AEDAS Homes, a leading Spanish homebuilder, held its 2024 Annual General Meeting today, 24 July, during which CEO David Martínez presented FY 2023/24 results, the best in company history. At the meeting, the company’s shareholders approved, among other items, the annual accounts and the distribution of a final dividend of €0.24 per share against FY 2023/24 profit, as well as an extraordinary dividend equivalent to €2.01 per share against the share premium account, bringing the total dividend AEDAS Homes will pay out for the past fiscal year to €4.50 per share.
In FY 2023/24, the developer generated €1.15 billion in revenue—up 24%—a new milestone in the sector’s current real estate cycle, thanks primarily to the delivery of 2,938 homes (2,456 Build-to-Sell, 383 Build-to-Rent and 99 via its Real Estate Services division). Mr Martínez described the results as “excellent”, pointing out that “despite economic and geopolitical uncertainties, AEDAS Homes has once again achieved its annual goals and shown that we are a predictable and reliable company, thanks to a business model that produces sustained and sustainable growth, and an excellent team of professionals”.
Credit rating among the highest in Europe
Earnings-wise, Mr Martínez highlighted the gross margin of €256 million (22.4%), EBITDA of €173 million and total net profit of €109 million, stating that these figures “once again confirm our capacity to generate strong results for shareholders with attractive returns, while maintaining a sound cash position, which reached €240 million (up €40 million), and very prudent leverage levels, with a net LTV of 16.3% and 1.8x net debt to EBITDA”. He then described this situation as “providing the company with a comfortable level of liquidity and allowing it to be ready to capture new investment opportunities”, noting that “AEDAS Homes' credit ratings are among the highest in the real estate development sector in Europe”.
Among the items approved by AEDAS Homes shareholders at the Annual Meeting were the FY 2023/24 annual accounts, the distribution of a final dividend of €0.24 per share against FY 2023/24 profit, the distribution of an extraordinary dividend equivalent to €2.01 per share against the share premium account, and the dividend payment schedule (€1.35 per share to be paid on 1 August and €0.90 per share to be paid sometime between 15 and 31 December). In this way, AEDAS Homes will pay total dividends corresponding to FY 2023/24 of €4.50 per share, representing a payout ratio of 178%, and thus exceeding €440 million in total dividends paid to shareholders since 2020.
Strong visibility
In his speech to shareholders, Mr Martínez also emphasised the strong outlook for AEDAS Homes, thanks to its land bank with a development capacity of 14,224 units as of 31 March, of which 9,888 were active at that time. Of these active units, the company had 5,038 under construction and over 1,000 completed and pending delivery. Mr Martinez also highlighted the company’s Order Book, with 3,367 homes already sold, and a total value of €1.24 billion, pointing out that “these numbers provide good visibility on revenues for the coming fiscal years”.
He went on to explain that these figures “confirm, once again, AEDAS Homes’ extraordinary operational capacity and leadership of the Spanish residential market in terms of production and delivery of homes”, highlighting the company's investment capacity and its selective investment policy, thanks to which it invested €222 million in new land—largely ready-to-build and with a development capacity of 2,564 units—over the period. Mr Martinez then pointed out that “these transactions confirm our ability to identify and acquire the best land, thereby ensuring our production and delivery levels for the years to come”.
The company’s CEO also noted the resilience that the company continues to show as a result of this selective and disciplined investment policy, confirming his assertion by mentioning the company’s Gross Asset Value (GAV), which stood at €1,895 million at the end of the period, and its Net Asset Value (NAV) of €32.63 per share. “In terms of Gross Development Value (GDV), that is, once the development of this land is completed, the total value of these assets in attributable terms comes to €5,024 million”, he explained.
Real Estate Services: a key contributor to growth
Mr Martinez made a point to draw shareholders’ attention to the significant growth in the company’s asset-light Real Estate Services business line, through which AEDAS Homes, as a trusted industrial partner, provides value-added, end-to-end development services to institutional investors and family offices. He explained this line as “a complementary activity to the company’s residential development business line, which allows us to leverage on our capabilities to generate additional revenue with minimal capital consumption and explore new market opportunities”.
Mr Martinez explained how AEDAS Homes, through its Real Estate Services division, successfully closed two co-investment agreements worth €290 million in the past fiscal year, demonstrating the division’s capacity to generate land investment opportunities and attract third-party capital. He also emphasised that AEDAS Homes, via Real Estate Services, maintains a strong commitment to affordable housing through public-private partnership projects such as the Madrid Regional Government’s Plan VIVE scheme, for which AEDAS Homes is managing the development of close to 3,600 affordable rental units, noting that the company has been awarded close to 1,000 additional units in the scheme’s third phase.
Commitment to sustainability: ESG progress
In addition to AEDAS Homes' commitment to affordable housing, Mr Martínez stressed the company's environmental, social, and governance commitments as integral to its activity, underscoring the developer’s responsibility to continue implementing Modern Methods of Construction (MMC) as part of its drive to build more sustainably and the importance of having a solid corporate governance structure. He explained: “On the back of having achieved all the milestones in our ESG Strategic Plan 2021-2023, such as carrying out Life Cycle Assessments (LCA) on 100% of our developments, or ensuring that at least 25% of the homes we delivered from 2023 were built fully or partially offsite, we have launched a new ESG Strategic Plan for the 2024-2026 period, once again linked to the United Nations Sustainable Development Goals (SDGs)”.
Positive outlook for the real estate market
Mr Martínez concluded his speech by emphasising how the company’s record FY 2023/24 results served to consolidate AEDAS Homes as the leader in the Spanish residential market and expressed optimism about the evolution of the real estate sector and the market for new-build homes. He wrapped up his speech by saying that residential demand in Spain has “demonstrated enormous resilience despite the climate of uncertainty, regulatory changes, and the evolution of interest rates to curb inflation” and that developers have both the “opportunity and responsibility to respond to this need for housing and to contribute to the construction of more efficient and environmentally-friendly homes””
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