Renta Corporación admits impact from the pandemic on its results

Renta Corporación admits impact from the pandemic on its results

La Campana located in Barcelona, the last Renta Corporación's purchase  

This was stated by David Vila, Managing Director of Renta Corporación, in a release: «We understand that this is a temporary situation and, though we believe it could have an impact on this year’s results, we are also sure it won’t affect the overall outline of our strategic plan and the growth that the Group aims to achieve over the next few years».

Renta Corporación currently finds itself in the context of a slowly recovering real-estate sector, in line with the overall recovery of the economy, which is expected to last until the health situation improves. Faced with this situation, David Vila explains that the company will unify the prospects for 2020 and 2021 in order to better appreciate the effects of the Covid-19 crisis. «The real-estate sector is still attractive and currently finds itself in a more professional and institutionalised context, and with less debt, than during the last crisis», mentioned the Spanish company’s Managing Director.

The results from 2019 were encouraging for Renta Corporación, since its net profits increased 3% yoy, reaching around 17.1 million euro. The operating margin has also grown by 12%, totalling just under 30 million euro.

For Luis Hernández De Cabanyes, president of the company, «2019 has been a year with excellent operating results, both for our property operations and for our transactional operations. Our well-balanced accounts and improved debt levels will no doubt help us tackle the growth challenges outlined in our strategic plan in high spirits».

The company’s growth is in much owed to REIT Vivenio which was created together with pension manager APG. Vivenio currently has 3.000 operating residential properties in 31 buildings and 2.000 residential properties under development in 12 projects. The gross value of this portfolio by the end of 2019 was just under 950 million euro. As for the transactional operations, Luis Hernández De Cabanyes considered 2019 to be «a very good year» that helped consolidate the tendency to focus more on the size of the operations as outlined in the strategic plan.

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