Dear AEDAS Homes shareholders,
It is my pleasure once again to introduce this year’s Integrated Annual Report, which provides an account of our financial and business performance, paying particular heed to social, environmental, compliance and governance matters. As I have said in the past, we report on those matters not because we have to but because they act as our compass. In these introductory lines, allow me to sum up the hard work we have done in FY 2023/24 to deliver our business targets while leading the transformation of the real estate sector towards a model driven by sustainability, innovation and technology.
Despite the backdrop of economic and geopolitical uncertainty, AEDAS Homes’ revenue surpassed the one-billion-euro mark for the first time this past year, as we reached the cruising speed we had been aiming for. We delivered the targets set down in our business plan for the sixth year in a row, consolidating our benchmark position as Spain’s most reliable homebuilder and generating a net profit of €109 million, total revenue of €1.15 billion and funds from operations (“FFO”) of €116 million.
Despite higher interest rates, the Spanish economy remained dynamic throughout 2023, outperforming the eurozone and the consensus forecasts, while the residential sector proved resilient thanks to continued strong fundamentals: strong demand and a limited supply of new-build housing, a scarcity of ready-to-build land, good levels of household savings, sustainable debt levels and financially-healthy developers. Those same fundamentals bode well for the years to come.
At AEDAS Homes we remained true to our strategy of focusing on providing quality housing Spain’s most dynamic markets, investing in land selectively. We closed two co-investment deals last year for close to €300 million, evidencing our credibility as a trusted industrial partner in the eyes of institutional investors and family offices.
We have shown that we are a predictable and reliable company, thanks to a business model that produces sustained and sustainable growth
Our company is firmly committed to helping to deliver the 2030 Agenda for Sustainable Development as a member of the United Nations Global Compact. Our commitment to sustainability is intrinsic to our business approach. Having successfully delivered the social, environmental and governance targets set down in our ESG Strategic Plan 2021-2023, this past March the Board of Directors approved a new and more ambitious ESG Strategic Plan 2024-2026 with the ultimate goal of making us the leading developer in the construction of sustainable, resilient and inclusive cities in Spain.
We are very aware of the risks posed by climate change and the challenges facing the real estate sector in transitioning to a more sustainable economic model. At AEDAS Homes we want to lead that transformation through the use of offsite construction and sustainable materials. Having already achieved our target of building some or all of 25% of the homes we deliver offsite, we are now aiming to raise that percentage to 30% by 2026.
Our earnings performance is likewise the result of the fine work done by the AEDAS Homes team. However, it also reflects our partnerships with our shareholders, customers, suppliers and society in general, which are essential to multiplying our positive impact and truly contributing to the sector’s transformation. They have all helped us deliver our targets as part of a symbiotic value creation process. My sincere thanks to all of you.
Once again, I would like to acknowledge our 311 excellent professionals, whose passion, talent and experience improve AEDAS Homes day after day. Human capital is unquestionably a differentiating factor in our sector, and we go to great lengths to provide a stimulating work environment, which is why we are pleased to have been named a Great Place to Work for the third year in a row.
The loyalty and commitment of our shareholders strongly motivate us to meet our targets. We have reciprocated once again with attractive shareholder remuneration, with a generous dividend year after year.
Actively listening to our customers is helping us build better homes and offer better services, framed by constant innovation and our commitment to offering product personalisation.
The sector’s transition to offsite and sustainable construction requires close collaboration with architecture firms, construction companies, construction oversight teams, sales agents, health and safety coordinators and sustainability consultants. To enhance coordination and facilitate relations with all these stakeholders, we have developed a Developer Operating System which brings all the parties involved in our developments together in a single platform.
Along the social dimension, we are proud to support affordable housing initiatives through public-private partnership models. Construction is underway on close to 3,600 units for the Madrid regional government’s affordable rental housing scheme, Plan Vive, and this year we will break ground on another 700 affordable units for rental. In FY 2023/23 AEDAS Homes delivered over 240 affordable units and continued to support charitable, cultural and sporting activities in the communities in which our developments are located.
The advances made once again last year were possible thanks to the effective and transparent governance model we have been committed to ever since AEDAS Homes was founded. The Board of Directors I chair and indeed all of the company is unwaveringly committed to best practice in corporate governance and stringent compliance with all applicable rules and regulations. That is our obligation and this is how we understand the business.
Thanks for your vote of confidence,
David Martínez
