In the third quarter of 2024, the Dom Development Group (the “Group”) outperformed domestic competition, selling a record number of 1,156 properties. This was a 7% increase compared to the very good third quarter of 2023.
During the same period, the Group handed over 598 properties to buyers, 12% more than the previous year, along with a significant increase in the average value of the properties transferred. This translated into a 48% year-on-year increase in sales revenues for the third quarter of this year, reaching over PLN 482 million. The net profit generated in the past quarter was nearly PLN 65 million, 72% higher than the previous year.
The Group also holds a record-breaking potential for revenue recognition in the upcoming periods. At the end of September, the Dom Development Group had over 5.5 thousand properties that had been sold but not yet handed over to buyers. Their total value is over PLN 4 billion.
“In the third quarter of this year, we observed a continuance of market trends from the second quarter, namely a cooling of demand along with a further increase in supply. The past quarter was the fourth consecutive one in which the new supply of apartments in the largest agglomerations exceeded current sales. While most of our competitors were seeing declines in sales, some even in the tens of percent year to year, the Dom Development Group sold a record number of 1,156 net properties, solidifying our position as a leader in the Polish housing market. This result is 7% higher compared to the very strong third quarter of 2023, and 23% higher than the second quarter of the current year,” pointed out Jarosław Szanajca, President of the Board of Dom Development.
The average value of a property sold by the Dom Development Group in the third quarter of this year, which includes the price of the apartment along with any possible finish, tenant’s cellar and parking space, was PLN 828,000 gross, a 14% increase year-on-year. The highest increase, by 41% year-on-year, was recorded in Krakow, where the average value of a transaction exceeded PLN 1 million. The sale of properties in the prestigious Park Matecznego Apartments project, launched this year, made a significant contribution to this.
Strong development in Krakow
Krakow is the youngest but also one of the fastest-growing markets of the Group’s activity. Thanks to the efficient launching of new projects, the offer of Dom Development in Krakow exceeded 650 properties by the end of September this year and was three times larger than the previous year. The entire offer of the Dom Development Group at the end of the third quarter of 2024 included more than 3,000 properties available for sale, up by 44% year-on-year.
The Group is also seeing a record-breaking scale of investments currently being implemented. At the end of September, it included 8,695 properties under construction, a 20% increase year-on-year. In this respect, the biggest increase (112% year-on-year to 1,342 properties) was made by the Dom Development Group in Krakow.
Moreover, the Group had a land bank with a potential to build nearly 20,000 properties, which roughly corresponds to 5 years of sales.
Sales target not threatened
“We are in a very good financial and liquidity situation, with over PLN 1 billion in available financing, which allows us for flexibility in operation, taking advantage of arising opportunities, and increasing land bank. We are currently building a record number of properties and steadily introducing new attractive projects to the market. Considering that in the first three quarters of this year we have already sold a total of 3,110 properties, the Dom Development Group’s goal for 2024 – increasing sales compared to 3,906 net properties sold in 2023 – is not threatened. Today it is very real to exceed the level of 4,000 sold properties. Demand for apartments offered by our Group remains high, both from customers using credit financing and from those buying apartments for cash,” emphasized Jarosław Szanajca.
In the third quarter of this year, the share of cash transactions in the Dom Development Group was 53%, and transactions financed by credit accounted for 47% of total sales.
Nearly PLN 300 million net profit after three quarters
Sales revenues recognized by the Dom Development Group in the third quarter of this year amounted to PLN 482 million and were 48% higher than the previous year. In the discussed period, the Group handed over 598 properties to buyers, that is, 12% more than the previous year, with a simultaneous increase in the average value of the transferred properties by 28% year-on-year. The net profit for the past quarter was nearly PLN 65 million, 72% higher than the previous year.
Cumulatively, in the nine months of this year, Dom Development Group transferred 2,235 properties to buyers, which is 12% less than in the same period of 2023 (2,533 properties), due to the schedules of investments being implemented. Despite this, it recorded an increase in both revenues, which exceeded PLN 1.85 billion (16% year-on-year), and net profit, which reached PLN 296 million (14% year-on-year). The average revenue per property increased by 26% year-on-year.
“We expect the whole 2024 to be very good for the Dom Development Group in terms of financial results achieved. In the fourth quarter, we start handing over apartments in a large number of projects and we assess that the potential for transfers in the current year is significantly higher than in the so far record-breaking 2023, when our customers received keys to 3,831 properties. All our constructions are carried out on time,” emphasized Leszek Stankiewicz, Vice President, Financial Director of Dom Development.
“We ended the third quarter of this year with record potential for revenue recognition in subsequent periods. At the end of September, the Dom Development Group had over 5.5 thousand sold properties that had not yet been handed over to buyers. Their total value is over PLN 4 billion,” pointed out Leszek Stankiewicz.
Advance dividend payment for shareholders
Considering the very good financial and liquidity situation of the Company and in response to the expectations of shareholders, the Board of Dom Development decided to – like last year – pay an advance dividend for 2024. It will be PLN 6.00 per share (a total of nearly PLN 155 million) and will be paid out on December 18. The day of establishing the right to dividend was set for December 12.
Selected consolidated financial results of the Dom Development Group
The financial results for the period between the third quarter of 2024 and the third quarter of 2023 saw an increase of 48% in sales revenue from PLN 325.9 million to PLN 482.3 million. The gross profit from sales also increased by 47% from PLN 102.3 million to PLN 150.8 million. The net profit saw the highest increase at 72% from PLN 37.7 million to PLN 64.7 million.
Over the nine months of this year, Dom Development Group recognized revenues from sales, which exceeded PLN 1.85 billion, 16% year over year, and net profit, which amounted to PLN 296 million, 14% year over year.
Source: https://managerplus.pl/dom-development-z-rekordowym-iii-kwartalem-2024-r-85465
