Neinor Homes Accelerates Asset Rotation and Boosts Dividends

Neinor Homes, Spain's leading residential developer, has accelerated its asset rotation plan, signing €260 million worth of deals year-to-date at a 17% premium to GAV and a 42% gross margin, including a new €110 million joint venture (JV) with Orion Capital Managers, Neinor's largest shareholder. Orion holds a 90% interest in the JV, while Neinor retains a 10% stake. The transaction, which was awarded through a competitive process involving over 30 investors, reflects the quality of Neinor's land bank and its development platform.

The €260 million asset rotation plan includes the sale of a land portfolio, which comprises land not yet in development and not scheduled for delivery in the coming years. Neinor expects to monetize this land at a premium, retain exposure to the projects through its 10% equity stake, and earn management fees and promote. This is the same playbook Neinor used with Joaquín Lorenzo and AXA in 2023, and earlier this year with Río Real and Stoneshield. The transaction confirms the significant value embedded in Neinor's land bank.

In addition to the €110 million deal, Neinor has up to €100 million under negotiation as it capitalizes on the buoyant Spanish residential market and strong appetite from institutional investors to invest alongside the company. This strategy is part of the €400 million asset rotation plan for 2026-27 and the land bank optimization strategy.

For 2026, Neinor is on track to deliver €240-260 million in EBITDA and €120-140 million in net income, in line with its guidance. The notarization of Río Real remains pending. In 2027, Neinor has raised its targets to €260-280 million in EBITDA and €160-170 million in net income, or €1.65-1.75 per share, up from the previously guided €150-170 million in net income.

Shareholder distributions have been accelerated due to better-than-expected cash flow generation. Neinor will pay the remaining €80 million (€0.82 per share) dividend in December, increasing shareholder remuneration to approximately €280 million. Additionally, Neinor is targeting distributions of €200-250 million in 2028, bringing total distributions over the coming two years to approximately €555 million (€5.71 per share).

Net debt is expected to decline faster than previously guided. By December 2026, net debt is expected to be in the range of €1,000-1,100 million, unchanged from the previous range, which now absorbs the €50 million total share buyback including the management incentive plan. By December 2027, net debt is expected to be in the range of €800-850 million, 6% below the company-compiled consensus of €881 million. For 2028, Neinor guides to net debt of €550-650 million, 16% below the consensus of €711 million.