Metrovacesa’s revenues up 42% and EBITDA up 223% in the first half of the year

• The company closed the period with a positive net profit of 3.8 million euros and a recurring profit before tax of 22.4 million euros.

• 675 homes delivered up to 30 June, 18% more than in the first half of the previous year, with an average price of 335,000 euros, and an improvement in the gross development margin, which reached 24.2%.

• The number of pre-sales grew to 1,046 homes in the first six months of the year, the best six-month period for sales in recent years, and 15% higher than in the same period in 2023, backed by the current robust demand.

• The company confirms its annual free cash flow generation target for 2024: between 100 and 125 million euros.

Madrid, 24 July 2024. Metrovacesa, Spain’s leading real estate developer with more than 100 years of history and 113 developments in progress nationwide, today presented its financial results for the first half of 2024.

The company has registered a very significant growth in terms of revenues, EBITDA and profit during the first half of 2024. Revenues amounted to 235 million euros, compared to 165.1 million euros in the same period of 2023, a 42% increase. EBITDA increased threefold to 31.3 million euros, while net profit closed the half-year in positive territory, reaching 3.8 million euros, compared to a loss of 35.3 million euros in the first half of 2023. The developer’s recurring profit rose to 22.4 million euros before tax, excluding the impact of the change in value of the real estate portfolio.

Cash flow generated in the first half was 66.2 million euros, 150% higher than in the same period of 2023 and in line with the company’s forecasts. It thus confirms its annual free cash flow generation target (between 100 and 125 million euros in 2024), which will allow it to continue to comply with its attractive dividend policy, with the distribution of at least 80% of the gross operating cash flow each year.

With regard to housing deliveries, 675 units were delivered in the first half of this year, 18% more than in the first six months of 2023. These figures are within the company’s internal targets, as deliveries this year will be particularly concentrated in the second half of the year. Revenues from residential development reached 226.7 million euros, 39% more than in the same period of the previous year. The average sales price increased by 17% in the first half of the year, to 335,000 euros, and the gross development margin improved from 22.2% to 24.2%.

Pre-sales reached 1,046 units in the first six months of 2024, 15% higher than in the same period of 2023. Considering the results of the first two quarters, with more than 500 units in each of them, Metrovacesa closed the first half of the year with the highest commercial sales figure in recent years.

These good metrics highlight the successful design of our developments, which are committed to the quality and sustainability of the homes, adapted to the needs and expectations of current demand. They also reflect an improvement in the demand for housing in Spain over the first half of the year and the growth of the Spanish economy. This trend is accompanied by the current imbalance between supply and demand, in which the supply of new construction remains well below the current needs arising from population growth and the number of households.

Against this backdrop, the developer’s accumulated pre-sales portfolio at 30 June 2024 reached 3,703 homes at an average price of 324,000 euros, representing future revenues of 1.2 billion euros. In addition, at the end of the first half of the year Metrovacesa had a total of 4,354 homes under construction and 6,442 in commercialisation, of which 57% have already been sold.

In terms of land activity, it is worth highlighting the improvement recorded by the developer in terms of sales, generating revenues of 8.3 million euros (compared to 1.3 million euros in the first half of 2023), corresponding to the sale of various residential land. Metrovacesa also has a further €58 million of additional sales under private contract, which it expects to book between 2024 and 2025.

In terms of investment, during the first half of the year, 23.4 million euros were invested in land purchases, in selective locations with strong demand for housing and a shortage of land for final use. In addition, other land purchases pending formalisation have been agreed for an amount of 39.5 million euros in Valdecarros (Madrid) and Cruzcampo (Seville). In this way, Metrovacesa accumulates a total of 160 million euros invested in land purchases between 2023 and 2024.

Jorge Pérez de Leza, CEO of Metrovacesa, said: ‘The improvement in all our key metrics during the first half of the year reflects the good operating performance of the company, the strength of our strategy, and the commitment of the Metrovacesa team to generate value in a sustainable way. Demand for housing remains solid, with absorption levels above historical averages, and the economic outlook continues to improve, allowing us to maintain an optimistic outlook for the coming months.”