PARIS (Agefi-Dow Jones)–The real estate developer Nexity confirmed its objectives for 2022 on Wednesday, while its turnover fell in the first nine months of the year, in a context of a new housing market affected by the rise in inflation.
Over the period from January to September, the group achieved a turnover of 2.95 billion euros, down 4% compared to the same period of 2021. This is a figure of new scope of business, i.e. excluding activities sold in 2021. The group considers this performance to be “in line” with its expectations.
In detail, development turnover for residential real estate fell by 3% to 2.06 billion euros, while in commercial real estate, turnover fell 31% to 249 million euros.
“This sharp drop in business real estate stems from an unfavorable base effect, linked to the contribution last year of the order intake for the Reiwa building in Saint-Ouen for 124 million euros”, explained Eric Lalechère, Nexity’s financial director, to the Agefi-Dow Jones agency, adding that “restated for this base effect, turnover is up 6%”.
“The backlog (827 million euros) and the potential (2.1 billion euros) provide good visibility on the outlook for future results,” Nexity said in a press release.
For 2022, Nexity has maintained its outlook. The group still expects a turnover of more than 4.6 billion euros and a current operating margin of around 8%. In addition, Nexity is still aiming for a market share of over 14% in residential real estate in a market expected at 130,000 units.
Analysts polled by FactSet on average expected revenue of 4.72 billion euros in 2022, combined with a current operating margin of 7.9%.
“We are particularly vigilant in the current context on the control of our commitments and the control of our indebtedness”, underlined Véronique Bédague, managing director of Nexity, quoted in a press release.
-Vincent Alsuar, Agefi-Dow Jones; +33 (0)1 41 27 47 39; [email protected] ed: ECH
NEXITY FINANCIAL RELEASES:
http://www.nexity.fr/immobilier/groupe/finance/communiques-financiers
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October 26, 2022 11:46 ET (15:46 GMT)