Inmobiliaria del Sur (ISUR) Q2 2024 earnings summary

Executive summary

• Turnover rose 53.3% year-over-year to €70.1m, driven by strong growth in promotion (+54.1%) and construction (+148.0%) activities.

• 1H24 saw record promotional activity, with 268 homes sold (+46.8% year-over-year) and pre-sales volume up 15.6% to €272.4m.

• EBITDA increased 6.7% to €18.4m, with adjusted EBITDA up 42.6% to €12.2m; net profit grew 36.9% to €9.7m.

• Net financial debt reduced by 7.2% to €223.2m, lowering LTV to 37.8% from 40.6%.

Financial highlights

• Revenues reached €70.1m (+53.3% year-over-year); homebuilding €45.7m (+54.1%), rentals €9.0m (-0.4%), construction €13.2m (+148.0%), services €2.2m (+30.0%).

• EBITDA €18.4m (+6.7%), adjusted EBITDA €12.2m (+42.6%), EBIT €16.2m (+26.8%), net profit €9.7m (+36.9%).

• Total investment €49.8m (mainly works execution); NAV per share €19.5, stock price €8.25 (39.7% discount to NAV).

• Net financial debt at €223.2m (-7.2% vs 4Q23); LTV at 37.8%.

Outlook and guidance

• Significant volume of deliveries scheduled for 2H24 (€97.5m, €81.2m proportionally) expected to drive further increases in EBITDA and net profit.

• Construction of 388 additional homes planned to begin in 2024.