Glenveagh Properties has assured that it is on course to fulfil its construction objectives for the year, regardless of a reported dip in earnings. The firm has confirmed the completion of 800 out of its 2,700 unit goal for 2024, with an expectation of more than doubling its earnings per share to reach 17 cents, an increase from 8 cents in 2023.
Despite witnessing a drop in earnings for the six-month period ending in June, falling to €150 million from €172 million year-on-year, the firm continues to anticipate strong revenue growth. The revenue decline has been attributed to the 510 units finalised in their urban segment from previous forward fund transactions, where almost 90% of the revenue had already been recognised in earlier periods. The schedule of closings, now shifted to the early third quarter, has affected suburban completions.
CEO Stephen Garvey has expressed confidence in the company’s robust progress and its willingness to fulfil its annual objectives. The government’s targeted initiatives through Housing For All have boosted the output of new homes, which is estimated at approximately 35,000 units annually, and supports robust commencement growth in 2024.
With a closed and forward-order book worth nearly €1.2 billion across its three business sections, Glenveagh has noted a 22% gain from the €963 million recorded during its AGM in May. The company has received planning permissions for about 1,300 units in H1 2024, and planning permissions have been granted for over 95% of the units slated for 2025.
Continual investment in accordance with its capital allocation priorities has positioned Glenveagh as an attractive partner for landowners. The company is currently investigating a number of significant land transactions in suburban and partnership-led locations.