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Glenveagh Properties plc ("Glenveagh" or the "Group") a leading Irish homebuilder announces its Interim Results for the period ended 30 June 2021.


Speaking today, Stephen Garvey, CEO, said: 

“Today’s results demonstrate the strength of our business proposition and are a testament to the hard work of the Glenveagh team and our partners. Despite the major headwinds caused by Covid-19, we have returned to profitability and increased our output. We have sold, signed, or reserved the 1,150 homes that we expect to deliver this year with a further 300 homes already reserved for next year. We’ve seen growth across our three core business segments and have made major strides in building a strong platform for future growth.


Ireland is in an accommodation crisis and needs upwards of 35,000 homes a year to keep pace with requirements. In Glenveagh, our focus is on getting supply into the system as quickly as possible and we have a clear path to our target of building 3,000 homes a year by 2024. By innovating and relentlessly focusing on getting affordable, sustainable homes into the market, we are confident that the business will continue to prosper and play its part in addressing one of the key social challenges of recent decades.”

322 units closed in the period despite 13 week lockdown; +162% versus H1 2020

Completion of the Premier Inn hotel site sale in Castleforbes for approximately €16 million as part of a forward funding transaction of approximately €70 million

During the period, the Group secured its first Partnership agreement with Fingal County Council for a proposed development of 1,200 new homes at Ballymastone, Donabate in north County Dublin

Strong progress on the share buyback programme with 20.5 million shares purchased in the period and 26 million shares purchased to date

The Group acquired nine suburban sites for total consideration of approximately €52 million (excl. fees and tax) capable of delivering over 2,000 units

€4.2 million reversal of previous impairment charge in Marina Village with sales execution ahead of expectation

The Group currently has 20 active construction sites capable of delivering 4,700 units having opened five new sites in H1 2021 with further openings expected in H2

All 1,150 units now sold, signed or reserved, with over 1,000 of those units either closed or with a binding contract in place

300 units reserved for 2022 following recent launches

Average weekly private reservation rate per site +58% year to date

The Group has exchanged contracts on the sale of the residential and second hotel sites in Castleforbes for €78.5 million

Heads of Terms have been agreed to forward fund 320 urban apartments with completion expected within 6 months

Glenveagh is investing €16 million in a second timber frame facility and a soil recovery facility, which will allow for the sustainable growth of the business to 3,000 units and beyond while also controlling costs

The Group is delivering two of the State’s first ever cost rental transactions with Clúid Housing, an Approved Housing Body, in Taylor Hill, Balbriggan and Barnhall Meadows, Leixlip


Press Release : Interim Results 2021

Glenveagh Properties PLC, a leading Irish home builder, today announces that Germany-based Union Investment, one of Europe’s leading real estate investment managers, has acquired the planned 262-bedroom Premier Inn hotel in Glenveagh’s development at Castleforbes in the Dublin Docklands.

The Premier Inn hotel will form a key component of a wider mixed-use development, which also includes 1,256 apartments, 12,545 square metres of office space known as the Freight Building and a second 219-bedroom hotel on the junction of East Road.

Construction of the Premier Inn hotel will begin in July of this year and is scheduled to be ready for business in Autumn 2023.

The transaction has been structured via a forward funding arrangement that will result in Union Investment taking ownership of the hotel. The hotel will be operated by UK-headquartered hotel group Whitbread PLC under its Premier Inn brand, as was previously announced by Glenveagh.

The company will commence construction of the 12,545 square metre office element of the site shortly, with construction expected to complete in Quarter 4 2023.

Stephen Garvey, Glenveagh Chief Executive, said:

“We are delighted to partner with the hotel experts of Union Investment on this project. This marks the start of delivery of a significant development in the Docklands which will provide a sustainable mix of residential, hotel and office accommodation in this prime city centre location. The project forms part of a wider masterplan for our Dublin Docklands sites and is testament to our commitment to keeping sustainable development at the heart of everything we do.”

CBRE and A&L Goodbody advised Glenveagh on the transaction.

Glenveagh announces Union Investment has acquired the Premier Inn hotel in its flagship development in the Dublin Docklands for approx. €70m

Glenveagh Properties PLC (“Glenveagh” or the “Group”) a leading Irish homebuilder listed on Euronext Dublin and the London Stock Exchange is holding its AGM today at 10:30 a.m. at 15 Merrion Square North, Dublin 2. This statement comments on the Group’s year-to-date trading and outlook for 2021.

On track to deliver 1,150 sales in 2021 with all units now sold, signed, or reserved.

Continue to focus on scale with 3,000 unit target per annum from 2024 and ambition for continued growth thereafter.

First Partnerships scheme approved by local authority for 1,200 units.

Eight site acquisitions for total consideration of approximately €48m capable of delivering over 1,900 units.

Strong liquidity position with available funds of €230m.

Medium-term Return on Equity (‘ROE’) target of 15% from 2024.

John Mulcahy, Executive Chairman, to transition to a non-executive Chairman role, effective from 1 January 2022.

Speaking today, Stephen Garvey, CEO, said:

 “Despite the unprecedented challenges posed by Covid-19, our business will deliver our target of 1,150 homes this year, with all now sold, signed or reserved. Our path to building 3,000 homes per year by 2024 is clear and we remain focused on delivering quality, sustainable homes that represent value for money for our customers.”

The on-going accommodation shortage, combined with higher savings rates, has resulted in a strong market backdrop for the Group. As a result, all 1,150 units for 2021 have now been sold, signed, or reserved and the business will look to start building its order book for 2022 over the summer months. For new reservations in the period, HPI of 5% is evident across our Suburban schemes.

Following a period of restrictions on construction activity which began in early January, full operations resumed on the Group’s existing construction sites from the 12th of April. In addition, the business has commenced construction on three new suburban sites which will deliver units from 2022.

As a result of the ‘catch-up’ in activity levels following the full re-opening of residential construction and global commodity price increases, we are experiencing CPI of approximately 5% on current tenders which will largely impact on deliveries from 2022.

Earlier this week, the Group welcomed the decision of Fingal County Council to vote in favour of proceeding with the proposed development of 1,200 new homes at Ballymastone, near Donabate in North County Dublin.

The Group was selected by the council as their preferred bidder following a competitive public tender process. The project will deliver much-needed housing units in the area, across a mix of social and affordable homes together with homes for the private market.

We will now move forward with the formal planning application and would hope to be ready to begin development in 2022.

The Group added to its development land portfolio in the period via eight new sites, two of which are adjacent to existing sites owned by the Group. Total consideration for these sites was approximately €48m (excl. fees and taxes) and can deliver over 1,900 units.

Inclusive of recent site acquisitions and our first Partnership scheme, the Group’s landbank is now approximately 17,000.

Given the strong progress made in respect of non-core disposals, notwithstanding a continued investment in land and work-in-progress, the Group are in a strong liquidity position with available funds of €230m.

The Group remains disciplined in its approach to the allocation of capital with the overriding objective of enhancing shareholder value. Our capital allocation framework prioritises:

Working capital investment across Suburban, Urban and Partnerships;

Investment in organisational and supply chain capabilities;

The replacement of land to ensure the Group maintains a five-year landbank capable of delivering 3,000 units per annum from 2024 where the Group are targeting an ROE of 15%.

Furthermore, the Board believes that the opportunities beyond 2024 are significant. The Board will therefore ensure that the Group has the resources to deliver the 3,000 units per annum from 2024, as well as the ability to invest in the next phase of growth.

In doing so, we will maintain a strong balance sheet with prudent leverage not exceeding 15% of net assets.

Beyond this we will consider the return of excess capital to shareholders in a manner which retains flexibility to capitalise on future growth opportunities. In this regard, we will continuously assess our medium-term plans which take account of investment in the business, growth opportunities, cash generation and net debt.

Based on the above parameters, we have currently identified €75m as excess capital and the Board intends to commence a share buyback programme of up to €75m on 28 May 2021.

John Mulcahy, Executive Chairman, has informed the Board of his intention to transition to a non-executive Chairman role, effective from 1 January 2022.

John believes that the company is at the appropriate stage of its evolution for his role to transition to a non-executive capacity and will work closely with the other executive directors for the rest of the year to ensure a smooth transition of all executive duties.

The Group continues to make progress across our six Sustainability pillars. In the period Glenveagh achieved two certifications from the National Standards Authority of Ireland (NSAI) - ISO 14001 Environmental Management and ISO 45001 Occupational Health and Safety. The ISO 14001 certification will help ensure that our business is focused on reducing our environmental impact, supported by effective management processes. ISO 45001 demonstrates that we are committed to improving employee safety, reducing workplace risks, and creating better, safer working conditions. A further update on our Sustainability agenda progress will be provided at the time of our Interim Results.

Our confidence in the future of our business is driving us to continue to pursue our growth strategy, delivering positive cash flows and ensuring we are well placed to continue to grow market share. This is underpinned by our strong balance sheet and capital allocation strategy, with a focus on delivering returns for our shareholders. Given the operational and demand backdrop being experienced, the Group remains confident in delivering 1,150 units in 2021.

On track to deliver 1,150 sales in 2021 with all homes now sold, signed or reserved

Glenveagh Properties plc ("Glenveagh" or the "Group") a leading Irish homebuilder announces its Final Results for the year ended 31 December 2020.

ATTRACTIVE CUSTOMER OFFERING DRIVING RESERVATIONS AND COMPLETIONS

· Customer leads +169% year-on-year in H2 2020

· Average weekly private reservation rate per site +31% year-on-year in H2 2020

· Strong forward sales with 9504 units currently sold, signed, or reserved (2020:475)

SECTOR LEADING CONSTRUCTION CAPABILITIES HIGHLIGHTED

· Strong delivery performance with 700-unit sales completed notwithstanding site closures due to Covid-19

· 1,150 completions expected for 20215 despite restrictions on construction due to Covid-19

· 23 cumulative site openings since IPO with a further six scheduled for 2021

RECOGNISED AS PARTNER OF CHOICE FOR INSTITUTIONS AND THE STATE

· Contracts exchanged with institutional purchaser for the sale of 132 units across two developments at Bray and Leixlip

· Contracts exchanged with Real I.S. for the sale of 134 units at Marina Village, with 65 completed to date

· Reservations in the year-to-date from Approved Housing Body ("AHB") for 85 cost rental units at two Suburban developments 

DISCIPLINED CAPITAL MANAGEMENT AND GROUP REFINANCING

· Accelerated sales of non-core units and sites to facilitate a €100 million cash inflow within 12 months, resulting in a €20 million impairment

‒ €54 million of non-core proceeds received to date with a further €42 million currently contracted for 2021

· On track for €100 million plus reduction in land with €91 million achieved to date

· Targeted €202 million WIP investment underpins 1,1505 deliveries in 2021

· Robust operational delivery resulted in a net-cash position of €36 million (2019: €53 million)

‒ Current net cash remains broadly in line with year-end position despite restrictions on construction and selling activity

· Completion of five-year €250 million refinancing comprising a term component (€100 million) and a committed RCF (€150 million)

· Sustainability report published outlining the Group's efforts across our six sustainability pillars

· Emissions reduction initiatives and corresponding 25% Scope 1 and 2 intensity reduction target outlined

· Commitments, targets and measurable outcomes published across our sustainability landscape

In what is a challenging operating environment where the Group has yet to exit a second period of restrictions on housing delivery (with only social housing units progressing), our sector leading delivery capability has enabled the sale of 700 units in 2020 and allowed the Group to target 1,1505 units for 2021. 

Demand for housing from our customers (private, institutional, and state agencies) continues to be strong and market fundamentals are in the Group's favour, more so now than in prior periods.

Management intends to present updated guidance to shareholders as part of our AGM on 27 May which will address the following: capital allocation; leverage policy; and medium-term ROE targets for the Group.

GLENVEAGH'S CHIEF EXECUTIVE STEPHEN GARVEY COMMENTED:

"The Group reacted quickly and effectively to the challenges of the Covid-19 pandemic, with the safety and wellbeing of our people, customers and local communities our priority. At the same time, we delivered a robust outcome for 2020, completing 700 units and are well-placed to deliver 1,150 units in 2021 despite restrictions on our construction operations.

I believe that the current challenges have broadened the long-term opportunity for the Group, with the fall-off in land transactions and commencement activity within the industry in 2020 a signal of the continuing gap between supply and demand. Our well capitalised platform which delivers across three business segments with access and affordability at the heart of our offering is best placed to help address this undersupply. And our ambition remains to scale the business to 3,000 units by 2024.

In, our first standalone Sustainability Report since we became a public company in 2017, we set out our approach to reducing Green House Gas ("GHG") emissions from our own operations and our supply chain, and the steps we are taking to reduce, re-use and recycle raw materials and resources.

We also explain the measures we are taking to keep our people and our contractors safe, to source responsibly, to attract, retain and inspire our people, to put customers at the heart of everything we do, and to create sustainable communities.

I would like to thank all our staff and industry partners who, despite the challenges faced, ensured we continued to operate safely and deliver for our customers and the communities in which we operate".

A conference call for analysts and investors will take place at 8.30am this morning to present the financial and operational results followed by a Q&A session. Please pre-register at the link below to ensure your attendance is confirmed ahead of the commencement of the call:

Click this link to register for the conference

1. Includes €24m of non-core revenues in each of 2019 and 2020

3. Pre-asset impairment of €20.3 million in H1 2020

4. At 25 February, all scheduled for delivery in 2021

5. Including core and non-core. Assumes restrictions on residential construction end no later than 5 April

All news from Business Results

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