Earnings call transcript: Aedas Homes Q1 2025 surpasses €1 billion revenue again

Aedas Homes reported another strong quarter, with total revenue reaching €1,156 million, marking the second consecutive year the company has exceeded the €1 billion mark. The Spanish residential developer saw a 7% increase in home deliveries, contributing to its impressive 30.56% year-over-year revenue growth. Despite a slight decrease in gross margins to 22.12%, the company maintained a robust return on equity of over 15%. According to InvestingPro, the company maintains strong financial health with an overall score of 3.35 out of 5, supported by eight key insights available to subscribers. Aedas Homes’ stock saw a positive movement, with a 3.24% increase, bringing the share price to €27.10. The company currently trades at an attractive P/E ratio of 6.3x and offers a significant dividend yield of 7.68%. InvestingPro analysis suggests the stock is currently undervalued, making it an interesting candidate for value investors. For more undervalued opportunities, check out the Most Undervalued Stocks list.

Key Takeaways

• Aedas Homes’ revenue exceeded €1 billion for the second consecutive year.
• The company delivered 3,151 units, a 7% increase from the previous year.
• Stock price increased by 3.24%, reflecting positive investor sentiment.
• Net financial debt reduced by €44 million, with a lower debt cost of 4.4%.
• Expansion into new market segments like flex living and affordable housing.

Company Performance

Aedas Homes continues to solidify its position as a leader in the Spanish residential development market. The company delivered a total of 3,151 units, marking a 7% increase compared to the previous year. This growth was accompanied by a 5% rise in the average selling price, which now stands at €436,000. The company also expanded its offerings by entering new segments, such as flex living and affordable housing, and launched its second ESG strategic plan for 2024-2026.

Financial Highlights

• Revenue: €1,156 million, exceeding €1 billion for the second year.
• Home deliveries revenue: €1,028 million.
• Land sales revenue: €115 million.
• Services revenue: €13 million, a 40% increase year-on-year.
• Gross margin: Slight 2% decrease.
• EBITDA margin: 5% decrease.
• Return on equity: Above 15%.

Market Reaction

Aedas Homes’ stock price increased by 3.24%, rising to €27.10 following the earnings announcement. This movement reflects investor confidence in the company’s strong performance and strategic initiatives. The stock remains comfortably within its 52-week range, with a high of €31.10 and a low of €20.15.

Outlook & Guidance

Looking ahead, Aedas Homes expects to maintain its revenue above €1 billion in 2025, with a build-to-sell gross margin projected to exceed 25%. For a deeper understanding of Aedas Homes’ potential, InvestingPro subscribers can access comprehensive research reports that transform complex financial data into actionable intelligence, including detailed analysis of the company’s growth prospects and market position. The company plans to distribute a minimum of 50% of its net income as dividends, proposing a dividend of €3.15 per share. Aedas Homes has revenue visibility through 2029, supported by a robust order book of €1,660 million and 7,500 units currently under construction.

Executive Commentary

CEO David Martinez emphasized the company’s achievements, stating, "Today, the Aedas platform has already delivered 17,000 plus homes, generated 41,000 jobs." He attributed the company’s success to a solid business strategy, reinforcing its leadership in the sector. Tamara Maranion, Director of Capital Markets, highlighted the expected generation of more than €40 million in management fees, underscoring the strength of the co-investment strategy.

Risks and Challenges

• Scarcity in the land market could impact future development projects.
• Decreases in gross and EBITDA margins may affect profitability.
• Economic uncertainties in Spain and broader Europe could influence demand.
• Competition in the Spanish residential market remains intense.
• Regulatory changes related to housing and construction could pose challenges.

Q&A

During the earnings call, analysts raised questions about the scarcity of land in certain areas, which the company acknowledged as a challenge. Aedas Homes also discussed its co-investment strategy, expecting to generate significant management fees. The company remains optimistic about bond refinancing opportunities, citing strong capital markets.

Full transcript - Aedas Homes SL (AEDAS) Q4 2025:

Rafael Cruz, Investor Relations, Nederas Home: Good morning. I’m Rafael Cruz from Nederus Home’s Investor Relations department. On behalf of the company, I’d like to thank you for attending this call on our fiscal year results, which ran from April 2024 to March 2025. This presentation has been published on both the regulators and Nederas Home’s websites. Today’s session will be covered by Dave Martinez, CEO Maria Jose Leyar, CFO and Tamara Maranion, Director of Capital Markets.

Afterwards, we will move to Q and 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 asking 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 documents’ legal disclaimer.

And now I will hand things over to David. David, the floor is yours.

David Martinez, CEO, Aidas Homes: Thanks, Rafa. Thank you for joining us today for our full year 2024 webcast. Let me start off by saying that Aires Homes has delivered an outstanding operating performance this past year, bringing in over 1,100,000,000.0 in revenue. Before we get into the details, I’d like to share four key drivers of this success. First, the Spanish economy continues to enjoy a very positive outlook.

And with the structural imbalance between supply and demand and benign monetary environment, growth prospects for our sectors have been strengthened. Here at Airdas, we have made the most of these tailwinds and have had a record setting year for forward sales with over 3,200 units sold, giving us an order book at GRN valued at nearly EUR 1,700,000,000.0. Third, we continue to lead the sector in terms of delivery volumes and revenue with over 5,200 units delivered. And for the second year running, have generated revenue over EUR 1,100,000,000.0. And fourth, the diversification and growth of our platform, which has made Airdas the go to industrial partner in Spain.

Now I’d like to recap how we have consolidated and diversified the platform in the past year. And then Tamara and Marie Jose will take you through the operating activity and financial results in greater detail. Thanks to our team’s ability to originate attractive opportunities, this past year, we were able to double our annual investment, committing to a total new volume of EUR $450,000,000 overall, including the pending CapEx for these investments. These investments volume comprises our entry into the flex living space through three co investments: new concessions for affordable housing in Madrid organic investment via one off acquisitions like every year the acquisition of Grupo Priesta and the acquisition of a land bank from Habitat. All in all, we added over 7,400 units to our land bank under management with a very strong focus on Madrid.

And 85% of this newly invested land is ready to build, meaning that it is highly liquid. Keeping with our strategy of optimizing the use of capital on those new investments, which are 100% owned by Eiras and have a ready to build cost of $343,000,000, we have been able to defer 170,000,000 in payments, which correspond to acquisition price, pending CapEx and transactions not yet formalized. Furthermore, we have also deferred 143,000,000 in pending payments for investments in previous years. Now let’s take a look at the deals we closed to manage developments for third parties. This past year, we cemented our reputation as the go to industrial partner in Spain by boosting our affordable housing and new living solutions offer and exporting our leading build to sell practice across the portfolio to our joint ventures and management only contracts.

This activity brought the developments we managed for third parties to a new high at EUR 1,100,000,000.0 of new investments under management. This represents around 3,400 units, and we expect to generate over EUR 40,000,000 in fees from our management services for these units from fiscal year twenty twenty five onwards. Of the nearly 4,000 active units in our land bank under management, 80% are on the market and around 7,500 are under construction, meaning the company is well positioned in terms of converting these assets into cash in the coming years. Our push to scale up and diversify over the past year means that at the March, our total land bank under management stood at 20,200 units with an expected attributable gross development value of 6,800,000,000.0. 70 7 percent of this managed land bank is 100% owned by Eiras, while the remainder is in co investment vehicles and management only contracts, and 81% of the land bank is for our core build to sell product.

These volumes will cover our needs to maintain annual revenues at the EUR 1,000,000,000 level, while generating a stream of fees to continue to improve in our return on equity. Now I will hand things over to Tamara to take

Rafael Cruz, Investor Relations, Nederas Home: us

David Martinez, CEO, Aidas Homes: through our operating performance and then Maria Jose for financial results.

Tamara Maranion, Director of Capital Markets, Aidas Homes: Thank you, David. Our 2024 fiscal year was exceptional in terms of sales. With absorption levels of an upward trend and surpassing the 7% threshold, we recorded a 56% increase in the value of BTS transactions. This means that the company surpassed the 1,400,000,000 mark, thanks to the forward sale of 3,224 BTS units at an ASP of €436,000, up 5% over last year, focused on the primary residence market and our Spanish customer base. This past year, we not only hit a milestone in our net annual sales volume, but also in the number of units we handed over to customers and institutional clients.

Excluding the 2,060 affordable units delivered under plan b one, given that there was no direct economic exposure in delivering those units, the company once again demonstrated its strong operational capacity with a 7% increase in total deliveries, handing over 3,151 units for a total value of EUR 1,100,000,000.0. Of this total, over EUR 1,000,000,000 corresponds to the delivery of 3,070 units from our residential development business line, while the remaining $49,000,000 in value comes from the delivery of the first eighty one units from co investment vehicles formalized in fiscal year twenty twenty three. Product mix drove the 4% increase in the ASP of deliveries as five eleven units from VTR projects were delivered during the year. Excluding these VTR deliveries, ASP will have improved by 6% with those deliveries concentrated in the primary residence segment delivered to financially solving customers with low financing needs. The outcome of these sales and deliveries activity coupled with the impact of Grupo Priesta corporate transaction is a robust order book value at €1,660,000,000 1 hundred percent comprised of PTS product at an ASP of €444,000 with a significant weight of projects in our East And Costa Del Sol regional branches.

This order book, of which 74% is under private contract, 8% points above last year, has shown great resilience with the private contract cancellation rate remaining below 1%. The company has a strong visibility over its revenue goals in the coming years. 100% of the residential development project is scheduled for delivery over the next two years, which are expected to generate EUR 1,000,000,000 annually, are already on the market. Sales and marketing on this project are going very well, with delivery coverage levels of 76 for fiscal year twenty twenty five deliveries and 39% for fiscal year twenty twenty six deliveries, well above those coverage ratios at the end of last year. This project also benefit from optimal construction progress as we have already broken ground on 80% of our fiscal year twenty twenty six deliveries, which is a six percentage point improvement over last year.

In addition to these coverage levels, let me point out that on the co investment front for BTS, we expect to deliver product value at over EUR $630,000,000 over the next two years. As part of our corporate responsibility strategy and following the successful rollout of our first ESG strategic plan, we launched our second ESG strategic plan in April 2024, covering the period twenty four to twenty six. This new plan, now in its second year, maintains the core lines of action of the previous plan, while incorporating three additional actions and also adding a new strategic action line, the circular economy, which we consider material and key to achieving our sustainability goals. During the past fiscal year, we made significant progress on the eco sustainability front, notably in, first, improving energy efficiency with 71% of our completed projects receiving an AA Energy Performance Certificate versus forty two percent three years ago. Second, calculating scope three emissions for the first time.

And three, defining and implementing our decarbonization roadmap. And on the social front, our commitment to facilitating access to affordable housing has achieved major successes, not only through the on schedule delivery of the first two thousand and sixty units under Plan B1, but also by intensifying our efforts in this area, having broken ground on nine forty four additional units designated for affordable rental under acquisition model and acquiring land zone for development of over 900 affordable units. Now I’ll hand things over to Maria Jose, who will take us through the evolution of our key financial metrics.

Maria Jose Leyar, CFO, Aidas Homes: Thank you, Tamara. First, I’d like to highlight that this is the second consecutive year in which we’ve generated revenues exceeding €1,000,000,000 reaching a total of €156,000,000 this past year. Of this amount, 1,028,000,000.000 came from revenue generated through home deliveries. Land sales contributed hundred and 15,000,000 Of this, 82,000,000 corresponds to sales linked to co investment transactions with third parties. Lastly, our service activity generated 13,000,000 which represents a 40% increase over the previous year.

As for gross margin, we saw a 2% decrease mainly due to the increase in volume of build to rent deliveries as well as land sales to co investment vehicles, which were plots acquired within the last eighteen months. The EBITDA margin decreased by 5%, driven by the greater volume of second home deliveries, which carry higher sales commissions than primary residences and by the integration of Grupo Briessa, which added $4,400,000 in unbudgeted costs, including severance payments. On a more positive note, the net profit benefited from the increased revenue from co investment projects and in particular from the impact of the Priesta acquisition as the value assigned to acquired assets exceeded the price paid by $52,000,000 Let’s now break down the performance of each business line. Starting with our build to sell line, revenue growth reflects the strong sales momentum that David and Tamara just described. Revenue from deliveries rose by 7%, of which 2% came from a higher ASP.

This increase aligns with both our investment strategy and our price optimization strategy. In terms of margins, as anticipated, build to sell products completed during the fiscal year delivered a margin of 24.6%, while units completed in previous years and delivered this past year posted a 21.3% margin. Looking ahead, we expect the gross development margin for build to sell to exceed 25% in 2025. Also worth noting is the rise in ASP across our entire build to sell portfolio on the market, reflecting our target customer profile and pricing optimization strategy. In the build to rent segment, we delivered three projects this year with a development margin close to 18%, which showcases the quality of these developments.

Additionally, Aida’s Homes was awarded three new projects under the plan vivid three initiative aimed at delivering affordable how rental housing, a further demonstration of our commitment to affordable housing in line with our participation on plan b one. Moving on to our real estate services line, I’d like to highlight the excellent performance with revenue growing by 40.2% year on on year. During the year, we signed a new co investment agreement, closed two new flex living deals, incorporated management contracts from Group of Trieste and signed a new management only agreement that is without an equity stake. To support this growth, we reinforced our services team, especially in flex living and concessions, which naturally impacted gross margin. In 2025, we expect another significant increase in revenue from this business line, which will continue to drive improvements in return on equity in line with our strategic goals.

Regarding land sales, I’d like to distinguish between natural land bank rotation and sales to co investment vehicles. In line with our land bank rotation strategy, we sold plots worth €32,000,000 with a gross margin of 4,800,000.0 improving our operating cash flow. And on the co investment side, we finalized a new agreement selling plots valued at €82,000,000 It’s important to note that this land was very recently acquired. Now let’s take a look at the balance sheet. I’d like to focus on four key aspects, inventories, cash, long term investments in associates and debt.

First, inventories remained stable compared to last year despite higher delivery volumes, demonstrating our firm commitment to investment throughout the year. Second, available cash flow improved by $52,000,000 driven both by revenue growth and by optimized investment structures. On the asset side, we saw a rise in the value of our equity stakes, reflecting the new co investments in alternative lines like flex living and concessions and our traditional build to sell line. Finally, I’d like to highlight the stability and structure of our debt, which I’ll explain further in a moment. Regarding our debt profile, 45% remains at fixed rates.

In April 2024, we amortized 70,000,000 of the green bond we issued in 2021, bringing the outstanding principal down to 255,000,000. The favorable interest rate environment allowed us to reduce our average cost of debt to 4.4% compared to 4.8 last year. We faced 103,000,000 in maturities this year and $255,000,000 in green bond maturities next year. As shown in the chart on the right, our available liquidity at year end nearly covers maturities for the next two years. On cash generation, I’d like to emphasize that our free cash flow reached nearly €175,000,000 allowing us to reduce net financial debt by 44,000,000 This was achieved by maintaining inventory levels and increasing the value of our equity stakes.

We closed out the year with moderate leverage, particularly when considering the high revenue visibility we have for the coming two years. Finally, I want to share the results of the land bank valuation as of year end. Our 2024 investment strategy is reflected in the increased weight in the gross development product of nonactive units, up by 84%, tied to investments in the Habitat Land Bank, primarily located in Madrid and with a longer maturity period. Regarding gross asset value and considering only the land bank that is 100% owned by Eiras Homes, the value of these assets reached almost 1,900,000,000.0, including 425,000,000 in unrealized capital gains. On the other hand, the valuation of land held by our associates reached 688,000,000.

This growth contributed to an increase in the net asset value per share to EUR 33.89. And now I’ll hand it back today to David for his messages on shareholder remuneration and closing remarks.

David Martinez, CEO, Aidas Homes: Thanks. On the back of this robust set of results that Marie Jose has just shared with us and given the strong visibility the company has over future revenues, the Aidas Homes Board of Directors has approved a new, more attractive shareholder remuneration policy. According to this policy, the company will distribute a minimum dividend of 50% of the attributable net income and then have the possibility of distributing additional dividends up to a net loan to value of 25%. In line with this new policy, at the upcoming Annual General Meeting in July, the IRAS Homes Board of Directors plans to propose the distribution of a dividend of EUR 3.15 per share with the following breakdown: EUR 2.58 per share against fiscal year twenty twenty four profit and EUR $0.05 7 per share against the share premium account. This dividend payment of EUR 136,000,000, if approved, will take place post AGM and once payout occurs.

Total total shareholders’ remuneration distributed peer dividends since July 2021 will have surpassed EUR $580,000,000. Well, to close, I’d like to share four key messages with you. First, after a record breaking sales performance, Eira’s consolidated order book is valued at nearly EUR 1,700,000,000.0, and the company has unparalleled visibility of our revenue goals for this year and next. Second, thanks to the acceleration in deliveries this year and an improved cash position, the company continues to enjoy privileged financial stability. Our focus, as always, is on maintaining a stable capital structure while improving cash flow and return on equity, which is now above 15%.

Third, on the back of an outstanding year for investment and asset diversification, the Airdas platform is fully dimensioned and consolidated. Our success and leadership of the sector is driven by a solid business strategy that we have honed over the years, fundamentally focused on location, quality and target market, as well as the more recent diversification of our platform to focus on services for third parties and affordable housing and flex living products. And finally, the strength of our land bank under management and the fact that it is 70% active means Airdas manages the largest active residential portfolio in Spain, with 80% of these units on the market and over 7,500 units under construction. The past year has been an extraordinary period for the company. And as of today, the Airdas platform is uniquely positioned to capture opportunities in the Spanish residential market.

This means that our outlook on growth and our capacity to continue generating significant value for our shareholders in the future is very positive. The credit for this success goes to our talented and dedicated team of professionals. We have come a long way together in a short period of time. Just nine years ago, we were a small group of people with a vision of producing homes in a different way. Today, the AIDAS platform has already delivered 17,000 plus homes, generated 41,000 jobs, shape the transformation of the sector and become the leading residential development platform, a benchmark in in Spain.

While while I feel very proud of everything we’ve achieved and especially these record results, what I am proudest of is, leading this committed team and having the

Rafael Cruz, Investor Relations, Nederas Home: Okay. Now the ADAS management team will be happy to take your questions. Operator, please, you can go ahead.

Operator: Thank And And our first question comes from the line of Fernando Brill from Alantra. Please go ahead.

Fernando Brill, Analyst, Alantra: Hello. Good morning. Thank you very much for the presentation, David, Ana, Jose and Tamara. I have a couple of questions, please. First, on PTS margins.

Could you please give us a split between the land costs and the construction cost on your cost of goods sold as a percentage of sales? And also how this has evolved in the past few years? And then also on margins, so you’ve shown improving trends in BTS margins along fiscal year twenty twenty four? How do you expect margins to behave in this fiscal year in 2025? And last is on the land.

So how do you see the land market? Mean, scarcity remains very high. So I don’t know if you are also foreseeing certain inflation in the land market. Thank you.

Management Representative, Aidas Homes: Thank you, Fernando. I will cover your questions, that’s okay. Regarding the weight of the components of cost of goods sold over the last two years, I can confirm that what has impacted 2024 margins as we had already anticipated is mostly the hard cost, an increase on hard cost we saw over 2021, ’twenty two. In 2023, our HPA pass through to our customers was not as strong as it’s been in 2024. And therefore, this has affected the ’twenty four margin.

In any case, it’s been above the expectation we had at the beginning of the fiscal year, where we anticipated gross margin for product completed this year around 24%. Regarding our guidance for 2025 margin, where you know we have already a very strong presales number, it’s expected to be around 25%. I will let David comment on the land market.

Management Representative, Aidas Homes: Hi, Fernando. Well, regarding the land market, as you know, we are starting to see some shortage of ready to build land in some areas. But one of the strengths of Aeiras, it’s the capacity and the ability to source land from its regional branches. Last year was a clear example of this. And we front loaded our land bank with enough ready to build plots till well, will allow us to keep securing revenues over €1,000,000,000 till fiscal year twenty twenty nine included.

So this gives us an excellent position to keep having a dynamic approach to land investing and exploring other areas. This year, we have a new operation in Andorra. We have operations in Almeria. We’re exploring other operations in other regions, not traditional areas of the company. So on one side, it’s true that in somehow the spots, the ready to build land market is having scarcity, but there are some other areas and the configuration of the company will allow us to keep sourcing the land we need to maintain these revenue levels in the long term.

Operator: Our next question comes from the line of Ignacio Romero from Bank Sabadell. Please go ahead.

Ignacio Romero, Analyst, Bank Sabadell: Yes. Hello. Good morning. Thank you for the presentation.

Ignacio Dominguez, Analyst, JP Capital: I have two technical questions. The first one is on page 26 of the presentation. I see that GTV is going up 23%, but gross asset value is basically flat. So is that because of the core investments that are included in the GDV and not in the gross asset value figure? And I’ll ask the second question if you want later.

Management Representative, Aidas Homes: Yes. Thank you, Matthew. Apologies because our line seems to be a bit poor today. If I understood your question correctly, regarding the evolution of NAV, considering that, as you mentioned, gross asset value is flattish versus last year. Yes, the increase relates to two factors, as you mentioned.

One is our percentage of stake on associates. And the second one is as well our cash flow or our cash available at hand and net debt position at the close of the fiscal year. That is explaining the improvement on NAV per share.

Ignacio Dominguez, Analyst, JP Capital: Okay. Thank you. But I was referring to a gross development value on Page 26 of the presentation on the top of the chart, I see gross development value going up 23%.

Maria Jose Leyar, CFO, Aidas Homes: But the

Ignacio Dominguez, Analyst, JP Capital: G and A B only goes up. It’s basically flat.

Management Representative, Aidas Homes: Sure, yes. On gross development value, as you mentioned as well, yes, we are including there gross development value of the associates over which we have a participation. And in we are not including we are not reflecting total valuation of those assets of those stakes. You can see on the comments on the right, we are providing the value or the GAAP of those co investments without multiplying that through our stake.

Ignacio Dominguez, Analyst, JP Capital: Okay. Perfect. Very clear. Thank you very much. And my second question is related to the contribution of the co investments going forward.

Could you please give us a guidance? I know you mentioned something in the presentation before, but I couldn’t hear it well. I guess we’d like to know what you have seen in terms income from these co investments in the next few years. Please.

Tamara Maranion, Director of Capital Markets, Aidas Homes: Ignacio. This is Tamara. So as you can see in the presentation, actually in Page 14, where we are talking about the coverage ratios, we are seeing the total amount of value of those units that we are expected to deliver over the next two years, and we are expecting to deliver more than EUR $630,000,000. So obviously, this will revert into dividends into our income statement and cash flow. And from the management point of view, in the in terms of fees, we are expecting to generate with the new co investment signed throughout this year more than EUR 40,000,000.

And this is throughout a period of approximately four to five years.

Operator: Our next question comes from the line of Ignacio Dominguez from JP Capital. Please go ahead.

Ignacio Dominguez, Analyst, JP Capital: Good morning. Thank you for your presentation and taking our questions. I have three on my side. If you prefer, I can go one by one. So firstly, on the recent news, the press report you don’t cancel the potential exit.

Could you provide any updates on how the process is going? Thank you.

Management Representative, Aidas Homes: Hello, Ignacio. Well, as you know, we are a trending topic today. But as you can understand, this is something I can’t comment on.

Ignacio Dominguez, Analyst, JP Capital: Okay. Moving to the next one. My second question is on full year twenty twenty five guidance. What can we expect in terms of revenues and EBITDA?

Management Representative, Aidas Homes: Ignacio. As you know, we usually don’t provide guidance on full EBITDA, but we do provide guidance on margins on build to sell, which is 90% probably of the business. For next year, you know that we don’t have scheduled any build to rent deliveries because we just have deliveries for 2026. And on that front, our expectation is to be, again, above €1,000,000,000 in revenues. I have already provided guidance on gross development margin for build to sell.

Ignacio Dominguez, Analyst, JP Capital: Okay. You very much, Maria finally, my last question concerns the bond refinancing. How do you see the market? And what terms do you anticipate for a potential refinance? Yes.

Management Representative, Aidas Homes: On the refinancing front, we are working on different paths. And I have to say that the capital markets is still strong. There was some uncertainty over the month of April, but it’s gotten back to recent transactions and the pricing and what we see on the market is still within expectations. So it’s a strong market.

Maria Jose Leyar, CFO, Aidas Homes: But there is other avenues we can pursue. Thank you.

Rafael Cruz, Investor Relations, Nederas Home: Okay. We can now take questions coming from the webcast platform. So the first question comes from Mariano at Santander. Most of your portfolio is in what we could consider Tier one regions. Could you please share some thoughts on how Tier two and three are evolving?

And on top of that, if you are considering, at some point, entering those markets? ARAMBARRI:]

Management Representative, Aidas Homes: Well, this is very similar to the question I answered at the beginning. Yes, the during 2024, we have front loaded our land bank. So we are very comfortable with the land bank we have to keep providing revenues till the end of twenty twenty nine fiscal year. It is true that the market is evolving and the land market is evolving. And in some areas, there’s scarcity in relatively land and some prices are going up fast, possibly Costa Del Solif, 1 of these areas that traditionally, when the residential markets boom, land prices go up really fast.

As I mentioned before, we have a really close approach and dynamic approach to land sourcing. And our teams keep exploring different locations, which I wouldn’t refer them to Tier one or Tier two or Tier three because depending on the evolution of the markets, some land, which today might be scheduled in Tier two group, In six months’ time, can be Tier one easily, same land, but because of the evolution of the demand, can be in Tier one. So the goal here is to read the market to see where the opportunities might arise and to have the teams ready to acquire this land. And this is what these teams, our regional branches, have been doing during all these years and keep doing so. Thanks.

Rafael Cruz, Investor Relations, Nederas Home: Okay. So all the following questions that we have received have been already answered. So this concludes today’s presentation. If you have any follow-up question, the Investor Relations team will be delighted to take them. Thank you very much for joining us.

And I remind you that Aydas Homes will be publishing a trading update on our Q1 operating activity on July 2025. Have a nice day.

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