AbitareIn collapses on the Star list of Piazza Affari (-10.14% at the close of the session at 4.43 euros) on Thursday 13 June, after having released the accounts for the six months ended on 31 March. At a consolidated level, the revenues of real estate company Milanese have more than halved from 76.7 to 34 million, the ebit fell from 23.2 to 3.3 million and the net profit from 22.3 to 1.1 million. L’net financial debt it worsened from 38.5 million on 30 September to 55.4 million. In response to the Kepler accounts Cheuvreux files the target price from 7.5 to 7 euros, while confirming the buy ratingafter lowering the 2023-2024 estimates to consider the postponement of some projects.
AbitareIn specifies that work is progressing on Porta Naviglio Grande, due for delivery at the end of the year, The Units, Lambrate Twin Palace, Palazzo Sintesy and BalduccioDodici, while the projects of Savona105, NoLo, Palazzo Grè, Accursio and Naviglio Grande (for over 700 apartments).
Milan stops, we focus on Rome
Management identifies the cause of this decline in the state of the Milanese real estate market. «This year’s half-yearly results are still strongly influenced by the now systematic lengthening of the times for issuing authorizations. The building block in the Municipality of Milan is affecting the entire sector and its supply chain”, comments the president Luigi Gozzini. AbitareIn «currently has 5 projects, which have a total of more than 700 apartments, for which the preliminary investigation phase has already been completed, which are waiting to receive the authorization and for which, given the uncertainty of the timing, we have suspended marketing, despite the continuous increase in demand, driven by the general absence of new products”.
«The 2024 results will also inevitably be influenced by this peculiar situation, which we hope can be defined as soon as possible», adds CEO Marco Grillo. «As already known, our business model is evolving, to adapt to these new contexts, opening up to new opportunities. We continue to invest in the study of other types of ‘home products’, with shorter development times and less environmental impact in the production phase”. And there it is carried out on Rome: «We intend to consolidate our presence in Rome, where we have recently started the marketing of the first project, Bombay Palace, in partnership with Techbau spa. We have also started the first partnerships with other operators, with whom we develop joint projects that allow us to enhance and continue to improve our know-how and our technological platform”.
Current pipeline and outlook
At the current date, AbitareIn’s development pipeline is made up, net of projects already completed and delivered, of 20 areas, for approximately 223 thousand commercial m2, corresponding to approximately 2,450 typical apartments (92-82 m2), located in various semi-central areas and semi-peripheral areas of the City of Milan (with the exception of an area located in Rome), in contexts with high growth potential. Of the apartments in the pipeline, 483 apartments have been sold (on a preliminary basis), for a value of approximately 220 million euros, with contractualized advances (guaranteed by an insurance surety policy) for 68.3 million and 3544 apartments are currently under construction.
To date, the group has delivered 835 apartments, divided into the Abitare In Poste, Abitare In Maggiolina, Olimpia Garden, Milano City Village, Palazzo Naviglio and Trilogy Towers projects, for a total value of almost 310 million euros.
As for the foreseeable evolution of the financial year ending in September 2024, AbitareIn intends to continue the marketing activities of authorized projects, the construction of projects already marketed, as well as the scouting activities for new areas. The company operates as a service provider for third parties for two projects, one in Milan and one in Rome. Furthermore, AbitareIn, «also in light of the current Milanese context, is considering increasing its presence in the Rome market, where the marketing of the first project, Bombay Palace, has recently begun, and continues to invest in the study of new products, which involve the conservation of existing properties, with a reduction in construction times and impact on the environment, both in construction and in terms of energy efficiency”, reads the note. (All rights reserved)
Posting time: 06/13/2024 4.40pm
Last update: 06/13/2024 5.44pm
