AEDAS Homes reports quarterly profit of €3.2 million and confirms its solid financial position

AEDAS Homes reports quarterly profit of €3.2 million and confirms its solid financial positionRevenues increased fivefold to €70 million, thanks to the delivery of 167 homesGross margin came in at 28.4%, at the upper end of the expected rangeThe company faces the present scenario with sales coverage that will secure close to €1 billion in revenue over the next two years      May 2020.- AEDAS Homes, a leading developer in Spain’s new real estate cycle, reported €3.2 million in profit during its three-month fiscal year 2020 Results presentation, compared to a loss of €3.5 million reported for the same period a year ago. Thanks to the delivery of 167 homes, the developer brought in revenues of €70 million in the first three months of 2020, five times its revenues of €14 million in the same period in 2019. Gross margin came in at 28.4%, once again at the upper end of the range the company transmitted at IPO, and the homebuilder reported €7.9 million in gross operating profit (EBITDA) and an EBITDA margin of 11.3%.With these financial results, the developer closes a three-month fiscal year, following a decision approved at the Annual General Meeting held on 30 March to change the fiscal year, which will now run from 1 April to 31 March.David Martínez, CEO of AEDAS Homes, pointed out that during this period, the company has continued to generate positive operating cash flow, saying, “This, combined with our strong order book, will allow us to face any challenges that lie ahead in the new market context. Given the truly unprecedented nature of this situation, it is very difficult to offer forecasts at this time, but the residential sector will come out of this reinforced.”The leader of the homebuilder highlighted its capacity to generate cash as well as its access to an additional €547m in additional developer loans to finance construction works. In this way, the company’s net financial debt stood at €267 million, reflecting a robust capital structure with a 13% LTV.Visibility and coverage for the coming monthsIn January and February, sales increased by 51% compared to the first two months of 2019, and overall, the company sold 340 units in the first three months of 2020, 13% more than the same period a year ago. Despite sales offices being closed for several weeks during the lockdown period, few cancellation requests have been received, and the homebuilder has been able to maintain its sales activity via online channels, especially through its LIVE virtual tours platform. Furthermore, as a means of mitigating the effects of the crisis, the company offered customers the option to defer their monthly payments in April and May, with 18% of customers opting to do so.“Customers continue to be very interested in buying a new home”, Mr. Martínez pointed out, a fact which is underscored by the company’s present order book of 2,911 units, with a value of €964 million. These forward sales cover 81% of deliveries through the end of March 2021, and 42% of deliveries for the following year, thus ensuring heightened visibility over the next two years, estimated at close to €1 billion.The company, which is still in its ramp-up phase, has a total of 5,625 units on the market, with 4,627 units under construction—strong figures that ensure deliveries over the next 24 months. The company has already completed construction on 8% of the units slated for delivery in 2020-21 and enjoys strong visibility on its future deliveries as well, with construction underway on 91% of deliveries scheduled for 2021-22 and 16% for 2022-23.“This ‘new normal’ will bring us —as it already has in the past two months— new ways of forming and building relationships with our customers, as well as reinforcing the concept of home as a safe haven asset, both for families and for investors”, Mr. Martinez concluded.