The leading French real estate developer, Nexity, fell by more than 20% on the Paris Stock Exchange on Thursday, with shareholders sanctioning the elimination of their dividends and the announcement of an “in-depth” reorganization of the group, which is not making any progress. ambitious goal for 2024.
Around 9:50 a.m., Nexity shares fell 21.75% to 10.40 euros, after briefly falling below the threshold of 10 euros, 9.75 euros in the first exchanges, reaching their lowest levels since 2009.
In 2023, Nexity’s turnover fell by 9% to 4.27 billion euros, slightly below its target of 4.3 billion, revised downward in the middle of the year. The net result remained narrowly in the green with a net profit of 19 million euros compared to 188 million in 2022.
No dividend
Above all, the promoter announced that it would not pay a dividend to its shareholders, whereas until now it had wanted to offer them a payment of at least 2.50 euros per share.
To compensate for the results of this year, which the group describes as a low point, and to control its debt, Nexity has sold its Portuguese and Polish subsidiaries, and above all wants to shed its services branch. The group does not set any objectives other than a positive operational result and a financial debt significantly lower than at the end of 2023.
A PES in preparation
Developers and builders are caught between rising construction costs, caused by material prices and stricter environmental regulations, and the collapse in demand, caused by difficulties in accessing credit and the gradual end of tax incentive schemes.
Faced with the difficulties in the sector, the group has decided to initiate in the coming weeks the information-consultation process of the IRPs (personnel representative bodies, Editor’s note), prior to the implementation of a plan to safeguard the employment, according to a press release, which has not yet defined how many jobs would be affected.
In 2023, Nexity had already carried out 179 contractual terminations and 110 layoffs within its Promotion-construction division, according to Emmanuel Brie, CFDT union representative for this branch.
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