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Back to list Renta Corporación holds its first AGM as a listed company

Renta Corporación holds its first AGM as a listed company

. Approval of 2006 accounts and new director appointments.

. Chairman Luis Hernández de Cabanyes says 2006 has been an excellent year, “easily exceeding all business and profit growth expectations”

. Strategic Plan forecasts are to be reviewed upwards.

The Renta Corporación Annual General Meeting, held this morning at Palacio de Congresos de Cataluña, has approved the 2006 individual and consolidated accounts. Consolidated net profit was 47.5 million euros, 46% up on 2005.

The Meeting approved a dividend distribution of 14.2 million euros, a 30% payout on consolidated net profit.

The Meeting also approved appointment of new directors César Bardají and Enric Venancio.

Strong growth in 2006, with a 46% rise in net profit. Chairman Luis Hernández de Cabanyes, noted that Renta Corporación has “brilliantly exceeded targets set in the strategic plan, speeding up profit growth. The company has gone public, doubled its size and laid the groundwork to restructure its finance for 2007, while moving the business forward and ensuring growth. It has also made substantial investments, raising the company profile for the coming years.

2006 results reflect strong growth. Net profit was 47.5 million euros, 46% up on 2005, and revenues were up by 84%, totalling 600 million euros, with investment standing at 864 million euros. Increase in average size of operations (from 13 to 17 million euros, four of them exceeding 50 million) and stronger international business (with Berlin joining the Paris and London business) are key strategic milestones for growing the company.

The company has trebled its investment rate and raised its profile. Salient figures for 2006 include investment of 864 million euros, virtuallythree times the 2005 figure (2.6 times 331 million euros), andinventories and investment rights of 1.1 billion euros at year-end. This has been instrumental in raising the company’s profile to generate profit in the coming years. Mr Hernández Cabanyes noted that “reported profit and significant investment are evidence of a sound business model. We are seeking a balance in terms of business and geographic diversification, consolidating Renta Corporación as one of the top Spanish real estate companies.”

Upward forecast review. As for company targets, the Chairman told shareholders that “the outlook for the coming years is excellent and we will be reviewing the Strategic Plan upwards, with an estimated 30% growth on the figure of 47.5 million euros, so forecast net profit for 2008 will be around 80 million euros. The Strategic Plan review details will be advised on publication of 2007 Q1 results.

Dividend payout of 14.2 million euros. The Annual General Meeting approved a dividend distribution of 14.2 million euros, 41.3% up on 2005 – 30% of distributable net profit.

Dividend per share will be 0.57 euros, effective 12 April. This dividend is 24% higher than in 2005 (0.46 euros per share), which is even more impressive considering the company now has an additional 3 million shares, issued when the company went public in 2006.

Renta Corporación shares started trading on 5 April 2006 at 29 euros per share, with a closing price in 2006 of 34.13 euros per share, a 17.7% rise in just nine months.

New director appointments and Managing Director. Shareholders approved the appointment of César Bardají and Enric Venancio as Board members and executive directors. The subsequent Board Meeting, as announced and at the proposal of the Appointments and Remuneration Committee, appointed César Bardají Managing Director of Renta Corporación, taking over from Josep-Maria Farré.

Renta Corporación project, driven by excellence and efficiency. During his speech, Chairman Luis Hernández de Cabanyes told shareholders that Renta Corporación’s corporate and institutional development last year “has changed the company’s profile substantially.” He went on to say that “we are now a leading benchmark in the industry and markets, both home and abroad. The specificity of our business model, added to excellence and efficiency in how we do business, and our ability to identify the best investment opportunities, are values deserving of recognition from investors and pundits.” In this respect, the Chairman highlighted that the company has doubled its size in just one year. “Under the strategic plan, our aim is to continue growing the company, building on innovation and management skills to achieve targets and strengthen our competitive edge.”

Organic and corporate growth. Discussing the Spanish real estate industry, the Chairman told the Meeting that “while our strategic plan envisages organic growth, we will continue to look at opportunities that fit in with our business model as they arise“.

Barcelona, 29 march 2007

 



For more information:
www.rentacorporacion.com

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