FADESAs net profit increased by 57% in 2005 to €181.2 million, compared with 115.7 million last year. This year has again shown the companys continuing ability to achieve positive growth. With these excellent results, FADESA achieved total income of €977.4 million, 42% higher than in 2004, when total income was €687.1 million.
The Groups good progress has led to an increase in the gross margins generated by all the companys areas of activity, with an increase of 52% in total gross margin, which was EUR 388.3 million, compared with 255.7 million in 2004. EBITDA also saw very positive growth, at 291.8 million euros, an increase of 53%.
Looking at the different areas of activity, residential sales, the companys most important source of income, saw significant growth in 2005 of 44%, reaching a total of EUR 925.4 million. The exact figures for sales completed in 2005 were 5,973 units, 52% more than the previous year.
Another indicator showing FADESAs good progress is the number of pre-sold units, which increased 45%. Specifically, the stock of pre-sales at the end of the year was valued at more than 2 billion euros, the equivalent of 11,680 pre-sold units not yet included in the companys results. Of this figure, around 34% relates to second homes and 38% to sales on developments outside Spain.
Operating income generated by the companys asset management activities increased by 200% and stood at 34.5 million euros in only its second year as a business activity for FADESA. Asset management is concentrated on hotels and the development of golf courses linked to the companys residential activities. It currently owns 12 fully operational hotels and a further 17 at various stages of development. With regard to golf courses, the Group has 4 fully operational, 9 under development and 9 at the planning stage, providing added value and services to its housing projects.
Land bank and valuation of assets
FADESAs land bank stood at 20.1 million square metres of buildable land, as at 31 December 2005, of which around 23% is located outside Spain.
The market value of FADESAs property assets as at 31 December 2005, according to a valuation carried out by Richard Ellis, was EUR 8,813 million. The NNAV per share was EUR 38.22, 24% greater than in December 2004.
Distribution of dividends
At a meeting of the Board of Directors, which took place this morning in Murcia, the company agreed to propose at the next General Shareholders Meeting, to be held on 9 May, the distribution of a gross dividend of EUR 46,010,415.6, representing EUR 0.41 per share, compared with EUR 0.27 per share last year. This dividend may be paid in cash, or may be re-invested in shares in the company, at the shareholders discretion.
Major developments during 2005
At the beginning of the year FADESA signed a contract with the Investment Fund BSCH BANIF Inmobiliario for the sale of a 25-storey office building. This office block is part of the building project at Gran Vía in LHospitalet de Llobregat. The second of the office blocks at this development was sold to the Property Group Inbisa in October.
In February, FADESA signed an agreement with HUSA for the hotel chain to take over the management, under a leasing arrangement, of 5 three and four-star hotels owned by FADESA in various parts of Spain.
In May the company reinvested dividends from the 2004 financial year for those shareholders who so requested (66%), and 854,456 new shares were issued in the resulting capital increase.
In the same month, FADESA formed an alliance in Poland with a leading local partner, Prokom Investment, and the company FADESA Prokom Polska was created. As a result of this alliance, marketing started in December of a development of more than 1,900 homes in Warsaw.
In June, FADESA acquired the French company Financière Rive Gauche. The Group is currently at an advanced stage with several property projects in the regions of Paris, Lyons and Rhône Alpes, and has also signed a preliminary agreement with the To