Total revenues: €389mn – 1,178# notarized during 1H22 at an ASP of €321k/# driving total development revenues to €378mn (+21% YoY). Other revenues, generated mostly from the servicing contract with Kutxabank, fell 32% YoY to €9mn as the contract was terminated in May. Revenues from the rental business reached €2.1mn.

Gross profit: €99mn  – Accordingly, margins declined 2.5pp YoY to 25.3% as the servicing contract gradually fades away. Nonetheless, gross profit grew 8% YoY benefiting from volumes in the development business where notarizations increased 32% - the highest first semester figure in the history of Neinor (1,178# vs 891# in 1H21).

Adj. EBITDA: €60mn – EBITDA grew 3% YoY, reflecting the underlying trends mentioned above, and covering 40% of FY22 guidance (€140-160mn).

With 60% of FY target deliveries (2,500-3,000#4) taking place during 2H22, we are fully on track to meet FY22 guidance.

Adj. Net income: €39mn – The 19% YoY decline in net income was driven mainly by: i) s one-off gain of €11.6mn in BTR margin related with the acquisition of Sardes Portfolio that took place in January 2021; ii) a 100% increase in financial costs, primarily from the issuance of €300mn Green Bond in April 2021. Excluding the one-off BTR gain, net income is in line with previous year.

Adj. net debt: €326mn – Strong cash flow generation continues post the Quabit merger and Adj. ND decreased by 34% YoY, maintaining very prudent leverage ratios of 19% LTV and 2.2x ND/EBITDA. On the other hand, Neinor continues to exhibit a very strong cash position of €300mn.

Shareholder  remuneration: €120mn – YTD Neinor has distributed €100mn in dividends to shareholders pertaining to FY21 and FY22 results. In addition, the company has invested c€20mn in its 3rd and 4th share buyback plans.

Deliveries: During 1H22, Neinor delivered 1,178# with the following geographical  breakdown: North (13%); Centre (33%); South East (36%); South West (2%); East (10%); Levante (6%). Of total deliveries, 24% belong to Quabit’s portfolio.

Commercialization activity: Despite the prevailing macroeconomic uncertainty , the fundamentals of the Spanish residential sector remain extremely solid, driven by secular demographic changes and a structural lack of new housing product that has been compounded over the past decade. During 2Q22 Neinor pre-sold 470# (971# on 1H22) equivalent to a 6.7% monthly net absorption rate – the highest of the last four quarters and despite intensifying price increases (6% annually).

Orderbook: At the end of 1H22, the orderbook had a total of 2,636# with a corresponding  value of €707mn – implicit ASP of €268k/#. By region, and as a percentage of total units, the orderbook has the breaks down as follows: North (12%); Centre (22%); South East (20%); South West (5%);  East (23%); Levante (18%). Of the total orderbook, 78% is registered as private contracts and the remaining 21% as reservations. This forward sales position offers 96% and 51%  visibility on 2022 and 2023 target deliveries.

Land acquisitions: After having acquired €650mn and +10,000# during 2021, Neinor has not closed any new land acquisition  YTD – at the end of the first semester, Neinor has a land bank of c15,600# to which corresponds to a GAV of €1.7bn. In light of the current macroeconomic scenario, we envisage growing opportunities in 2H22 and 2023 and in the meantime the company remains highly disciplined on its capital allocation policy which follows a balanced approach between: existing land bank, new investments, leverage and shareholder remuneration.

Letting activity: As of July, the rental portfolio has reached full occupancy at 97% and a corresponding GRI of €4.8mn equivalent to a 4.5% yield. YTD, Sardes’ portfolio has further increased its occupancy signing new leases on c7,000sqm with a 16% implicit rental increase. Hacienda Homes, Neinor’s first BTR project, is currently 98% occupied, only 7-months after delivery. This strong performance confirms that the Spanish rental market is deeply undersupplied with a clear scarcity of new product.

Rental platform: Neinor has significantly accelerated launches YTD and, as of July, its  rental platform has 3,645# underway of which 542# are yielding, 1,669# are under  construction and 1,275# launched. The expected stabilized GRI of these projects exceeds €40mn with a potential c€890mn GAV. This places Neinor on track to reach its medium-term target of 4,600# portfolio with €48mn GRI and potential +€1bn GAV.

HMB Project: Phase I is completed with six developments launched comprising a total of 638#  - Neinor has a 25% stake on this project. This represents 14% of the total project which comprises 4,500#.