Hi, good afternoon, everyone. My name is José Cravo, and I'm the head of investor relations at Neinor Homes. Today, we are going to review results from fiscal year 2021, and as usual, we are here with Borja Garcia-Egotxeaga Vergara, our CEO, and Jordi Argemí, our deputy CEO and CFO. We will start with key messages and figures from the year 2021. Then we'll move to section two and three to review the operational performance of the development and rental businesses, as well as financial figures. In section four, we will unveil guidance and outlook for the year 2022, and afterwards, we will finish with a Q&A session. Now I'll hand the presentation to Borja.
Thank you, José, and thanks everyone for joining. As José said, we are here today to present the results corresponding to the year 2021. I would like to start with one key message. The set of financial results and company activity that we are going to see here today are exceptional and consolidate Neinor in the top of the Spanish developers. Before we start, I want to take a minute to remember what we said to you three years ago when this team was taking the lead of the company. We promised that we would work hard to fulfill and exceed company targets and your expectations, and we gave you a guidance for 2019, 2020, and 2021. Today, three years later, we can say proudly that we have not only met but exceeded targets for deliveries, EBITDAs, and margins.
On top of the business plan, we have been the first movers in consolidation, and we have created the only rental platform among all the Spanish developers. Today, this platform is a reality and will create a lot of value for shareholders in the years to come. We have finished this three-year period with a EUR 300 million cash position, a prudent leverage, and own a quality land bank of nearly 17,000 units. Very important, not only Neinor is in great shape today, but fundamentals of the residential sector have never been stronger in Spain. After this brief introduction, let's move to page five, so I can give you the main highlights from the fiscal year 2021. Here you have a summary of our performance.
Starting with deliveries, we have consolidated our leadership position with more than 3,000 units, growing 90% year over year. This is an absolute record that shows very well the capacity of this company. Our revenues stood above EUR 900 million and EBITDA reached EUR 158 million. On the accumulated basis, we have exceeded EBITDA guidance for the period 2019-2021 by 16%. This represents EUR 50 million more than what we had estimated. In operational terms, we had an excellent year, too. We have pre-sold more than 2,600 units. This is 11% above our annual target. With regards to land acquisitions, 2021 was a vintage year. In an environment of good opportunities, we invested EUR 650 million, which is roughly three times our normal target.
Let me also highlight what we have done on the rental business, which is remarkable. In 2020, we told you that we had a target of reaching 5,000 units. Today, this is becoming a reality because we already own these assets, and most of them have financing in place. On the leverage side, in spite of the cumulative investments in build- to- sell, build- to- rent, and Servicing/Parks of EUR 750 million, we have finished the year with a loan-to-value below 20%, a record EUR 300 million cash position, and no refinancing risk until 2026. Remember that we always said that the impact of Quabit on EBITDA was small, but significant in terms of cash flows. In terms of NAV, we have seen a strong uplift of 15% that was driven by the accretive merger with Quabit and Neinor's build- to- rent strategy.
The cherry on top of the cake, Neinor has been recognized by Sustainalytics with the best ESG rate out of all the developers worldwide. This shows that we have been able to meet all of our financial and operational targets in a responsible manner. Now, please, let's move to page number six. Here, for your reference, you have the summary of the key operational and financial metrics that we shall review in section two and three of this presentation. Please follow me to section two, where we will see the operational review. In slide number eight, here we start with the development business. On sales, even though we have increased prices by an average of 3%, we continue to sell according to our internal estimations.
In December, we already had 80% of the 2022 target deliveries pre-sold. This is a very solid market for new houses in Spain. In the upcoming months, we will keep adding HPA to offset cost inflation and to protect margins as we have done in previous years. My regions, Madrid, Málaga, and Corredor del Henares are the top three performing ones. Please move now to slide number nine. As I said before, 2021 was our vintage year for buying land. We have fully replenished our land bank with a mix between strategic deals and the opportunistic merger with Quabit. We continue to see a significant consolidation opportunity in the sector, but as always, we will remain very disciplined in our decisions. Please follow me now to the next slide, where we review the operational performance of the rental business.
Here you can see the huge progress we have made during 2021. We have finished the year with 542 units built, 1,200 under construction, and a further 800 already launched. We expect this to be delivered by 2024, and to generate a stabilized GRI of EUR 30 million. Let me remind you that until now, we have raised EUR 220 million to fund construction purpose for build-to-rent. Furthermore, we are already launching the first phase of HMB in Barcelona, whose first deliveries will take place in 2024. Already the whole project is fully funded. On the left side of slide 11, you can see the evolution of our GRI and occupancy, including AEDAS Homes from December onwards.
Specifically, on the Sardes portfolio, we have completed our turnaround strategy in just one year, increasing at the same time occupancy levels and rents. Today, the portfolio is 95% occupied. On the other hand, AEDAS Homes in Málaga has a 70% occupancy level in just three months, and we are already increasing rents. Now, next slide, 13, we have the financial review. Most of the things and the items that you can see in this slide, I have already gone through. You have much more detailed information about financials in the appendix, and later on, Jordi and me will be happy to answer your questions in the Q&A session. Now let's go to the last slide of this presentation, and let me finish with four messages.
The first one is that with regards to the financial guidance, we expect an excellent year 2022 in line with 2021, with a target of reaching again EUR 150 million EBITDA. To achieve this, just highlight that we have a great visibility. Over 80% of the target deliveries are already presold, and all the construction sites are progressing well. Second, we have full visibility and low-risk business for the next three years with our replenished land bank. The third message is for build-to-rent. Over the next 10 years, Spain will need more than 1 million rental homes. Today I will finish by repeating what I said just two years ago. Build-to-rent is the most attractive investment opportunity of the Spanish residential sector, and Neinor is very well positioned to deliver on this secular growth opportunity.
Last but not least, like always, shareholders profitability and dividend distribution is one of our main priorities. This year, on shareholder remuneration, we will pay EUR 100 million dividend. Of this, EUR 50 million belong to the fiscal year 2021 and will be paid in April. Thanks to our cash position of EUR 300 million and our objective to be as equity efficient as possible, the company has approved to anticipate another EUR 50 million corresponding to year 2022 results that will be paid in July. Thank you very much for your time, and now let's move to the Q&A session.
Ladies and gentlemen, we now begin the question and answer session. If you wish to ask a question, please press star one on your telephone. Please star one if you wish to ask a question. There are no conference call questions at the moment. We have one question from Álvaro Soriano from BNP. Please go ahead.
Hello, guys. Thank you for the presentation. A few questions on my side. On the dividend, given the current stock price and seeing a lot of value to come in the coming years, can you explain or can you elaborate a little bit on whether distributing cash instead of doing other actions like share buyback? That would be the first one. In terms of what to expect for 2022 in terms of acquisitions and disposals, if you could give a little bit of color on what are your targets, especially after the unsuccessful transaction that the market was expecting this year. It would also be great. Thank you.
Good morning, Álvaro. I am here with Jordi Argemí and with Mario Lapiedra. I'm going to give now the turn to Jordi to start with the question about benefits.
Hello, good morning. Yes, you are right. Obviously, share buyback is very, I would say even sexy now, given our discount over net asset value. That's true. You know that we have always done share buybacks. It's true also that we committed with the markets to give a dividend, and this is what we are doing. As of today, we are not increasing the dividend. What we are doing is basically commit and deliver what we said now in the past, and just accelerating because we delivered more free cash flow than expected through COVID deliveries. As a result, we anticipate that. We are not changing. In parallel, we will see during the year if it makes sense to put on the table a share buyback.
It's not in the business plan. It's not planned, but we always consider this kind of stuff.
Good. I take then the question regarding the investment strategy. First, I would mention that, after the exceptional year that we closed in 2021 with more than EUR 600 million and the 10,000 units replenished, the short, mid, and long term, we start with a very solid land bank, in 2022. That allows us to even have a more disciplined and opportunistic strategy for the year. We see opportunities, but as we always said, we will only do what is accretive for our shareholders and the target returns. In general terms, we are very comfortable for the 2022 investment year.
Okay, thank you. We could assume another like between EUR 100 million and EUR 200 million of land bank acquisition, if I'm correct, for this year?
Yes, we will keep our disciplined strategy. We don't need to replenish the land bank in the short and medium term. We will be adapting our investment strategy to the opportunities.
Okay, thank you. On slide eight, regarding sales, it is a nice chart. Could you elaborate a little bit on how the market is right now, I mean, looking for the next year? And also if the current sale speed is consistent with like 600 units per quarter, or we are above those numbers or below?
Yes, no, the current market is strong both in volume and in terms of HPA. As Borja was mentioning before, we are adapting our sales curve to the targets of deliveries and with it being a consequence of the strong HPA environment. What we are doing is starting 2022 with an 80% coverage of 2022 deliveries, close to a 40% coverage of 2023, and close to a 5% of 2024. Our sales curve shows a target of ending the year with 65%-70% coverage for 2023 and close to 30%-35% coverage for 2024. We will stick to the plan because in that environment, it's not good to sell more than needed.
Okay, thank you.
Thank you for your question. There are no further question at the moment.
Okay. We'll address the questions coming from the webcast platform. First question is on the supply-demand environment on the sector, how we see the main risks coming in the coming years.
Yeah. Well, following with the answer of the previous question, we see very strong fundamentals. We still see very low supply coming to the market in the next years and a strong demand that it's allowing the new product to have a very good and sustainable affordability ratios because the demand that is getting access to the new or the few new units it's in the high level of the demand. In general terms, our forecast is very positive.
We'll continue with the webcast. The next question is with regards to the interest rate increases and the potential impact on negative rental returns. How do we look at this?
Yeah, no, the same. I mean, the HPA, we really see that is offsetting the inflation regarding the cost increase on the construction. As I was saying, the affordability that in some locations and in some markets, maybe it's been a bit tougher. In our segment for our product, new homes in our locations, it's been stable. The market is in the region of the seven times price per earning. In our portfolio, we are between five and seven, and we believe that as the supply is being very low, the best demand is the one that could be acquiring our homes. We feel comfortable also with that.
Continuing with the webcast, two questions that perhaps are related. The first one, if we could expect an acceleration on the run rate of the property development business. Okay. The second question, I understand that you will distribute the full dividend of full year 2022 of EUR 50 million and why not using this capital to accelerate the development business of the company by increasing the run rate targets if the Spanish market is booming.
Okay. Regarding this last question, I mean, I said at the beginning, we committed with the capital markets with the dividend, and it's now the moment, once we have reached the run rate too, to remunerate our shareholders. It's true that we could reinvest that and increase our run rates long-term, for sure, yes, but makes sense if we have such a discount on our net asset value. I don't know. Honestly speaking, whatever we reinvest to increase our run rates, and we don't have the confidence at the share price, I really believe that makes no sense. Again, we need to start remunerating and hand to the shareholders as we are doing right now. The first question was, José, can you remind me?
Me? Between the run rate.
No, run rate is what I have answered. I don't know.
Run rate, yes, and dividends. Why not use the dividends if we'll use the dividends as a decision of our board?
I guess I have already answered that.
The next question, what is the build cost inflation running at for current and new projects? If you could split materials and labor on what we are seeing.
Well, on cost inflation, during the last five, six months, we are seeing a cost inflation in our constructions, our developments between 8%-9% as an average. This is more or less taking our references from the last dozen developments that we have been launching. Regarding how we see this cost increase or which are the reasons of this cost increase, basically all of it is coming because of materials. You know, that supply and problems after the COVID had conducted materials to increase the prices. So the cost of material, the cost increase for materials, more or less it's around 23% in the last six months.
Considering the percentage of importance that this has in the total cost of the construction, this is making, as I have said, a final cost increase of between 8% and 9%. Really the labor cost or the employment, or the cost increase that comes from the workers is not increasing or it has increased low. I would say that less than 2%. This is what we expect that we keep being during the next months of this year. We think that we'll close the year with a cost increase of around 8%-9%.
As you know, we will see because we are assisting through to this year with still a lot of uncertainty, but this is what the market is considering today.
Next question, with regard to prices and the EBITDA margins on the coming years and take into consideration the impact of Quabit.
In terms of ASP, once we acquired or sourced Quabit, we said that the ASP should be ranging from EUR 180,000 to EUR 300,000. What is true is that we are increasing HPA, as Mario was saying before. As a result, we believe that in the business plan, we should be now between EUR 300,000 and EUR 320,000-EUR 330,000 per unit. We are going to increase in that sense, you know, the ASP. Regarding margins, it shouldn't change because when we underwrote Quabit, the assumptions behind that acquisition was to keep the 24% gross margin. With the purchase price allocation that we did with the absorption of Quabit, we shouldn't change the margins.
All in all, and in absolute terms, we have always said that EUR 150 million EBITDA plus, we keep that.
Another question with regards to M&A, what we are seeing in the market.
Well, we have always said in the last three years that M&A or consolidation, better said, you know, consolidation would happen because there are no natural shareholders in the market. You know, that we acquired Quabit. It's also public, and we said that we were in negotiations with Vía Célere, we stopped them. It's true that we didn't reach an agreement in the conditions that we wanted. As we said in December, we want a deal to be accretive for our shareholders. If we don't find an accretive deal, we will not do it. This is what happened with Vía Célere. Let's see in the next months if we have opportunities, but we will be very disciplined if we find something to jump.
Okay. Operator, you may now go back to the phone questions.
The question is from Ignacio Romero from Sabadell.
No. Yes, hello. My question has already been answered. No questions on my side. Thank you.
We have a question from Alvaro Soriano from BNP.
Yeah. I'm gonna take the opportunity to ask more because this is interesting. On your rental platform and given the 15% like-for-like net NAV growth that you reported, how the prices are reflecting the value of the units that are now under the build- to- rent pipeline that were before under build- to- sell? That would be interesting. Do you have any target in terms of GRI for 2022 to try to make more accurate the model? On the Valencia development that should be delivered in 2022, I guess Q3, Q4, how the construction process is going. Thank you.
I will start by with the last question about construction costs in Valencia. Well, so far, we don't have any negative news from this site. The constructions are progressing well. Basically, you know that this is a very big complex, the Sky Homes. This is four towers with more than 400 units. Basically, all these buildings have been already contracted, and the subcontractors, all the contracts were signed up a long time ago. Basically, all the materials are already on the site, you know. There's no delivery problems or there's no supply problems, and there is no big extra cost that could affect this construction.
The sites that have been more impacted by this cost increase are the ones that have been contracted during the last six months, I would say. We are working more with those sites that we are just starting constructions in order to control prices more than in the old one, like this Sky Homes that was contracted three years and a half ago.
I take your first two questions. The valuation for the delta, let's say with build to sell and build to rent, it's almost neutral what we have recorded in our accounts. Actually, you might think that once we finish the asset, we directly transfer to the IRF, and it's when we do this new valuation, no?
Given that we don't have tenants, you know, moratorium in that sense, there is no positive delta on the numbers. What will happen is that in the next six months, once we put the tenants and therefore we show to the evaluators the rents that are higher than expected and also the NOI with a better leverage, there will be an increase on the valuation. We will reflect on the accounts obviously, but below EBITDA level. We never consider this extra value coming from the build- to- rent into our EBITDA.
Regarding your second question, the GRI in this year, we have yielding Sardes and also Hacienda Cabello . With these two, let's say, buildings projects, we should have like EUR 4 million GRI for this year. We will also deliver Sky, so the one from Valencia, as Jordi was mentioning before. But from a GRI perspective, we will have a limited impact this year.
Okay, thank you. Just to clarify, on EBITDA level for the coming year, all the revaluations coming from putting those assets into operation, I'm referring to Neinor Rental, they will be recorded as fair value changes, but always below EBITDA, right?
Correct.
Okay. That has also happened during full year 2021?
Yeah, the same. Actually, if you look at the accounts, you will see the land almost EUR 1 million, and this comes from Sardes and the last valuation of Sardes, so it's below EBITDA.
This year there hasn't been an increase in value of EUR 16 million in the rental platform, right?
It's EUR 16 million, but again, this is once we finish the product and we transfer the product to the RAF. This margin embedded is assumed inside the EBITDA, but then any further revaluation apart from this, it's below EBITDA. In other words, this year, once we deliver-
Jordi correct me if I'm wrong , but Sardes was an outstanding portfolio acquired, already finished, right?
Yes. I guess Sardes is different compared to the others. This is an exceptional one, but we include that in EBITDA. This was set-
This year you included that.
Day one. This was set day one of 2021, so January, so no changes.
Okay. Understood. Thank you.
Hey, operator, I guess there are no further questions waiting. Thanks everyone for joining this conference call. If you have, as always, if you have any follow-ups or doubts, you know, you can write me. Operator, you may now disconnect.