Click here to download the FY 2017 Annual Results Presentation. Management will present the earnings in a webcast call at 1pm CET, click here to register.

• Land bank of fully-permitted plots increased to c. 12,500 units, thanks to accretive acquisitions of EUR 286 million with an implied gross margin of c. 27%. Company working deeply towards soon finalizing strategic land deals deploying limited equity whereby it shall be able to control non-fully permitted land in a capital-efficient way

• Accelerated developer activity in Q4, with the year closing with c. 8,300 active units in 90 sites, already securing the deliveries expected by 2020.

• Company increasing run-rate guidance to 4,000 units for 2020 and beyond, and expecting to double deliveries every year in 2018, 2019 and 2020.

• Reported gross margin of c. 28% for sites in construction, which totaled 2,436 units at the end of 2017. Over 800 housing starts in the year, in a challenging environment of Municipalities’ timings for granting licenses

• Pre-sales order book increased to 2,246 units (EUR 746 million), providing heightened visibility for 2018 and 2019 revenues

• 9% extra revenues captured during the year, with an expected margin impact of 3%+, ahead of 0.9% Company expectations. Observed HPA in Company developments on the market for the full year, and with transactions in like-for-like units, was 8.5% y-o-y

• With 3 sites (128 units) delivered in Q4, a total of 8 sites (313 units) were delivered in 2017, ahead of expectations, and with gross margins of c. 28%

• 61% of the legacy assets were sold during 2017, for a total consideration of EUR 126m; servicing outperformed expectations with and EBITDA of EUR 18.5 million, and a margin above 60%

• Financial statements showed total revenues of EUR 225 million, with the highlights for EUR 114 million of legacy liquidation and EUR 77 million of development deliveries. EBITDA Adjusted of EUR 8.3 million, ahead of expectations

• NAV increased 8% YoY to EUR 1,291 million. Savills valuation increase driven by strong pre-sales and HPA, accretive acquisitions and site de-risking reducing discount rate

• Company continues to lead the sector transformation, with the implementation of 20 internal Digital Transformation projects including tools already in use based on Big Data, Artificial Intelligence and Augmented Reality; also, imminent selection of 10 prop-tech ventures from venture builder Neinor Next, to collaborate with the company with their pilot projects in Q1 2018. Finally, Neinor Homes achieved the Global Excellence Award EFQM 300+, becoming the first Spanish developer post-crisis to get such certificate

Madrid, February 22^nd, 2018.- Neinor Homes has just submitted to the CNMV (the Spanish stock regulator) a relevant fact, to communicate the results for the year ended December 31^st, 2017. Highlights below:

• Acquisitions: 3,100 units of fully-permitted, top-quality land was acquired for EUR 286 million in Costa del Sol, Girona, Madrid, Malaga, Montcada I Reixac, Sabadell, Seville, Sopelana, Sitges, Tarragona and Valencia. Land bank at the end of the year stood at 3+ years of the revised annual run-rate. Additionally, Neinor Homes is working intensely towards implementing in Spain the Anglo-Saxon model for strategic land, whereby attractive non-fully permitted land can be secured in a capital-efficient manner and without taking planning risk into the balance sheet

• Accelerated development activity: 90 active sites with c. 8,337 units in production; 36 sites in construction for 2,436 units; and 8 sites delivered: 313 units, ahead of IPO guidance. The Company has increased to c. 66% (up from 44% at IPO) the proportion of the land bank in production

• Revenue visibility: The Company pre-sold 289 units in Q4, for yearly sales of 1,353 units, and a cumulative order book of EUR 746 million and 2,246 units. The order-book provides 80%+ and c.60% visibility on 2018 and 2019 deliveries, respectively

• Additional revenues captured due to rising prices and expected margin impact: in an inflationary environment due to the supply-demand imbalance, the Company has been able to capture 3.9% extra revenues measured 1) for the units that have been actually pre-sold 2) as the difference between the price at the date of pre-sale and the price in the company business plan. This 3.9% (ca. EUR 17 million) extra revenues, are expected to translate into a positive margin impact of 3%+, once the effects of cost inflation are factored in

• Observed HPA: Company has observed across its different regions an annual HPA of 8.5%, as measured in 1) developments that have been on the market for most of the year and 2) those that had pre-sales in comparable units at the beginning and end of the year. The national average is comprised of the leaders Center (Madrid) and East (Catalonia) with 11% and 10.8% respectively, and the North (5.5%) and South (6.9%), with increases in line with the National Statistical Bureau or TINSA indices

• Deliveries: Dehesa Homes in Madrid (77 units), Pintor Alsamora Homes in Barcelona (34 units) and Jardines de Zabalgana IV in the Basque Country (17 units), were delivered on budget. Dehesa was delivered on time, while Pintor Alsamora and Jardines de Zabalgana IV were anticipated from Q1 2018. Also, Dehesa Homes and Pintor Alsamora are the first “pure” Neinor Homes to be delivered, having been acquired as land in 2015, later designed, launched, fully pre-sold, and now delivered. Total deliveries of the year up to 313 units, with EUR 77 million flowing through the P&L and a gross margin of ca. 28%

• Guidance: the Company’s Board has just approved the business plan 2018-2022, confirming its decision to increase the run-rate deliveries to 4,000 units from 2020 onwards, and with a path to run-rate which doubles the deliveries every year from 2018 to 2019 to 2020.

• Ancillary businesses: sales of EUR 126 million of legacy (including EUR 11.9 million of legacy assets under rental contracts) plus EUR 18.5 million of servicing EBITDA providing cash flows for the company through ramp-up. The Company is increasing the marketing effort to liquidate all legacy assets by the end of this year.

• Sector transformation: Company-wide effort to continue its march into Digital Transformation with 20 internal projects implemented, including the Big Data Tool for Acquisitions and the Customer Centric application for marketing information management. Neinor Next will soon announce the 10 prop-techs that will be testing their pilots inside Neinor Homes. On the environmental side, Dehesa Homes became the first finished site to get the BREEAM certification, while the number of projects with BREEAM certification in in design phase grew to 27.

Juan Velayos, CEO of Neinor Homes, commented that “the Company closed a very strong year, after an extraordinary effort to launch projects and thus secure the deliveries planned over this year and the following two. We have therefore decided to increase the run-rate guidance to 4,000 units from 2020 and beyond. Neinor Homes is sitting on 12,500 units of prime, fully-permitted land bank, which we continue to grow with accretive acquisitions; and has the first-mover advantage, which with the steady flow of deliveries, double each year over the next 3 years, we expect to maintain and increase.”