Glenveagh Properties on track to deliver 1,400 new homes this year
Home builder Glenveagh Properties said it is on track to deliver 1,400 suburban homes in 2022 with 80% now sold, signed, or reserved.
In a trading update ahead of its AGM today, Glenveagh said it has a total order book of 2,160 units across its suburban and urban segments.
These include 358 suburban homes currently reserved for 2023 and 682 urban apartments at various stages of development.
Glenveagh said the continuing supply chain constraints and geopolitical backdrop has led to inflationary pressures that are directly impacting the group’s material and commodity costs.
But it added that it had seen early signs of labour availability returning and expects this trend to continue. It said its expectation for inflation this year remains at 6%.
“The cost pressures are being offset by a level of house price inflation that reflects the underlying strength of the market and the group’s attractive product offering,” the company stated.
Glenveagh said that with the closure of its East Road deal expected in the coming weeks, it has identified a further €75m as excess capital.
The company said it intends to start a new share buyback programme of up to €75m upon the completion of the sale of this site – subject to renewal of the related resolutions at today’s AGM.
This third share buyback programme will bring the total capital returns announced since its previous AGM last year to about €265m, it added.
The company announced the signing and sale of the high-rise apartment site at East Road in Dublin’s Docklands for €63m to Eagle Street Partners Group.
The East Road site was bought by Glenveagh in 2017 and and now consists of 554 residential units with ancillary commercial space.
“Strong demand for our high-quality, sustainable homes has resulted in the continuation of a supportive trading environment in recent months,” said Glenveagh’s CEO Stephen Garvey.
“We remain focused on combining greater scale with greater integration in our supply chain, giving us enhanced certainty over more of our key inputs and driving more efficiencies throughout our business,” the CEO said.
“The business is in a strong position, with excellent product, rigorous cost control and robust customer demand. Our position is underpinned by close alignment with Government policy to increase supply urgently and to get more keys in the hands of first-time buyers, renters and people who need social housing,” he added.
Shares in the company moved higher in Dublin trade today.