer with the lowest leverage ratio.

Strong operational visibility

Metrovacesa has closed the first quarter of the year with a pre-sales figure of 425 units, which shows a significant recovery in demand compared to recent quarters. It is also worth noting that the company’s accumulated pre-sales have exceeded 1,000 million euros in value for the first time, with a total of 3,625 units.

The company currently has strong business visibility for the coming years, thanks to high sales coverage (it has already pre-sold 85% of deliveries for 2023 and 60% of those planned for 2024) and the good progress of construction work (work has already begun on 100% of the homes to be delivered in 2024 and more than 35% of those for 2025).

The developer continues to increase its volume of development activity, and at the end of the first quarter of 2023, it had 4,239 units under construction, having started work on 2,006 homes in the last twelve months. In addition, it had 6,504 units in marketing at the end of the quarter, having launched 2,092 homes in the last twelve months. In this way, Metrovacesa continues to make progress in its objective of reaching a production rate of over 2,000 homes per year.