Glenveagh Properties plc ("Glenveagh" or the "Group") is today issuing a trading update for the year ended 31 December 2024 ahead of the publication of its full-year results on Thursday, 13 March 2025.
2024 Performance Summary
Strategic Expansion of Group Landbank
The implementation of the National Planning Framework (“NPF”) has led to a limited supply of zoned serviced land suitable for viable own-door housing. While the proposed increase in the national annual unit ceiling from 33,000 to 50,500 in the draft revision of the NPF is a positive development, the duration of county development plan cycles and planning timelines means that limited marginal own-door units will be delivered on newly zoned sites before 2029.
This dynamic has necessitated proactive investment in land by the Group in sites with the capacity to deliver own-door housing today. The exit of the last remaining borrowers from NAMA, and landbank sales by non-traditional landholders, has allowed the Group to opportunistically acquire approximately 9,000 units across 14 sites principally for use in the Suburban segment. The total cost of these acquisitions is €285m with approximately €210m deployed in 2024 (with the balance to be deployed in 2025). These sites were purchased at an attractive cost of €31k per unit, site cost as a percentage of net development value (<10%) with strong embedded spot margins of approximately 21%, and an attractive ROCE profile. Approximately 70% of the investment and potential units are attributable to sites in Dublin. Four sites have suitable existing planning permissions and construction has already commenced on two of these. Additionally, the Group has identified the potential for at least 2,000 Partnership units on sites adjacent to these recent site acquisitions, 275 of which have been signed to date.
The Group’s controlled landbank is now approximately 20,000 units supporting the delivery of between 2,600 and 3,600 equivalent units per annum across our business segments through to 2029, without further land investment or additional Partnerships awards. Capital employed in land at year end is approximately €555 million5 representing a peak year-end investment level. Reductions in our landbank investment through unit delivery are expected to be complemented by site sales exceeding €100 million over two years as the Group further optimises its landbank.
Capital Allocation
The Group initiated a further €50m share buyback programme on 6 September 2024. As of 8 January 2025, approximately €33m has been completed. Given our operational and financial position and our confidence in continued cash generation and balance sheet strength of the business, the Group intends to amend the terms of the arrangement with J&E Davy so that the maximum aggregate consideration of the current programme is €65m. The Group expects to conclude the current programme on or around the date of the 2025 Annual General Meeting in May.
Reporting Segment Simplification
Due to the change in customer profile and state schemes embedded in the remaining Urban assets, the Group intends to simplify its segmental reporting under Homebuilding and Partnerships (formerly Suburban, Urban and Partnerships) in future reporting periods commencing with H1 2025 results.
CFO Transition
Conor Murtagh succeeded Michael Rice as Chief Financial Officer on 1 January 2025, as previously announced.
Outlook
With favourable market conditions, the Group is confident of continued revenue and profit growth in 2025, underpinned by a strong order book, required planning permissions in place, increased standardisation, and vertically integrated manufacturing operation.
With proven Partnerships experience, and ability to deliver at scale Glenveagh is strongly positioned to develop housing alongside the public sector. The Partnerships segment has the potential to deliver sustained growth and will account for a materially higher weighting of revenues from 2025.
The Group expects to deliver EPS of approximately 19.5 cent in 2025.
CEO Stephen Garvey commented:
“Our strong 2024 performance, with a notable 77% increase in new homes delivered to customers, reflects the value of our long-term investments in supply chain integration and public-private collaborations. Proactive decision-making, efficient cost management, and our focus on larger own-door housing sites have been key drivers and will underpin our continued success. The increase in gross margin to 21.2% in 2024 from 18.5% highlights our commitment to operational efficiency, innovation and cost management. Furthermore, the Group’s balance sheet strength and agile approach to capital allocation have meant we have been able to opportunistically invest in highly attractive Dublin-centric own-door sites that set the business up well for continued long-term success.
Through our carefully planned and structured Partnerships platform we have started to demonstrate how the public-private model can maximise collective experience and resources to deliver the homes the country needs at scale, while providing value for taxpayers. We remain excited about the growth potential for our Partnerships business.
More broadly, there remains a serious challenge to housing delivery without substantial additional capital (public and private), adequate zoned land, public sector resources and critical infrastructure to support new homes. The evidence from 2024 indicates that delivering the targeted 300,000 homes by 2030 requires a renewed impetus at all levels of the public and private sectors, and we look forward to continuing our collaboration to achieve this critical goal.”
Divisional Commentary
Suburban
The Suburban segment generated revenue of approximately €631m (2023: €470m), primarily from 1,650-unit sales (2023: 1,328) with an Average Selling Price (ASP) of approximately €365k (2023: €336k). The increase in ASP was driven largely by site and product mix, and is expected to normalise in 2025. Unit deliveries reflect the timing of land acquisitions and the balancing of output into 2025 as the business prioritised efficient unit delivery on sites of scale.
Suburban margin was approximately 22.2% in 2024, up from 20.2% in 2023, reflecting the benefits of the Group’s strategic focus on innovation and efficient unit delivery, augmented by land sales (+40 bps).
The Group finished the year with 703 Suburban units contracted or reserved (2023: 680). This strong orderbook, combined with existing units close to completion will facilitate a robust first half of 2025. Suburban unit deliveries in 2025 are expected to exceed 1,500 with recent land acquisitions primarily contributing units from 2026. Although unit deliveries are expected to be second half weighted, as is typical, existing units close to completion will mean that the split of deliveries between the first and second half is expected to be more balanced than was the case in 2024.
Urban
Urban revenue was approximately €118m (2023: €120m) and Urban gross margin was approximately 20.1% (2023: 12.8%). 2024 project completions included Cluain Mhuire, Citywest and Castleknock with 649 units completed in the period.
Additional forward fund transaction for 139 units (€52m) announced at the Group’s Barn Oaks site with an Approved Housing Body.
Following the request to join the Land Development Agency framework panel to accelerate the delivery of mixed tenure homes, a partnership with the agency to commence the activation of our Urban portfolio in Cork Docklands, via a forward fund transaction, remains subject to final legal and commercial agreement.
Partnerships
Partnerships revenue was approximately €120m in 2024 (2023: €17m) with Gross Margin of approximately 16.7% (2023: 12.9%). Construction progressed strongly at the Group’s first two Partnership sites.
Development started at a third site adjacent to Ballymastone, and a fourth agreement was secured adding approximately 451 equivalent units (€161m) to the Group’s pipeline.
ENDS