Neinor Homes Had 60 Active Developments During Q1

27 April 2017 – Observatorio Inmobiliario

Neinor Homes accelerated its development activity during the first quarter of 2017 by beginning construction of three developments and launching another seven. By the end of the period, it had 60 active developments, corresponding to almost 4,000 homes, according to a statement made by the Company in the presentation of its quarterly results to the CNMV. The reported margin of the work-in-progress projects was around 22% higher than the Company’s target margin.

Juan Velayos, CEO of Neinor Homes, highlighted that “the company has had a magnificent performance during the first quarter, placing it well on the path to fulfil the objectives for the year. Pre-sales have been exceptionally high in what is traditionally a slow quarter. The acquisition of land is continuing with margins exceeding targets and the company’s development activity is accelerating, focused on protecting the margin. One development was successfully completed and the complementary lines of business are continuing to generate cash to finance the growth of the development activity”.

At the presentation of its quarterly results, Neinor Homes also highlighted the acquisition of seven buildable plots of land for €51.6 million for the construction of almost 700 homes. According to the company, all of the acquisitions have a target margin of around 20%.

The property developer also declared pre-sales worth €116 million, relating to 319 homes during the first quarter. The cumulative pre-sales for the year “exceed expectations by 60% in terms of volume and by 46% in terms of the number of homes. The company recorded a 4.5% increase in prices during the quarter and cumulative pre-sales amounted to €483 million and 1,511 homes”, according to its results report.

Meanwhile, the company reported that “the complementary lines of business are continuing to generate cash to finance the growth of the development activity: legacy sales amounted to €57 million, 1% above their accounting value and 41% above the cumulative forecast for the year. Servicing generated revenues of €6.5 million, 4% higher than the cumulative forecast for the year”.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake

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