8th Jun 2023 11:14
(Alliance News) - Glenveagh Properties PLC on Thursday said it has "made good progress so far" this year, with highlights including high demand for suburban units and a strong urban business segment, but said the Irish government can and should do more to support the industry.
The Dublin-based housebuilder said that so far in the 2023 financial year 1,150 suburban units have been sold, signed or reserved, with the market "[continuing] to benefit from very strong underlying demand".
Glenveagh also said its urban business segment was "proceeding to plan" and is focused on building out its contracted portfolio of around 700 apartments and 250,000 square feet of hotel and office space.
It is currently in negotiations with state agencies on multiple urban developments for potential delivery in the 2024 financial year.
The company said it is currently active on 21 suburban and urban construction sites, and has opened four new sites so far this year. It said further new sites and phases on existing ones should open over the rest of this year, with first deliveries expected in next year.
Glenveagh also said it has received permissions for around 3,400 units across 15 applications to date, of which approximately 2,000 are currently in post-appeal periods. Overall, it said it "has made significant progress" with increased confidence on unit deliveries next year and beyond, amid "an improving planning environment".
In early January, Glenveagh had announced a share buyback programme to repurchase up to 10% of its share capital. It said on Thursday that over EUR50 million to date has been returned to shareholders.
Glenveagh reiterated its guidance for the current financial year. It anticipates an earnings per share out-turn of between 7.5 and 8.0 cents each. It said it will report its half-year results on September 14.
Shares in Glenveagh were up 0.4% at EUR1.05 per share in Frankfurt on Thursday.
"We have made good progress so far in 2023 with an advancing order book, strong market demand, improved planning momentum and increased government impetus around demand and supply side initiatives. This supports our confidence around delivering our short and medium term goals," Chief Executive Officer Stephen Garvey commented.
Garvey said a recent consultation paper by the Republic of Ireland government on sustainable and compact settlements was "encouraging".
However, he added that "there remains plenty to do to ensure the country can accelerate housing supply in coming years. Providing ample resourcing to planning bodies, local authorities and utility companies in the near term is critical...The industry also needs a national planning framework that accurately reflects present and future population requirements, supporting viability and designed for appropriately located homes that people want and need."
By Emma Curzon, Alliance News reporter
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