Neinor Homes Sa Ord

And thank you for standing by. Welcome to the Nainor Homes 9-month 2022 results presentation. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 1 on your telephone, and you will then hear an automated message advising your hand is raised. If you wish to ask a question via the webcast, please type it in the Ask a Question tab, available on the webcast link any time during the conference. Please be advised that today's conference is being recorded. Now, I'd like to hand the conference over to your speaker today, José Cravo. Please go ahead.

Thank you. Hi. Good morning, everyone. My name is José Cravo, and I'm the Head of Investor Relations at Maynor Homes. Today, we are going to go through our nine-month results of the fiscal year 2022. As usual, we are here with Borja Garcia-Gocciaga, our CEO, and Jordi Adremim, our Deputy CEO and CFO. We will start the presentation with the key highlights of the nine months, then we will review the operation and financial performance of the businesses, and we shall finish with the main takeaways. After the presentation, as usual, there will be a Q&A session to answer any questions you may have. Now I'll hand over the presentation to our CEO, Borja Garcia-Gocciaga.

Thank you, José. I welcome all to this Q3 results presentation. And my first message is regarding nine-month results. We have delivered 1,548 units and recorded total revenues of €506 million, an EBITDA of €81 million and an adjusted net income of €53 million. As of today, we have delivered more than 2,000 units And therefore, we are happy to reiterate our guidance of between 2,500 and 1,300 deliveries and an EBITDA of between 140 and 160 million euros. The second message is that we keep executing our business plan, putting a big focus on the de-risking of cash flows. By December 2022, between our two business lines, we should have 8,400 units active and 5,900 units under construction or finished product, which provides us a good visibility for the coming years. Our commercialization performance remains resilient with a net absorption rate of 6.1%. This behavior is justified by the quality of our product, its location in the top six regions of Spain, where there is both population and household growth and a lack of new homes product. With the objective to protect margins, we have increased prices year-to-date, but we are also working on the cost side through a tight control of capex, opex, and overheads. Furthermore, on corporate debt, we have no refinancing risks until 2026, and we have a fixed cost of 4%. Whereas for development loans, where we are exposed to variable rates, we have recently acquired interest rate caps at 2% to the risk all the capex financing needed until 26 and 27. So we have no refinancing for interest rate risk until the years 26 and 27. The third message is on NANOR's strong and unique cash flow generation profile. Year-to-date, we have distributed €120 million to shareholders through dividends and buybacks, and still we expect to finish the year with more than €250 million cash position. We move to slide number six. Here you have a summary of our main operational and financial KPIs, which we will review through the presentation. Now please follow me to the section number two, where we will analyze our operational business performance. Design number eight, and as I said in the introduction, commercialization environment remains resilient. Despite macro uncertainty and price increases, our net commercialization absorption rate remains above 6%, and that is significantly above our historical average of 4.8%. I would also like to highlight that cancellation rates are historically low, and with more than 2,000 units notarized here today, our clients are not having problems in getting financing from Spanish banks. Moving to the next slide on acquisitions. And as we have always said, Nino follows a very disciplined and opportunistic investment strategy, and we have a proven track record in raising the cycle. During the third quarter, we have decided to jump on some opportunistic deals and close the acquisition of 600 new units. Still, today our main focus has shifted to execute and de-risk our business plan and generate cash flow. So please follow me to slide number 10. Here we have a snapshot of our rental portfolio. As you can see, we continue to launch new rental projects and we now have 3,861 units in different stages of development with potential rents of 42 million and gross asset value of 900 million. Nino's strategy is to create a portfolio of prime assets in a deeply undersupplied market where there is a virtually no new housing product available. we will follow an opportunistic strategy with our portfolio or flexibility. In slide number 11, you can see operational performance of the Gilding portfolio, which reflects the strong demand for rental product in Spain, as well as the unique characteristics of our built-to-rent portfolio. Occupancy is stabilizing between 96% and 97%, as we see some tenant rotations. Year to date, we have renegotiated 121 contracts, of which 12 are renewals and 109 are new leases on which we increased rents by 15%, a very strong figure that demonstrates the fundamentals of the rental business. As we have said in the previous presentation, we are getting closer to the deliveries of the rental portfolio over the coming months. three new projects to be delivered, Sky Homes, Buena Vista Homes, and Europa Homes, with more than 400 units. For these three assets, we have seen interest by a total of 1,659 potential tenants, which gives us a lot of confidence on the leasing course of these assets and potential rents to be achieved. Now I'll hand over the presentation to Jordi so that he can review the financial performance.