Tag: profit

Neinor Earned 74% More in Q1 and Signed 64 Pre-Sales During Lockdown in April

The property developer generated a profit of €3.9 million between January and March from revenues of €50.5 million. In April, it closed half as many pre-sales as planned.

The property developer Neinor Homes managed to close the pre-sales of 64 homes off-plan during April, a month that was marked by the closure of its sales offices due to the State of Emergency. Prior to the coronavirus crisis, the managers of the real estate company had set a target of twice that figure for the month. During the three months to March, the company pre-sold 353 homes compared to 306 in the same period a year earlier.

The CEO of the company, Borja García-Egotxeaga, revealed this information at the results presentation for the first quarter of 2020. During Q1, the firm obtained a profit of €3.9 million, up by 74% compared to the same period a year earlier, from revenues of €50.5 million, down by 17% YoY.

Vía Célere’s Revenues Doubled but its Profit Decreased by 73%

The property developer controlled by Värde Partners generated revenues of €363 million in 2019, compared to €157 million the previous year, however, its profit fell by 73% due to a drop in extraordinary income.

The house builder Vía Célere closed 2019 with a profit of €22 million euros, which represents a drop of 73% compared to the previous year.

The company attributes this decrease to a decrease in extraordinary income since the attributable profit in 2018 included non-recurring income of €86.5 million, resulting from the recognition of tax credits with the Treasury and the capitalisation of debt. Without those extraordinary items, the profit would have been €23 million higher.

Realia Earns 22% Less due to Covid-19 and Refinances its Debt to 2025

The real estate company controlled by Carlos Slim has closed the first quarter with a profit of €3.92 million. It has also announced the novation of its syndicated loan until 2025.

The listed real estate agency, Realia, closed the first quarter of 2020 with a profit of €3.94 million, down by 21.9% compared to the same period a year earlier.

The company, which is dedicated to property development and rental activities, increased its income and operating result (EBITDA); however, the increase in its provisions for Covid-19, which went from a gain of €74,000 to an expense of €1.87 million, weighed down its net result.

Neinor Reports Profits of €90M, Exceeding its Own Forecast by 30%

9 January 2020 – El Confidencial

Nine months after issuing a profit warning, announcing a new roadmap and appointing a new CEO (Borja García-Egotxeaga (pictured below)), Neinor has reported profits of €90 million, up by 30% compared to the revised forecasts of €70 million.

The property developer handed over 1,269 finished homes last year, within its forecast range of between 1,200 and 1,700, and has another 200 ready to hand over this year. It plans to hand over half of those this month (January) and the rest during the course of the year, depending on its margins.

2020 is going to be a critical year given the looming change in the economic cycle, with stabilisation expected in terms of sales and prices. In 2018, prices rose by 8%; in 2019, they increased by 6-7%; and in 2020, the firm’s objective is to sell 1,700 homes and achieve a price increase of 3.5-4%. Thanks to these rises, the group’s margin amounted to 30% at the end of 2019.

By contrast, Neinor has not managed to fulfil its land purchase plan to date, although it expects to achieve its ambitious forecasts for 2020 when it aims to invest €110 million in total.

The property developer’s two largest shareholders, Orion (28%) and Adar are both keen to support the growth of the company and benefit from the consequent recovery of its share price.

Original story: El Confidencial (by Ruth Ugalde)

Translation/Summary: Carmel Drake

VBare’s Profits Rose by 52% in Q1 2019 to €1.1M

15 May 2019 – Eje Prime

VBare Iberian Properties, the Socimi specialising in the management of residential assets, obtained a profit of €1.1 million during the first quarter of 2019, which represents an increase of 52% YoY. Gross revenues from asset rentals rose by 50% YoY during the same period to €461,000.

According to a statement issued by the company, VBare’s asset portfolio comprised more than 300 assets and was worth €57.4 million at the end of March 2019, up by 15% with respect to the end of 2018. The Socimi recorded profits of €4.8 million in 2018, doubling the result from the previous year.

Original story: Eje Prime 

Translation/Summary: Carmel Drake

Hispania’s Profits Fell by 56% YoY in 2018 to €96.5M

28 February 2019 – Expansión

Hispania recorded a net profit of €96.5 million in 2018, down by 56% compared to a year earlier, according to the accounts filed with the CNMV by the listed real estate investment company (Socimi) controlled by Blackstone.

Revenues from rental income rose by 6.8% to amount to €151.7 million, according to the Socimi’s accounts, which were managed by Azora until August, whereas now their management is divided between HI Partners (hotels), Rivoli (offices) and Fidere (homes), all of which are linked to Blackstone. The company is expected to cease trading on the stock market on 1 April.

In September, Hispania’s new management team decided that Azora would no longer manage the three branches of the Socimi, a move that resulted in the early termination of the contract, in exchange for the payment of a penalty amounting to €224 million.

Original story: Expansión

Translation: Carmel Drake

Unibail’s Profit in Spain Falls by 3.6% Following the Sale of 4 Assets

20 February 2019 – Idealista

The French shopping centre giant has seen its profits in Spain decline due to one of the operations of the year. Unibail-Rodamco earned 3.6% less in the Spanish market in 2018, specifically, €155 million, following the sale of its portfolio of four shopping centres to the South African fund Vukile for around €500 million, as reported by Idealista News last July. If it had not carried out that sale, the group’s profits would have grown by 2.8%.

The company ended last year in the Spanish market with a net profit of €161 million, up by 10.3% compared to 2016, when the group earned €146 million. Until now, Spain had been one of the fastest-growing countries for Unibail-Rodamco.

Across all of the markets in which it operates, the French company recorded a net profit of €1.9 billion, up by 36.9% YoY. That increase in gains was due, in part, to the purchase of the Westfield shopping centre group.

Whilst the area where Unibail-Rodamco increased its profit by the most in the last twelve months was Central Europe, up by 21.7%, France was ranked in second place, with growth of 5.3%. Behind France was Austria with an increase in profits of 4.3%.

Mega-operation with Vukile

Unibail-Rodamco became one of the stars of the sector last July when it closed the sale of four shopping centres to the South African fund Vukile, through its Spanish real estate vehicle Castellana Properties Socimi for €489 million (…).

Currently, the group led by Christophe Cuvillier (pictured above) owns a portfolio in Spain worth €3.6 billion, which receives 126.2 million visitors per year. Those assets account for 10% of its global portfolio.

Original story: Idealista (by Custodio Pareja)

Translation: Carmel Drake

MK Premium Acquires Another Building in Barcelona for €3.8M

31 January 2019 – Eje Prime

MK Premium is starting the year with new purchases. The company has acquired another building in Barcelona for €3.8 million. The asset is located at number 5 Calle Milans, a street in the ‘Gótico’ neighbourhood where the company already owns another property.

According to explanations provided by the company, it is a historical property, constructed in 1870, with a total surface area of 1,107 m2, comprising seven homes and two commercial premises.

In 2017, MK Premium acquired the building located at number 4, with a total surface area of 2,700 m2, worth €10 million. With this purchase of number 5 Calle Milans, the Spanish property company has invested almost €14 million and owns assets spanning more than 3,700 m2.

The Spanish property firm, specialising in real estate assets ended 2018 with a profit of €2.12 million, which represented an increase of 135% with respect to 2017. The company’s turnover for the year amounted to €14.63 million (…).

Original story: Eje Prime

Translation: Carmel Drake

Aedas, Neinor & Merlin Properties Put €1bn on the Table for Sabadell’s Land

29 January 2019 – OK Diario

Banco Sabadell has now opened the sales process for Solvia Desarrollos Inmobiliarios, its real estate developer, for which the entity expects to obtain €1 billion. To date, the entity chaired by Josep Oliu has already sent the teaser to almost 30 interested parties. But there has been an important development, and that is that it is not only the typical funds that tend to participate in these types of auctions that are interested in the company, property developers are also keen, including Neinor, Aedas and Merlin Properties.

It is worth remembering that when Sabadell decided to sell Solvia, it separated the house-sale business and the real estate development business into two different companies with the aim of achieving a better offer. The land, which is owned by the second firm, forms part of the bank’s balance sheet and that is what is now up for sale.

According to sources speaking to OK Diario, the deadline for non-binding offers will finish in March; it will be after that when Banco Sabadell will start to receive binding offers. Sources in the know indicate that the operation will be closed in the second quarter. And, moreover, in addition to the aforementioned property developers, funds such as Cerberus, De Shaw, Blackstone, Värde, Apollo and Oaktree have also received the teaser (…).

The main plots of land owned by Solvia Desarrollos Inmobiliarios are in Madrid, Barcelona and several places along the Mediterranean Coast. The portfolio includes plots that the buyer will have to reclassify in order to be able to sell, resell or transform them, as well as plots that are ready for development. It is precisely in those assets that so many property developers have expressed their interest.

Banco Sabadell obtained a profit of €138 million from the sale of 80% of Solvia, its real estate subsidiary, to Lindorff, a company that belongs to the Intrum AB group, for €300 million. With that operation, Sabadell, which has retained ownership of the remaining 20% stake in Solvia, achieved a positive impact on its Common Equity Tier 1 (“fully loaded”) capital ratio of 15 basis points.

The completion of that operation, which is subject to obtaining the corresponding authorisations, is also scheduled for the second quarter of 2019 (…).

Original story: OK Diario (by Borja Jiménez)

Translation: Carmel Drake

Lennar Corporation Sells 30 Homes for €14M

22 January 2019 – Eje Prime

Lennar Corporation is continuing to squeeze its Socimi. Since October, Al Breck has sold thirty assets from its portfolio for €14 million. The operations have generated an accounting profit of approximately €5.8 million, according to a statement filed yesterday with the Alternative Investment Market (MAB).

This series of sales follows that of another 41 assets that the Socimi divested between June and October, whose volume amounted to €26 million and which generated a profit of €10.5 million.

The bulk of the divestments have been homes, together with storerooms and parking spaces. The plan forms part of the MAB entry strategy, which the company established when it made its debut. Then, the real estate firm owned around 639 rental homes, all located in the centre of Madrid. The Socimi formed its asset portfolio through a purchase operation from Segurfondo Investion in December 2014.

Original story: Eje Prime 

Translation: Carmel Drake