Renta 4 | According to information submitted to the CNMV, and following the completion of the 2021–2025 Strategic Plan (with 95% of the turnover target met), Inmobiliaria del Sur has submitted its new 2026–2030 Strategic Plan.
This is a new plan that continues the existing approach in terms of qualitative objectives (increasing presence in Madrid, developing business in the Valencian Community, larger project sizes, etc.), although three new aspects stand out: 1) a reduction in the company’s own development projects; 2) a lower equity stake in joint ventures by 2030 (42.5% for residential projects and 35% for commercial projects, compared to approximately 50% to date), and 3) the development of co-living and flex-living assets.
With regard to cumulative financial targets, Inmobiliaria del Sur expects to achieve between 2026 and 2030 (figures in proportional terms): 1) turnover of between €1,095 million and €1,215 million (up 31.5% compared with the lower range of the previous plan); 2) EBITDA of between €230 million and €250 million (up 21.1% on the lower range of the previous plan), and; 3) Net profit of between €175 million and €195 million (up 86.2% on the lower range of the previous plan, although the new figures would include changes in the fair value of assets).
The company also announces the distribution of between €67-74 million in accumulated dividends over the 2026-2030 period (45-50% pay-out; €0.75 per share average annual dividend vs €0.44 per share in the 2021-2025 period; in line with pay-out).
Assessment: Positive news insofar as the new plan provides medium-term visibility, given that we understand the company will seek a more efficient allocation of capital, building on its recent track record.
Furthermore, it is worth noting that Inmobiliaria del Sur states that 75% of EBITDA and net profit will be generated between the financial years 2028 and 2030, so we can expect weaker results in 2026 and 2027. In this regard, we understand that these two financial years will see more intensive investment in land (€220–240 million in capex for land replacement and development within the overall plan).
Recommendation and Target Price Under Review.
