Neinor sees plummet in stock market after lowering its deliveries of housing and new CEO

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

Neinor Homes shares fell more than 13% in the early stages of the session after lowering their deliveries of homes for the next few years due to construction delays, reducing their EBITDA forecast for this year and replacing their counselor delegate. Specifically, the company's shares were down 13.20% at 9.38 hours, until exchanged at a price of 9.37 euros.

Neinor Homes has reduced the number of homes that will deliver to customers in the next three years, mostly preventable due to the delays that are building up, was announced by the real estate, one of the new firms in the sector constituted after the crisis.

The company expects to deliver between 1,200 and 1,700 homes in 2019, compared to the initial goal of giving the keys to 2,000 homes, since in 2018 it fulfilled the goal of integrating 1,000 apartments.

By 2020, Neinor calculates that it will deliver to its buyers between 1,700 and 2,400 houses, although the initial objective was to give 4,000 annuals in that year and successive.

However, in 2021, the new calendar establishes that they will complete and will give between 2,400 and 2,750 floors. As of that date, it foresees a 'cruise speed' in terms of deliveries of between 2,500 and 3,000 homes per year.

Neinor Homes attributes the need to delay part of the deliveries to the delays that are accumulating the construction of the floors, a delay that attributes to the terms of obtaining licenses of work and to the "pressure" of the construction costs, before the "limited capacity" of the construction industry.

Thus, for 2019 Neinor forecasts a gross operating profit (EBITDA) of 70 million euros, about half of the 150 million initially estimated.

The real estate company has a portfolio of 2,750 pre-sold homes that correspond to 81% of deliveries initially scheduled for 2019 and 30% of those set for 2020 and successive years, the company said at its recent shareholders meeting.

Also, Neinor has appointed new CEO to Borja García-Egotxeaga, current director of Operations, replacing Juan Velayos. In addition, the real estate agent will have a deputy CEO, a position that will be held by Jordi Argemí, who will make it compatible with that of the Financial Director, and the Proprietary Director Jorge Pepa will be named Executive Vice President.

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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