Dear fellow shareholders:
Once again, I have the pleasure of presenting this year’s Integrated Annual Report, which includes the company’s most recent operating and financial figures, as well as an account of the progress we are making on the environmental, social, compliance and corporate governance fronts. Beyond providing our mandatory disclosures, we strive to outline what is inspiring us and moving us forward. Allow me to briefly summarise the efforts made in FY 2022-23 to achieve our business goals and lead the real estate sector in the transition towards a more sustainable future.
In our last fiscal year, which ran from 1 April 2022 to 31 March 2023, the company delivered a standout performance, generating €105 million in net profit, revenue of €920 million and FFO of €119 million. These figures confirm that AEDAS Homes continues to make good on its commitment to being Spain’s benchmark residential developer, achieving the ambitious goals we set ourselves when we went public in 2017.
AEDAS Homes continues to make good on its commitment to being Spain’s benchmark residential developer and has achieved the ambitious goals we set when we went public
Despite the economic headwinds derived from the rise in interest rates and general economic uncertainty, the Spanish homebuilding sector had a solid 2022. The shortage of ready-to-build land, coupled with the return of international buyers seeking new-build homes in Spain, has kept the pace of sales buoyant, while prices, despite the gloomy forecasts, have continued to rise.
As we have been saying since the company’s founding in 2016, homebuilders will not encounter the same fate in all markets, given that residential investment is concentrated in areas where demand, driven by demographic or economic factors, continues to grow — and this occurs in only a minority of markets. At AEDAS Homes we understand that making a strategic commitment to a narrow set of goals is the correct way forward. For this reason, we have continued to execute a very selective investment strategy, focusing on high quality, ready-to-build land in the six most dynamic areas of Spain.
Beyond meeting our business goals, at AEDAS Homes we are firmly committed to contributing to the 2030 Agenda for Sustainable Development, as a signatory to the United Nations Global Compact. To this end, we are fulfilling the environmental, social and corporate governance objectives set out in our ESG Strategic Plan 2021-2023, which will ensure that we become a leader in Spain in making the cities and regions where we operate more inclusive, safer, more resilient and more sustainable by 2030.
The fight against climate change is the central axis of our roadmap. By 2030, we intend to halve the carbon footprint of our developments and to achieve this, we are committed to using Modern Methods of Construction and sustainable materials in our developments. This is why by FY 2023, 25% of the homes we deliver will be built offsite or incorporate a range of precision-built industrialised components, opening up a new path for the homebuilding sector.
Beyond meeting our business goals, we're firmly committed to the 2030 Agenda. To this end, we are fulfilling the environmental, social and good governance objectives set out in our ESG Strategic Plan
Nothing we do is the product of a single individual. The AEDAS Homes teams across Spain undoubtedly play a leading role, but they are not the only participants driving this process. In order for us to multiply our positive impact and contribute to the sector’s transformation, we rely on the collaboration of our shareholders, customers, partner suppliers and society in general. These groups helped us throughout the year to meet our goals, in a process of value co-creation that makes us more resilient. My most sincere thanks to everyone for their contribution.
Firstly, I would like to acknowledge the hard work and efforts of the 302 professionals that make up the AEDAS Homes team at our headquarters in Madrid and in our six Regional Branches. It is their talent and experience that helps us to build and improve the company day by day and serves as an inspiration to the rest of the sector to follow in our footsteps. In return, we offer our employees a stimulating working environment, which has been recognised by as a Great Place to Work for two years running.
Secondly, let me acknowledge our shareholders, who support our activity and incentivise us to continue our journey on the path towards sustainability. Our shareholders provide key support for our business and a spur for our sustainability thrust. We reward their loyalty with an attractive remuneration policy which every year translates into handsome yields, as borne out by our inclusion in the Ibex Top Dividend index in 2023.
Thirdly, our customers. Our focus on listening actively to what they want and need has been essential in the value creation process. In our interactions with our customers, we find our inspiration to innovate and improve the products we offer, and the services linked to them. Our commitment to personalisation, best embodied by our new flagship showroom, and the first sales closed 100% online, are a response to their aspirations.
We reward their loyalty attractive remuneration and have been recognised by our inclusion in the Ibex Top Dividend Index in 2023
Progress towards sustainable construction also requires the joint work of architecture firms, construction management and execution teams, construction companies and sales and marketing companies. These suppliers made it possible to deliver 3,544 homes to our stringent quality and safety standards. We want to continue to strengthen our relationship with them and, for this reason, we are working to build a Developer Operating System, which will fully integrate all the companies that participate in our developments.
Our responsible way of understanding residential development has also spurred us to get involved in one of the most pressing challenges facing Spanish society today: access to housing. Over the course of the year, we broke ground on almost 2,500 affordable rental units for the Plan VIVE scheme and we delivered 60+ affordable homes to customers. In addition, we have contributed to designing the cities of tomorrow by participating in different sector forums, while lending our support to cultural, social and sports programmes in the communities where we operate.
This past year has been one of significant progress, carried out under the umbrella of an efficient and transparent governance model. AEDAS Homes, and of course, the Board of Directors that I chair, is deeply committed to the principles of good governance and strict compliance with the law, not only because it is our obligation, but because we are convinced that this way of doing things simply does not have a Plan B.
Many thanks,
Santiago Fernández Valbuena
