The -dynamic strategy- model implemented in Spain has enabled Metrovacesa to almost double the value of assets and multiply total sales by 1.8 in Spain alone. Income nearly trebled and earnings per share (EPS) multiplied by 2.5 in the period 2002-2005.
Prior to the presentation of the Group's Business Plan for the next five years, the company announced that estimated results for 2005 had been raised for the second time. Thus, consolidated net income will amount to €370 mln., up 69% on the 2004 figure. In 2005, total revenues, including asset disposals, will be in excess of €1,215 mln., 27% more than the €954 mln. obtained in 2004. The company emphasized Gecina's €80 mln. contribution (six months only) to the income statement and the important strategy of replacing mature assets with others with a higher yield.
Major targets for 2006 are the sale of the Torre Madrid office block, the start-up of activity at two business parks (22@ and Las Tablas), the two shopping centres coming on stream, one in Gandía and the other in Murcia, a hotel in Madrid (Paseo del Arte) starting operations, and the development of 2,800 homes.
Regarding the net income foreseen for 2006, the Group's budget approved by the Board estimates that it will reach €697 mln., as compared to the euros 370 million estimated for 2005. In 2006 total consolidated revenues are expected to reach €2,523 mln., 62% more than the forecast for 2005, while EBITDA (including capital gains on asset disposals) will amount to €1,032 mln., up 55% on the 2005 figure.
The Group's Business Plan (2006-2010)
The investments foreseen by the Group during this period will be in excess of €6,600 million, of which 69% will be in France and 31% in Spain. By business division, 70% will be in assets for rental and 30% in project development. By sector, the largest portion of investment, 58%, will go to offices, 29% to hotels and logistics platforms, 7% to shopping centres and 6% to others.
In line with the asset turnover plan, divestments will also be significant and will amount to over €4,100 million between 2006 and 2010; 75% in France and 25% in Spain, with 48% corresponding to the sale of housing, 49% to offices and 3% to shopping centres.
The total value of he Group's assets (GAV) will be more than €15,500 million in 2005 as compared to €13,608 million in 2004. This asset value is expected to reach between €20,000 and €20,500 million in the next five years, with a cumulative increase of 30%.
According to this plan, the company?s business by segment will go from having 18% in housing development (in Spain), 25% in property-owning in Spain and the remaining 57% in property-owning in France in 2005 to 12% in housing development and 28% and 60% in Metrovacesa and Gecina's property-owning businesses respectively in 2010.
Source: Metrovacesa
