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Aedas Homes' earnings up 13% after delivering more than 2,700 homes in the last year

Aedas Homes has managed to reach 105 million euros surpassing its past earnings, following the delivery of more than 2,700 homes. This was announced in their last fiscal year (from April 1, 2022 to March 31, 2023). This is the best result they have obtained in their six-year history, although they detected a 10% slowdown in the sale of new homes.

Most of the homes delivered (2,120) are in the traditional private sale business, but the total number is supplemented by some 610 build-to-rent units.

The total sum of Aedas Homes' income was 919.8 million. Subtracting operating expenses, the amount of profit is summarized as delivered, resulting in a 4% increase over the previous year.

The developer aims to exceed 1,000 million in turnover, but has mentioned a "volatile situation" in the housing market, which has been slowing down for months (due to the 11.7% drop in home sales reported for the month of March).

These signs of decline show that developers are not oblivious to the reality in the real estate market that is occurring right now. The biggest impact is being seen on the build-to-rent side. The results that have been released show a 43% decline in home sales for the buy-to-let business. However, traditional home sales are up another 1%.

In an interview with the press, David Martínez, the company's leader, spoke of a drop in sales of "around 15%" for this year. He also added that this is part of the cyclical nature of the business and the increase in the cost of financing due to the European Central Bank's rate hikes. He indicates that this trend will begin to reverse in late 2023 or early 2024.

On top of all this, Aedas is relieved to know that traditional sales have held up the best so far. Already knowing about the increase in construction costs, the margin in the first business dropped from 29% to 28%. In build-to-rent, it fell from 25% to 19%. The best news of all is that the company has already sold 75% of the homes it expects to deliver in its next fiscal year, which will end in March 2024, and 32% of those for the following fiscal year.