Good morning. This is Rafael Cruz from the Aedas Homes Investor Relations Department. On behalf of the company, I'd like to thank you for attending this call on our ninth-month update, which encompass the period from April to December 2023. This presentation has been published on both the regulators and the Aedas Homes website. Today's session will be covered by María José Leal, CEO--CFO, and Tamara Marañón, Director of Capital Markets. Afterwards, we will move to Q&A. We will start with questions from people phoning in, followed by questions sent via email or the webcast platform. For those of you phoning in, we recommend that you ask only one question at a time. Before we get started, let me remind you that this event is being recorded, and it will be available for playback on our website. I'd also invite you to review the document's legal disclaimer.
Now, I will hand things over to María José. María José, the floor is yours.
Thank you, Rafa. Thank you all for attending this nine-month market update. First of all, I would like to share with you the excellent evolution we have seen on sales, which are up by 9.6% in EUR versus the previous fiscal year. This implies revenues of EUR 681 million, and is a reflection of the robustness of our business. ASP stood at EUR 415,000, representing an increase of 7% versus the same period in 2022. This increase is a result of our focus on new investments in areas and projects implying a higher price, along with our capacity to optimize price increases. Regarding our customer profile, the weight of foreign buyers has remained high versus the historic average. Last, I would like to highlight the evolution of the absorption rate over the last quarter.
Although it is a bit early to state whether this is a changing trend that will remain, we view it as positive, as it remains within our target of matching up sales with the time required to develop a residential project. At the end of December, our order book stood at over EUR 1.5 billion, with a higher weight of build- to- sell sales, reflecting resilient demand for new build homes and lower appetite for build-to-rent projects in a context of higher interest rates. It is worth noting the increase of ASP of the overall order book, coming to EUR 380,000 per unit, which will enable us to meet our revenue targets over the coming years. Regarding cancellations, although we have a bigger order book, they have remained at the same level as last year, thus proving again, stability and robustness in the market.
Last, the distribution of the order book among our regional branches remains in line with the respective weights in our land bank. So we can state that overall demand seems to be strong across the Aedas Homes footprint. I will now move on to the operational status of these projects. As we have been outlining, now that we have reached our run rate deliveries, we have increased our focus on return on equity. We are very conscious of the importance of keeping our best-in-class margins and reducing our time to delivery, optimizing the use of our resources and equity. 80% of our active units are already on the market, and 44% is already under construction. This level of units under construction ensures sufficient coverage ratios to meet our targets for the coming two years.
It is worth noting that we also hold building permits for over 1,300 units, which are slated to break ground over the coming months. As expected, at this time of our fiscal year, we have already almost 2,000 units completed, which, in addition to the over 1,100 units already delivered, gives us peace of mind on meeting our target revenues. As these units are already completed and the vast majority are sold, it is now a matter of completing the administrative steps to deliver them over the coming weeks. Let's now take a closer look at our coverage ratios to reinforce the numbers we have just seen. Regarding our targets over the coming years, our expectation is to generate revenues of EUR 1 billion on an annual basis.
In this regard, and as we have shared with you on the H1 results presentation back in November, most of our efforts have concentrated on improving our fiscal year 2024 sales coverage. The 12% improvement shown over this period provides reassurance around the good performance of our sales and means that we should be close to the same ratios disclosed in previous years by the end of the fiscal year. Regarding construction coverage for fiscal year 2025, and as I mentioned earlier in the presentation, we already hold building permits for over 1,300 units. Therefore, we expect to be able to break ground on these projects in the coming months. Let's now cover our investment activity, where we can also see the progress on our fiscal year 2023 budget.
First of all, I remind you that as part of our strategy to improve our ROE, we have aimed at improving our land purchase process and our asset rotation. First of all, we encourage our regional branches and investment team to option land opportunities whenever possible and defer land payments, linking these cash outflows with certain development milestones. This has enabled us to buy land while optimizing the use of our equity. Second, as we revisit our land bank status on a continuous basis, we may decide to rotate positions and sell some of these land plots, which might not be launched within a five-year timeframe. The numbers we are disclosing today reflect these pillars of our investment approach. We have executed all options coming from fiscal year 2022, and at least one third of them are already on the market.
We have executed land purchases on 497 units, and have optioned land for 814 new opportunities. All these investments meet our minimum 20% net developer margin threshold, and most are concentrated in our Madrid and East regions. Regarding land sales, we have sold land for over EUR 55 million at a blended margin of 17%. I would like to comment now on our co-investment agreement, which we just closed last week. Aedas has entered into a shareholders agreement with King Street to jointly pursue an investment strategy consisting of developing homes for sale to individuals in Spain, targeting returns above 15% IRR. The target capital commitment totals EUR 270 million.
EUR 150 million of this amount will be invested in seven midstream build-to-sell developments currently being developed by Aedas, and located in dynamic markets where Aedas has either a significant presence or a strong track record. The remaining EUR 120 million target will be allocated to investments in ready-to-build land for residential developments in Spain within a maximum period of 18 months, and following a set of criteria already pre-agreed in the joint venture documentation. Aedas will take a minority stake in the joint venture, which will vary depending on the achievement of certain precedent conditions. As a result, by the end of our fiscal year, we will generate a net positive cash flow equal to around 55% of the transaction price, with additional disbursements as specific milestones are achieved.
Those proceeds, together with any positive result generated by the company, will be used to continue to make significant investments to replenish our land bank, but also to continue to offer to our shareholders an attractive remuneration, while maintaining a prudent leverage profile and sound capital structure. Finally, we would like to highlight that the disposal of these seven projects will reduce the deliveries target in fiscal year 2025 and 2026, thus reducing the estimated target revenues and net margin. However, we will earn fees in exchange for providing end-to-end development services and dividends from our stake in the JV, coming from the net result generated by the seven projects and the new investments to be executed through the JV. Now, I will let Tamara go through an update on financial results. Tamara?
Thank you, María José. As we've already stated, the total number of deliveries in the nine-month period came to 1,147 units, and we are making good progress on delivering the outstanding 1,800 units scheduled by the end of March. The ASP of these delivered units reflects the product mix in the nine-month period. On one hand, we deliver a BTR project at an ASP of EUR 153,000 per unit, and on the other hand, we delivered 981 BTS units at an ASP of EUR 368,000 per unit. All in all, given the increase in the number of units delivered, in particular in the BTS product line, total revenues from our development division reached EUR 387 million in the nine-month period, up 14% versus last year.
On top of the revenues from the core business and as part of the land rotation strategy, the company generated EUR 55 million in revenue from the disposal of land for 776 units. We are also expecting a further EUR 3 million from additional land disposals to be recorded in the fourth quarter on the back of two deals, which were pending closing as of December 2023. Finally, the revenues from our Real Estate Services division came to EUR 2.3 million, as we have only managed one project in a co-investment vehicle and the development in Plan Vive.
Please note that this revenue line is expected to grow in the coming years, not only because of the recently announced joint venture of EUR 270 million, but also given our focus and track record, which may potentially result in additional new collaboration agreements. Now, I'd like to touch on operating margins. First of all, as we already explained back in November, during the half year results presentation, the deterioration in the gross development margin was due to, one, disruptions in the supply chain between September 2021 and April 2022, which resulted in unprecedented increases in construction costs. Two, two interest rate hikes that started in July 2022, which impacted the capitalized financial expenses linked to the drawdown of construction financing. As such, the BTS gross development margin stands at 25% as of December 2023.
On the other side, the blended gross margin was impacted by the 17% gross margin attributed to the land disposals executed over the period, which accounted for 12% of total revenues and 9% of total gross margin, and by the delivery of a 166-unit BTR project. Regarding overheads, as our platform has stabilized, and excluding the long-term incentive plan accruals, the overhead costs registered during Q3 2023 remain at levels similar to previous quarters, and EBITDA margin is still at levels similar to previous years. Finally, regarding financial income expenses, although almost half of our debt is fixed rate, the impact of the increase of underlying interest rates over working capital lines and outstanding debt on completed product, have implied an increase of EUR 2 million of financial expenses. Over this period, we have delivered a return on equity of 12%.
Let's move on to the balance sheet. As we've covered earlier today, our inventories balance reflects our selective investment approach, our strategic approach to land disposals, and our strong visibility and product completions for the next two years. As a result, the land on balance decreased by EUR 36 million, and work in progress increased by 42%, reflecting the company's significant progress on the construction front, with nearly 5,000 units currently under construction. Now, I'll touch on our debt and liquidity position. As you can see on this slide, the respective evolution reflects the increase in inventories, as well as shareholder remuneration during the first nine months of our fiscal year. As we pointed out before, our increased activity in construction works has translated into a significant increase on our work-in-progress inventory volume.
This on-track operational progress, together with the number of deliveries already accumulated at this time of the year, has resulted in a significant growth of our exposure to development financing, lower weight of our fixed rate debt, and higher net leverage levels. However, by the end of this fiscal year, fixed rate debt will once again represent more than 60% of total gross financial debt after developer loans are paid down, with revenues from our expected Q2 to Q4 deliveries, and leverage ratios will revert again to levels below 20%. In terms of financing costs, at the end of December 2023, the company's average borrowing costs on draw borrowings was 5.2%, reflecting the increase in interest rates and the higher volume drawn on development financing, around 75 basis points increase versus March 2023, and a 30 basis points increase versus September 2023.
Finally, despite the decline in available cash shown on the previous slide, comparing to March 2023, we do still have strong liquidity position on the back of our treasury management strategy. As of December 2023, we had EUR 224 million in available lines to complete existing projects, out of which EUR 65 million was related to the undrawn liquidity facility, and this solid liquidity position will improve as we progress to year-end. Now, I will let María José share her conclusion.
Thank you, Tamara. To wrap things up, I'd like to leave you with four key messages. First, despite the context of continued uncertainty, we are seeing a certain dynamism in sales levels. Total sales revenue is up 10%, and our current order book, valued at EUR 1.52 billion, gives us solid visibility over revenues in the coming years. Second, operational progress continues to be strong, thanks to the capacity of the Aedas platform. Our current volumes, 80% of our active units on the market and 5,000 units under construction, put us in a privileged position to achieve our goal of EUR 1 billion in annual revenues. Third, we continue to invest selectively and take a hands-on approach to land bank rotation.
Finally, all this is underpinned by a very stable financial profile, with debt levels that remain in line with delivery volumes and construction progress, while delivering a very interesting return on to our shareholders. We enter the last quarter of our fiscal year in a solid financial position and with strong completion levels. As of today, we are on track to achieve our year-end goal of generating a record EUR 1 billion in revenue. I would like to thank you, and now we can open it up to Q&A. Operator?
Thank you. Ladies and gentlemen, we will now begin the Q&A session. If you'd like to ask a question, please press star five on your telephone keypad. If you change your mind, please press star five again. We kindly request that you limit your questions to one per channel. Please ensure that your devices are muted locally before proceeding with your question. Our first question comes from the line of Ignacio Dominguez from JB Capital. Please go ahead.
... Hello. Thank you for the presentation and taking our questions. I have 2 questions, if I may. I will do 1, 1 at a time. My first question is on shareholder remuneration. Do you plan to continue with your current 80% payout dividend policy?
I will take that question, Ignacio, if I may. This is María José. Good morning. You know that our dividend policy establishes a minimum 50% payout, which can be complemented as long as our Net Loan-to-Value stands below 20%, okay? So it's never been an 80% payout. In terms of our policy, yes, we haven't changed it.
Margins. Do you expect a slight recovery in gross margins in 2024 as construction costs continue to decelerate, or do you expect this to stay around 24%-25% in the housing development business?
Hi, Ignacio. I will take this one. In terms of gross margins for fiscal year 2024, we envisage that we will still see similar levels as the one of fiscal year 2023 because of the reasons we have pointed out in the presentation, meaning the increases in interest rates, as well as the increases in construction costs, given the disruptions in the supply chain.
Okay. Thank you, Tamara.
The next question comes from the line of Gerardo Ibáñez Ferrero from ABM. Please go ahead.
Hello, good morning. Yeah, I have a couple questions. Maybe the first one, could you please order in line of priority or preference where the capital allocation from co-investment will be used? I think, yeah, it's somewhere in the presentation. I don't know if there is any priorities there.
Good morning, Gerardo. Yes, I mean, I think this morning we have shared with you very strong operational performance over the course of fiscal year 2023 so far. It's very early to anticipate what's going to be the outcome of this quarter, although recent data seems to be as supportive as it was. In terms of cash flow generation, this performance has been further improved by the land sales achieved over the period, and as well by the new JV structures to be put in place before the end of this fiscal year.
Taking all these factors into consideration, we will continue to maintain a land bank size that covers our needs for the coming 4-5 years. At the same time, you know that we have a very ambitious shareholder remuneration policy that we expect to maintain.
Okay? In any case, we are always cautious on our leverage profile, and we would like to keep it at the same level. So taking all this into consideration, I think you might come to, to a result of what should be the, the final dividend to be paid out. In any case, you know that we always pay an interim dividend by, by the end of the fiscal year, and, and we have a board meeting scheduled by, by mid-March, whereby the board is supposed to be proposing the, the interim dividend.
Okay, thank you. Maybe also I have two more questions. So maybe could you please provide some indication on the build-to-rent gross margin delivered? I don't think that it was provided on the presentation, and maybe if you can also provide some color on the margins for the land sales, that would be also quite appreciated.
Hi, Gerardo. I will take the one on the Build-to-Rent margin of the project that we delivered this quarter. It is true that the margin of the Build-to-Rent that we delivered this quarter is below of the historical average gross margin in the Build-to-Rent product, but we expect to deliver around 220 units over the course of the fourth quarter of the year. So the blended gross margin for year-end will stand at 14%, approximately.
Yes, and on land sales, I would like to remind you, first of all, what's always been our mindset behind the land rotation strategy. You know that we have a clear focus on return on equity. In order not to deteriorate our return on equity, we are conscious of what should be the appropriate level of our land bank, and we revisit on a periodic basis what's going to be the estimated timeline for the projects or for the land plots that we have on balance sheet.
In this case, this year, we have decided to sell off land that was not due to be delivered before 2029 or so, and some of those outstanding land plots from prior to the IPO had a value that was not according to current market standards, in most cases, because they were not as suitable for the type of projects we develop. Therefore, the margin has been slightly lower than it usually is. So you have seen there a mixture of projects for which we have accepted to sell at breakeven and others whereby the margin has been significant.
Great, thank you very much.
... Our next question comes from the line of Fernando Abril from Alantra. Please go ahead.
Hello. Thank you very much for the presentations. So first question is with regards pre-sales. I would like to know whether there is a changing trend or not. So basically, how things are going in Q4?
Hi, Fernando. It is true that the absorption rate of the last quarter was extremely well, and also we have started the year with absorption rates above 4%, but we still think that it's very early to confirm if there is a change in the trend of demand. So the reality is that January has performed pretty well. February, up to now, also is performing pretty well, but I mean, we will still need more data to confirm if this upward trend will remain.
Okay. Thank you, Tamara. Second question is with the JV announcement. So I don't know if you've sold ongoing projects probably in earlier stages. My question is what do you expect for the future? Is new JVs could come with ongoing projects, or pure land sales, or future land purchases?
Thank you, Fernando. I will take the question if that's okay. I mean, we believe that this is the... And, we've been saying this over several calls. We would like to keep on our growth strategy, and for that, we will depend, or we will leverage on third party's equity. Our balance sheet is well established as it is, and, you know, we're happy with our share of land bank, debt structure, capital structure, and shareholder remuneration.
Okay, so, we are not ruling out new JVs, just like the one we have just closed, and we wouldn't rule out either offering existing land assets on our balance sheet, as long as it allows us to cement a long-term partnership for future co-investment activity in new assets.
Our main focus, in any case, as I've stated before, is forming partnerships with third parties who can help us to further scale our operating activity and to enter into new living asset classes as well, which is something that we are beginning to explore.
Mm-hmm. Okay. And last question is, with regards on net debt. I don't know if you put everything together, you know, the back-end debt, deliveries in Q4, as well as the proceeds to be received from the JV. So, what are your expectations, by year-end in terms of net debt?
You know that by year-end, there is always a significant deleveraging process simply because of the settlement of the construction loans. So you can expect construction loans to stay in levels close to EUR 130 million or so. That's gross debt.
You know, we have an outstanding bond, and we also have commercial paper program or working capital loans, which usually come to something between EUR 40 million to EUR 50 million. Regarding outstanding cash and balance sheet, that's going to be dependent on the final dividend payment, interim dividend payment to be made out in March.
Again, given the good performance of this fiscal year, land sales and the cash inflows from the JV agreements, as well balanced with our 20% Net Loan-to-Value limit that we've always made clear we want to stick to, you know, can come to some level of cash estimate that will give you the net debt value. In any case, again, our 20% is something that we would like to stick to.
Sorry to ask again about the dividend. So I don't know, but last year you paid out 90% of net profit. So I think you have a cap at 100%. I don't know if the JV sale is going to add some net profit in Q4, so there is room to increase dividend versus last year?
Again, our dividend policy is not set up just on payout. There is a minimum payout of 50%, which we, as you mentioned, we've always exceeded. It's more, it's more a function of, of what's our leverage level, because we want to keep a well-balanced capital structure. In that regard, considering all these factors, you can expect a significantly higher dividend than what we distributed last year.
But again, it's a board decision, and, and we cannot share more than this, until we propose the final dividend to the board, and they, they accept this proposal and make it public, which we are expecting to do so, by mid-March.
Okay. Okay, thank you very much.
Our next question comes from the line of Rosalind Dalton from ICG. Please go ahead.
Hello, thanks ever so much for hosting this call. I'm so sorry, but do you think you could just run through the JV again for me in terms of the cash needs? Yeah, if you could just outline it again. Sorry, I think I got, I missed some of the explanations.
... Hi, Rosalind. I'll take the question, and if you need further help on the modeling, the investor team can help you on that. Yes, the JV agreement, it implies two buckets. There is one bucket, which we call pipeline, which is future projects where we will be co-investing from now onwards, and therefore, the cash inflow there will be none. It's basically that there will be less cash outflow from Aedas Homes. And for the coming years, we will be receiving management fees from this JV, and as well, dividends once the projects are delivered. But you should not see any cash inflows, at least I would say, for the next five to six months.
Looking into the other bucket, which is what we call the seed portfolio, and that's something we use to attract the future pipeline investment. There will be an initial sale of assets to be executed between now and the end of the fiscal year. It's going to be 682 units, and you can expect us to recover some of the cost of land there, and very little amount of incurred cost because the projects are mostly in an incipient stages.
Okay? Going forward, we will be receiving management fees, and as well, dividends, in the fiscal years 2025 and 2026. But again, if you need a further help on the modeling, the team can help you there. Thank you.
I think I might need a bit more detail just to get my head around actually the, the actual level of management fees and dividends, but I'll reach out to you separately. And then, can I just ask, with regards to your-- obviously, the, the bonds have a 2026 maturity date, and I appreciate that we still have a lot of lead time on those. But, I'm just wondering if you're considering any refinancing options at the moment, or as and when, you know, when will you consider them, I suppose?
As you point out, we still have two and a half years from now to maturity. We are following the market closely, and there's been significant improvement in market conditions. In fact, well, I mean, you're closer to the market than I am, so I don't think we need to go too much into detail into there. We still have the premium to pay if we decide to refinance it now. So we will just follow up on market conditions and decide when it's best to refinance it, but we still have two and a half years from now.
Okay, that's great. Thank you. That's welcome.
Our next question comes from the line of Nawar Saghir from Morgan Stanley. Please go ahead.
Hi, this is Noor. One question from my side. Could you talk a bit about more on what you're seeing on the demand side? I know, as the absorption rates look quite promising, but any other kind of leading indicators that you're seeing that could give us an idea of how the demand is looking?
Hi. So, as mentioned before, we see a strong demand, given our absorption rate is above 4% in the last quarter, as well as the beginning of the year. But it is still very early to confirm if this, solvent or robust demand will continue over the years. So we are monitoring the market every single day. And in terms of, foreign demand and domestic demand, we are still seeing a very strong demand from international clients and from a very diversified, nationalities base. So we are not, we are not dependent on a single one, but we are very well diversified across all European jurisdictions.
And if I may ask, like, do you have any idea of what's driven this higher absorption rates? Is that affordability is improving in Spain? Like, what's driving this jump?
Noor, I mean, it's a bit early to state many facts. We believe it's a combination of-
Mm-hmm
... several things.
Yeah.
One, because we see that in the Madrid region or in the east region, we increased prices significantly in 2022.
Yeah.
That deteriorated the absorption rates, but we did so in order to preserve margins. It seems like those price levels have already been absorbed. That's the first point.
Mm-hmm.
Second, you know that there's been an expectation of a stabilization of interest rates and even a decrease. That's provided more confidence to the demand, to the final buyers.
Mm-hmm.
I'm not sure how close you are to the Spanish macro, but overall, macro is quite strong. Commercial banks on the mortgage lending side, as we've always mentioned, and that's in our corporate presentation, are still providing loans and have provided mortgage loans at very interesting rates over all this period.
So we believe all these factors have reassured demand, their confidence. Tamara has covered foreign demand, which has been very, very strong over the last really year, and that's what's explaining the improvement in demand. We did some marketing campaign because we had some completed product in some specific projects. We did some marketing campaign, which was relatively cheap to do so, no more than EUR 3,000-EUR 5,000 per unit, and that's given a really good outcome.
It was already completed product, therefore, it's generated a significant cash inflow over this quarter.
... Interesting. And María, just one last question on my side. On the JV, I know you were answering. If I can just understand in terms of cash inflow and cash outflow, overall for the JV, am I right in thinking that you're gonna put in, like, EUR 150 million of an equity commitment, so that's EUR 150 million cash going out? And then you were talking about net positive cash flow, 55% of this investment coming back.
Really, the 150 has already gone out, Noor, because we-
Yeah
For the seed portfolio, we already have the land on our balance sheet. So therefore, that's our estimate of cash inflow. Okay? For the pipeline, there is no cash outflow yet, and the cash will go out as we buy the new land.
All right. Okay. Thank you.
Our next question comes from the line of Ignacio Romero from Banco Sabadell. Please go ahead. Ignacio Romero, your line is open. Please go ahead. There is no sound coming from this line, so I will end the question. And I hand back the call back to you. Thank you.
It looks like we don't have any more questions from the telephone audience, so we can now take questions coming from the webcast platform. First question comes from Andrea Oszner at Expert Research. I see in your presentation that you mentioned EUR 65 million undrawn under revolving credit facilities. Has the size of your RCF been increased? I remember it was EUR 55 million. Also, could you provide us with some color on how you see demand and margins in 2024? Thanks.
Yes, I will cover the question on the RCF. You're right that we had a EUR 55 million RCF, but we also closed an overdraft facility over last summer in August, and that's what explains the increase to EUR 65 million. Tamara, would you cover demand...? Okay, sorry, the second question has already been covered.
Mm-hmm.
Okay. So next question comes from Javier Beldarrain at Berenberg. Can you be more specific about the financial implications of the delivery of units for the JV for 2024 and 2025 results?
Hi, Javier. Well, the delivery of the 682 units of the JV are expected to be delivered between fiscal year 2025 and fiscal year 2026. So we do not expect any impact on any delivery for our next year, fiscal year 2024. And in terms of the financial impact, so there will be, as it is, sell to a new company, where we'll hold a minority stake.
Obviously, there will be a reduction in our revenues related to these 680 units, but also this decrease in revenues will be partially offset by the management fees that will be generated in exchange of the end-to-end project management services to be provided to the different development projects, and also by the dividends to be obtained from our minority stake at the JV.
Next question comes from Jeff Cotterill at Barings. How do you expect outlook to evolve over the next 12-18 months?
I'll take the question. Thank you, Jeff. I mean, we, we don't have a crystal ball, so it, it's difficult to, to forecast on a 12-18-month period. I have to say that the current macro outlook for Spain seems to be relatively positive, and that we have seen strong demand, resilience of demand, over last year when, when the prospects, especially on the interest rate front, were, were less attractive.
Okay, so we had already provided certain guidance as to what's our run rate level, which should be a roughly EUR 1 billion revenues yearly, and that's what you can expect, if nothing else, deteriorates on the, on the coming 1-1.5 year.
Okay, last two questions from Sonia at Mirabaud. Two aspects of the new co-investment: What could be the impact of future delivery level from the recent JV signed? We will not expect a level of 3,000 units a year to be kept. In terms of management fees, what amount could be expected to register under the service revenues line? Thank you very much. Nice day.
Yes, Sonia, regarding the number of units to be delivered, you know that we have committed, or more than committed, our expectation or our ambition is to deliver roughly EUR 1 billion per year. Given that we have increased our average selling price, that implies that we can deliver less units than initially anticipated when our average selling price was lower. So to the answer to that is that we don't want to fix or to establish a specific number of units to be delivered. We are more focused on volume of revenues.
In terms of the management fees, so what we have agreed with our partner is to earn a standard market fee. So mostly of them are directly linked to the revenues generated by the JV, but also for the acquisition fee that also we are entitled to receive for the new pipeline, that will be directly related to the ready-to-build cost of the new land to be bought.
This concludes today's presentation. If you have any follow-up questions, the investor relations team will be delighted to take them. Thank you very much for joining us, and I remind you that AEDAS Homes will be publishing full-year results and hosting a webcast on Thursday, May 30th, 2024. Thank you, and have a nice day.