Neinor Homes has closed H1 with EUR 596 million in total accumulated pre-sales or 1,797 units pre-sold. This is one of the main conclusions detailed at the H1 2017 results presentation submitted to the CNMV (the Spanish stock regulator) as a Relevant Fact.

In this sense, the rate of pre-sales has been accelerated during Q2, heightening visibility for revenues in 2017, 2018 and 2019.

The 4.8% HPA captured during the period, 3.9% ahead of Company’s expectations, has been led by the strength of demand in the East and Central regions.

Following accelerated launches and commercialization starts, the activity has been increased with 64 developments (4,800 units) in production at the end of H1, of which 28 sites (1,913 units) are in construction.

In this way, the company has increased the portion of the land bank that is already in production, from 40% in the first quarter to 44% at the end of the semester.

Three sites successfully delivered

Regarding the housing deliveries, during the first six months of 2017, Neinor Homes has delivered a total of 153 units, corresponding to three residential complexes delivered on time and in line with target margins, and yielding revenues of EUR 25.6 million with a gross margin of ca. 27%.

Two of these three housing developments were delivered during Q2, Port Forum Homes and Las Salinas Homes, in Barcelona and Malaga respectively.

The Neinor Experience department managed the notarization process in a short period of time and organized successfully the ‘Neinor Key Days’, informative sessions with the customer, before the housing delivery, where the company offered detailed descriptions to clarify doubts and exhibit a 360º virtual tour to discover almost all the corners of their new home.

Regarding the land acquisition process, thirteen fully-permitted land plots were acquired between January and June for EUR 157.5 million, representing ca. 1,750 buildable units. 

Of these, six assets were acquired in Q2 for EUR 105.9 million. They correspond to fully entitled land located in Valencia, Las Rozas de Madrid, Estepona (Malaga) and Sopelana (Basque Country).

The ancillary businesses have kept producing cash to re-invest in the development business, with almost 40% of the legacy assets in the balance sheet at the beginning of the year already sold, 16% ahead the expectations of the accumulated of the year.

The first Spanish developer to adhere to the Code of Best Practices with the Spanish Tax Authority

Among the main milestones achieved in this period, it should be noted that Neinor Homes became the first Spanish developer to join the voluntary Code of Best Practices with the Spanish Tax Authority.

Juan Velayos, Neinor Homes’ CEO, highlighted the company clear-cut outperformance executed during the first half of the year.  

“We have completed 80% of the accretive acquisitions projected for the whole year; we have increased our order book to EUR 600 million, increasing revenue visibility; we have launched, started construction and delivered sites, on time and on budget, at an increased pace; and the ancillary businesses keep providing the cash to fuel the ramp-up”, he assured.

Thereby, as the CEO concludes, the company is frankly satisfied with the first half results and they undertake the second half year full of energy and motivation.

“We are quite satisfied with the first semester results, and deeply motivated for H2 to perform at least as strongly as in the first half of the year”, he said.

See below the H1 2017 results video: