Renta Corporación Considers Paying Dividend of 30% to Shareholders in 2018

26 April 2018 – Eje Prime

Renta Corporación is returning to the boom times. According to Luis Hernández de Cabanyes, President of Renta Corporación, the real estate group is evaluating the possibility of distributing a 30% dividend to its shareholders. If that decision is approved in the end, the group’s shareholders would receive almost €5 million, given that the group’s objective for this year is to achieve a net result of €16 million.

That would be the first time in ten years that Renta Corporación has distributed any of its profits. “We have the intention of distributing a dividend, however, it will all depend on the financing needs of the company”, added the President of the group. Although the dividend for 2018 is still under consideration, the company has hinted that it will almost be a commitment to its shareholders starting from next year.

This reward for Renta’s shareholders comes after the company managed to pull itself out of the economic crisis. “We find ourselves facing a favourable market for the next four years and our objective is to return to our pre-crisis levels, when the group’s net profit amounted to between €30 million and €50 million, by 2022”, says Hernández.

“A stable business model, a renewed brand (the group is going to unveil a redesign of its entire corporate image next week), solvency, a portfolio of buildings under construction, a database and external collaborators are the ingredients to achieve the results that we have set ourselves”, concluded the President of the group.

According to the group, its strategic plan for the next three years involves maintaining a portfolio mix similar to the one it has had until this year “with the aim of diversifying its exposure to the risk presented by the different segments of the real estate market”.

“Renta will continue to concentrate its portfolio in the residential sector, one of the markets that is experiencing the highest growth and where positive trends are forecast, both in terms of prices and the volume of operations” – say sources at the group – “The operations forecast in the strategic plan will continue to concentrate on the cities of Madrid and Barcelona, since they are the most dynamic of all the markets”.

In 2018, Renta expects to close numerous operations involving the acquisition of new assets and the sale of properties, whilst in 2019, the number of transactions carried out by the group will rise to 31. In 2020, Renta plans to sign 34 operations. The operating margin is expected to amount to €26.5 million in 2018; €33.9 million in 2019; and €35.6 million in 2020.

Although Renta is focusing on Spain, specifically Madrid and Barcelona, the company does not rule out returning to some of its old haunts such as Paris (…).

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake