Inmobiliaria del Sur approved this Saturday its accounts for the year 2011, when it registered a turnover of 42.96 million euros, an Ebitda of 19.14 million euros and a net profit of 4.36 million euros, and where the group's president, Ricardo Pumar, has announced that shortly, specifically in a matter of weeks, the transformation of its financial structure will culminate, which will make it possible to convert corporate financing, in the short and medium term, into very long-term financing. term, which gives it "great financial stability".
At the general meeting of shareholders, held in Seville, the annual accounts and the management of the board of directors for the year 2011 have been approved, the application of the result, which includes a dividend distribution of 0.14 euros per share, the re-election of Deloitte to verify the annual accounts for 2012, the re-election for a term of five years of three proprietary directors, the ratification of the creation of the corporate website as the electronic site, the modification of certain articles of the bylaws and the regulation of the general meeting to adapt them to the latest amendments introduced in the Capital Companies Law, in addition to the annual report on the remuneration of directors and the authorization for the derivative acquisition of own shares.
The CEO, Francisco Pumar, in his report on activities, highlighted the group's key figures for the year 2011, highlighting a turnover of 42.96 million euros, an Ebitda of 19.14 million – of which 74 percent came from the property business-, a net profit of 4.36 million, a GAV or gross value of the assets for an amount of 603.27 million euros, a net financial debt of 194.02 million euros and an LTV or loan / asset value ratio of 32.1 percent.
Francisco Pumar explained the main figures and parameters of the company's activities, the situation of the different investee companies and reviewed the promotions that the company has underway and those that will begin in the coming months.
Both Francisco and Ricardo Pumar have explained the process of "deep" transformation of the company's financial structure, which began at the end of 2011, consisting of converting all corporate financing, until then instrumented in medium-term loans and insurance policies. short-term credit, in very long-term loans, with mortgage guarantee on real estate investments.
Ricardo Pumar stressed that this process "is about to conclude and close the last fringes", having already formalized nine of the 10 operations planned with various financial institutions, with a volume of 91 million euros over the 103 million planned, about terms that range between 15 and 21 years, terms that grant "a great tranquility and financial stability and denote the extraordinary confidence of the financial system in the future of the group."
For Pumar, which states that the tenth operation will be completed "in weeks", this process demonstrates "the financial strength of the group", after which he explained that these are bilateral operations "following a closed and common pattern, with some small differences in each operation. "
The president of the group emphasizes that this fact joins the capacity to generate resources and the "important" volume of assets that keep free of charges and encumbrances, that is, "50 percent of its assets destined to leases and own use, valued at 449.1 million and 34.36 million euros of land and promotions in progress ", in addition to the" important treasury "they have, amounting to 27 million euros. In his opinion, all this "gives the group extraordinary financial stability and the possibility to access and face new investments and business opportunities."
Ricardo Pumar stressed in his final speech that "despite the deep and lasting crisis that the Spanish economy in general and the real estate sector in particular, the Real Estate Group of the South has demonstrated, once again, the strength of its model of business, with a strong patrimonial component, which allows it to resist this serious situation, generating positive results and distributing dividends ".
Pumar has highlighted the reduction of personnel expenses by eight percent and the reduction of other operating expenses by 14 percent, the improvement of the negative financial result by 20 percent and the reduction of financial debt in a nine percent, for a total amount of 19.1 million euros, which together with the reduction of the previous year, totals a debt reduction of 42 million in absolute terms, and 25 percent in relative terms.
The president of the group is "hopeful" in a recovery of the real estate sector "to the sound of the Spanish economy," although he acknowledges that it will be "slow".
He also pointed out that "the negative overreaction of the markets, especially in the real estate sector and its generalization over the whole sector, had severely penalized the share price, to the point that the stock traded today four times below its fundamentals. ", after what has been said that" there is no doubt that, when the tempest abates, the share price will return in the place that corresponds ".
Collaboration with financial entities
He concluded by pointing out that the future market and real estate sector "will be very different from the one we had known, smaller but with fewer operators and that the reform of the financial sector opens a wide field of opportunities for solvent and professional operators, operators that financial entities They need to collaborate in the complex management of foreclosed real estate assets. "
At that point, he stressed that Inmobiliaria del Sur "is one of those operators that banks need", because the company "has a solid financial structure, a proven experience in the promotion and construction of quality buildings, a great brand image. and most importantly, it has a great human team, prepared and involved with the objectives and strategies of the company. "
Thus, stresses that in the collaboration with the bank "open a range with many possibilities" and has specified that with a national financial institution is marketing the promotion of 87 homes in Dos Hermanas through an operation in contribution with that entity.
In this way, according to Pumar, Inmobiliaria del Sur may, as a developer, promoter and marketer, "or negotiate that the bank contributes a floor and grants financing for the promotion and at the end the group delivers the finished product for a value equivalent to the value of the land they have contributed, and all this with good financing conditions for the buyer, or also Inmobiliaria del Sur is willing to finish the houses that the bank had under construction and were standing. "
Ricardo Pumar has specified that the promotion of 97 homes in Tomares, which are "practically sold", will be completed; another one has begun in Tomares of 39 houses and the construction of another 78 houses in Seville has begun
He recalled the houses in Dos Hermanas through collaboration with a financial institution and has specified that he has purchased a plot of land in Córdoba for the promotion of 66 homes. It is also promoting 14 semi-detached homes in Tomares, where construction has also begun on a multi-purpose building of 15,000 square meters, which will include offices and commercial premises.
Check here more news of Sevilla.