Metrovacesa Stock

Hello. Good morning. Welcome to the Metrovacesa 1H 2026 Results Webcast. My name is Juan Carlos Calvo, Director of Corporate Development and Investor Relations. And with me today, as usual, we have [ Jorge Perez de Leza ], Chief Executive Officer of Metrovacesa; and Borja Tejada, Chief Financial Officer. Together, we will present an overview of our operating activity and financial results for the first half of the year. The presentation materials were released this morning and are available on both the CNMV website and the company's website. We have also distributed them by e-mail to our usual list of analysts and investors. [Operator Instructions] Now Jorge, please go ahead.

Thank you, Juan Carlos, and good morning, everyone, and welcome to our First Half 2026 presentation. I will start with the highlights. I would catalog our results as solid in this first half of the year. Our total revenues are close to EUR 316 million, which is 2.4x what we had last year, mainly driven by 809 units delivered in this period. We are also confirming our gross margin improvement, which stands at 27.2%, boosting our EBITDA to close to EUR 50 million and also a positive net profit of close to EUR 18 million compared to negative figure last year. We've had a strong cash flow generation of close to EUR 130 million and also with a stable debt position despite the significant dividend that we already paid in May of almost EUR 1 per share. In the market context, we will see that the Spanish housing demand remains at healthy levels despite a moderation that we see in some transaction volumes, especially in secondhand and in some limited markets.

I think I will skip Page #7 as we will touch upon the details later on in the presentation. I hand it back to Juan Carlos to give us a brief overview on the market, Page #8.

Yes, just briefly comment on the recent figures about demand. The number of transactions seems to be stabilizing above 700,000 units in the year. It's true that in the last few months, at the beginning of the year, we have seen some slowdown in the volume with a decline of around 3% year-on-year. But actually, the total figure stays above 700,000, which is, in our view, a very healthy and robust indication of demand. On the other hand, house prices continue to increase according to the [indiscernible] statistics, they're still growing at double digits year-on-year, driven by the imbalance between supply and demand. And construction costs are showing some volatility in the recent months, but they are growing by lower growth rates than prices, and this is supporting development margins. On the other hand, mortgages are growing slightly more than the volume of transactions. That means that the penetration of mortgages is rising slightly to around 72%. But overall, this pictures and overall quite a healthy situation of the housing market in Spain. Back to Jorge.

Yes. Thank you, Juan Carlos. So moving on to the operational figures. In terms of residential deliveries, we delivered a total of 809 units, which is almost double what we delivered last year and with an average selling price of EUR 343,000 per unit, which is an 11% increase. Basically, with the number of deliveries, we provide a more homogeneous distribution of the deliveries throughout the year and also gives us more clarity on our target to deliver around the same units as we delivered last year.

As I mentioned before, our margin improvement consolidates and we stand at 27.2% gross margin compared to 22% last year. And our deliveries have been focused on key markets like Valencia, Seville, Barcelona, Malaga and Canary Islands. In terms of presales, we presold in total 607 units, which is an evolution consistent with our presales -- strong presales coverage for the coming years and for 2026 as well, obviously, and represents a 15% quarter-on-quarter increase as compared to the first quarter.

The average selling price of these presales is above the figure we saw before and is close to EUR 380,000. Basically, we've also started commercialization during the quarter, at the end of part of the quarter in some key areas like Los Cerros in Madrid, which, as you know, is one of our strategic developments where we have close to 2,000 units to be constructed and delivered in the future. Also in Murcia, where we have -- it is an area which is functioning really well at the beginning, and we have around 550 units in total.

And also in Lleida with a project of 240 units or 250 in total where we started selling Phase #1 also at the end of the period.

In terms of other key operational figures, our sales backlog stands at 2,900 units in total, representing EUR 1.1 billion in future revenues with an average selling price of around -- with an average price of around EUR 370,000 per unit. Also, our future deliveries are well covered and the ratios keep improving, basically with 94% of the deliveries of 2026 already sold, close to 80% of 2027 and basically 40% of 2028. This also with a high reliability of close to 80% in private contracts with more than 10% down payment.

We have around 3,400 units under construction. We've started 255 units in this first half of '26. And we plan to start around 1,800 units in the total of the year. So even if this figure may seem small, it is -- we are planning to basically start around the units that we've been delivering in the last couple of years by the end of the year.

In commercialization, we have about 5,300 units with a potential revenue of EUR 2 billion and a price per unit of around EUR 380,000. So we still keep seeing that on the backlog figures and future commercialization units, the selling price keeps improving. 55% is already presold. And plus we have another 2,000 active units in the design phase that will come into commercialization in the coming months.

In terms of land activity, we've had a strong land monetization period and the pipeline replenishment. In total, our P&L revenues in the first half of the year stands at EUR 38 million. The majority is corresponding to the authorization of a plot in Valdebebas in addition to other minor residential nonstrategic plots in non-core markets.

Additionally, we've also sold, as you may have seen in our announcement and in the press, the Puerto de Somport building -- office building that we delivered that we -- sorry, co-developed with Tishman Speyer, which will have EUR 7 million cash flow impact, but doesn't show in the P&L in the revenue line because it's actually accounted for in the in the equity method. We also have EUR 134 million in binding contracts, which will come into the P&L in the coming years, part of it in 2026 and part of it in 2027.

And additionally, the ongoing commercialization -- commercial development, sorry, in the Oria project with the new office that we are doing in a turnkey solution for the fund Atrea and the 2 projects of VITA that are not included in the above figures. In terms of land investment, on the other hand, we have signed 2 JVs with Santander Alternative Investments to develop 2 co-living projects in Valencia and in Seville with Metrovacesa holding 10% and the management of the project.

And we will continue to explore new co-investment opportunities with other partners in the year. Additionally, we've acquired project with 367 units in total in Granada for social housing. Diving a bit deeper in our commercial portfolio, we continue reducing our gap in this segment with EUR 283 million now left, which is around 13% of the total Metrovacesa gross asset value. In the Oria Innovation Campus project, to give you an update, the PBSA building with 585 rooms will be delivered in this quarter, in the third quarter of 2026.

The Flex-living building with 519 rooms, it's progressing adequately in construction and will be delivered in 2027. And finally, the office building -- buildings with 48,000 square meters of GLA in which we are doing a turnkey solution, initiated already the construction and we are already coming on -- coming up to the ground zero level in the structure. This represents our largest commercial development with over EUR 350 million in total investment.

And also, as I mentioned before, we've sold the Puerto de Somport building to the GMP REIT in the Spanish market. Moving on to Page #14. In the ESG arena, we continue implementing our ESG plan 2025, 2027, which focuses on climate change mitigation and basically, in this area, measurement and improvement on the carbon footprint of our developments. Also on energy efficiency, environmental impact, very focused on waste management improvement in all our projects. And basically, you can read our 2025 annual sustainability report that has a lot of detail on what we do on this area. And now I'll finish with the operational highlights, and I hand it to Borja, our CFO, for the financial overview.

Thank you, Jorge. Turning to our profit and loss account. We delivered a very strong first half of the year with revenues reaching EUR 316 million, up to 138% year-on-year, driven by higher residential deliveries and land sales. Residential revenues grew to EUR 280 million, while land sales contributed EUR 38 million. Importantly, profitability continued to improve Residential gross margin increased from 22% to above 27%, driving gross profit to EUR 75.5 million and EBITDA to EUR 49 million with an EBITDA margin of 15.6%. Despite EUR 80 million of mainly noncash impairments in certain conventional assets, we reported EUR 80 million of net profit and EUR 42 million recurring pretax profit, clearly reflecting the strength of the underlying residential business.

In terms of operating cash flow, cash generation was another key highlight. Gross operating cash flow reached around EUR 130 million in the first half, demonstrating a strong cash conversion of earnings into cash. Beyond EBITDA, cash generation benefits from land monetization, including approximately EUR 51 million from land embedded in deliveries and EUR 45 million of cash proceeds from land sales, while maintaining disciplined investment levels. The strong performance underpins our confidence in reiterating our guidance of more than EUR 200 million of gross operating cash flow for the year-end.

In the Slide 18, -- despite paying approximately EUR 137 million in dividends during the semester, our balance sheet remains exceptionally strong. Net debt stood at EUR 308 million, broadly stable versus year-end 2025. We ended June with EUR 160 million of cash, while gross debt decreased to EUR 393 million. Our LTV remained at 14.4%, comfortably below long-term target range to -- from 15% to 20%. In addition, we continue to enjoy significant financial flexibility with more than EUR 300 million of undrawn financing capacity and a syndicated facility with maturity at the end of 2029.

In Slide 19, finally, our asset base continues to create value. Gross asset value increased by 3.2% like-for-like, up to EUR 2.14 billion, supported by the performance of the residential portfolio. NAV stood at EUR 11.55 per share, importantly, after adjusting around EUR 1 per share dividend paid during the period. NAV increased by 2.6% compared with December 2025, demonstrating continued value creation despite significant shareholder remuneration. Overall, our portfolio remains highly resilient with a strong residential structure and NAV that continues to highlight the underlying value of the company. With that, let me hand over to Jorge for the closing remarks.

Thank you, Borja. So let me finish talking about the market. We see the market stabilizing at high levels with transactions remaining very healthy, over 700,000 total transactions in the last months despite a slower beginning of the year. Some volatility in construction costs, but still outpaced by house price increase, which in public figures has been quoted as 13% year-on-year on March 2026. A very solid performance on our side for the first half of the year with a more homogeneous kind of distribution of deliveries. We confirm our gross margin expansion, boosting EBITDA and net profit and with a solid presales coverage that provides the visibility not only for the deliveries of 2026, but also for the coming 2 other years, 2027 and 2028. And finally, we reiterate our 2026 guidance that if you remember, was a gross cash flow generation of above EUR 200 million with housing development deliveries in line with what we delivered in 2025 and with significant growth in land sales. And that would be all for today. Thank you very much.

Thank you, Jorge. We are now ready to begin the Q&A session.[Operator Instructions] -- our first question comes from Ignacio Dominguez, JB Capital.

Just one from my side on gross development margins. With gross development margin reaching 27% in the first half, could you provide more color on the sustainability of these margin levels? As we move into the second half, should we expect some normalization in margins due to product mix? Or do you believe full year '26 margins can remain close to current levels?

Ignacio, Jorge here. As I said, we stick to our guidance of mid-20s. Now mid-20s, you can either take it as 25% or a range of between 24% and 26%. If we take the range, I think we should be on the higher part of the range.

Okay. The next question is coming from the line of Christophe Chaput From ODDO BHF.

Congratulations for the results. Honestly, I've got the same question on gross margin. The second one was on your presales. Could you give us your monthly absorption rate that you experienced, let's say, on Q2?

Thank you very much, Jorge taking the question as well. Okay. So the gross margin has been already answered. In terms of the presales, we've had months between 2% and 2.5% on the way that we measure it that, as you know, is different from some other developers. Our average in the last 12 months or 24 months, I would say, has been around 2.5%. So we are in between that and 2%.

On that line, on the presales figures, you could consider it like a low figure. I would like to elaborate a little bit more. And -- some questions have come already offline, whether this is due to the market slowing down or not. And I would say that no, the answer is no, actually, even though that the market may have some impact. But the reality in our line is that we are doing, first of all, market margin optimization. As you've seen, our presales coverage is at 94% this year, close to 80% for next year.

So we only have to sell about 90 units this year and about 200-and-something units for next year to deliver around 1,800 units. So basically, we -- I'm not saying we need to slow down on sales, but we basically can maximize or optimize margins in those developments where we have a few units left to be delivered.

We've also had a couple of delays in commercialization starts of 2 key projects, one in Los Cerros here in Madrid. -- where we've actually started commercialization of our first project and the second one is coming very soon. Los Cerros is a huge development for us where sales will go really, really well in Madrid. And we started selling in the end of the second quarter due to the -- after the final approval of the project [indiscernible], the development project. And basically, this will drive more significant sales in the second part of the year.

And finally, we had some forced cancellations. So if you see the gross to net figure in sales, it may seem a little bit high, but in 3 projects, we actually did some cost reengineering in order to maintain the targeted gross margins as we had higher costs than initially planned. And that we talked to the clients, and we told them that we were making some changes in the projects. Some clients canceled. Those cancellations, by the way, have been already sold again, but we did have some forced cancellations.

And that actually drives that sales figure, those 3 reasons to a figure that may seem a little bit low, but it shouldn't be that way in the coming months.

We don't have any more questions from the conference call, and we will move on now to the questions submitted through the webcast platform. First question from one investor is saying the CEO has referred to moderation in transaction volumes in some areas. Can you comment which areas are affected and whether moderation is also impacting sales of new housing stock?

Well, I think in some areas, the -- what drives the slower market in some areas is basically at the end, the affordability ratio, what clients can pay. We don't see that in key markets like Madrid, Valencia, Barcelona or even Seville. And we do see some slowdown in markets where affordability ratio reaches something like 40%, something like that. Which markets is that? It may be, for example, in Terrassa, even though I wouldn't say that, as you know, Terrassa is a suburban area of Barcelona. But the reality is that we don't see that happening in all our projects in Terrassa. It's only in 1 out of 4.

So I wouldn't generalize completely that statement. But I think in general, the market, not just new housing stock, but also secondhand homes are seeing that slowdown that you see in the press, which, by the way, is a slowdown of 3% or something like that, which is not a significant figure. And that will -- that is happening in areas where the affordability ratio is reaching figures that is already hard for clients to actually pay for the units. So in those areas, what we will see, I think, is that the prices will not increase or will increase at a lower pace. But I don't think that volumes will or should decrease because the actual demand is there.

Okay. We have another question from an investor. This is about a technical accounting thing about any relevant changes in financial reporting as a result of IFRS 18 in the results of next year?

Well, we'll have to adjust the structure of our profit and loss account for the new regulation and that will -- we will adapt our financial statements according to the law next year. We are analyzing how we are going to change the structure, but with no changes in our internal procedures and our reporting.

Okay. Another question from investors. Can you give us more details about the number of construction starts in the year? What is your expectation for the end of the year? I think you have actually made a point earlier, but -- the question is coming from there.

Okay. I think I mentioned it. So the figure we -- we basically, for the year, we are planning to -- as I mentioned in the key operational data, we're planning to start around 1,800, which is units, which is in line with the deliveries of last year or this year. And some of the units have slipped -- some of the starts have slipped to the second part of the year. That's why the figure in the first half may seem a little weaker. The reason for this is related to license -- to the obtaining of the licenses. The reality is that almost in all the municipalities where we are at, it's taking us a little bit longer, 1 month or 2 months longer than last year or previous years in obtaining the license, which is sad, but it is the reality. But they are coming in the second half.

And therefore, we plan to start, as I said, around 1,800 or a little bit more units this year in line with our run rate. And this is not related at all to presales because in these projects, we have presales levels above of what is required to get financing for the projects.

Okay. We do not have any more further questions from either the webcast platform or the conference call. So this concludes Metrovacesa's first semester 2026 results presentation. Should you have any follow-up questions, the Investor Relations team will be pleased to assist you. We thank you very much for joining us today, and we look forward to speaking with you again in the future. Goodbye.

Hello. Good morning, and welcome to the full year 2025 results webcast from Metrovacesa. My name is Juan Carlos Calvo. I'm Director of Corporate Development and Investor Relations. And as usual, we have with us Jorge Perez de Leza, CEO of Metrovacesa; and Borja Tejada, Chief Financial Director.

We are going to present an overview of our operating activity and the financial results for the full year 2025. The slides of this presentation have been released to the market this morning, and they are available through the CNMV website as well as the company website. We have also sent it by e-mail to our usual distribution list for analysts and investors. [Operator Instructions]

Now we hand it over to our CEO to start the presentation. Please, Jorge.

Thank you, Juan Carlos, and good morning, everybody, and welcome to our full year results presentation. And I'm very happy to have you here to share what we consider an excellent set of results for the full year 2025.

Just as a summary, total revenues this year are close to EUR 710 million. EBITDA and net profit have reached a record figure with close to EUR 128 million and a 74% growth over last year and a net profit of almost EUR 57 million with a growth of 258%.

Our operating cash flow is well above the EUR 150 million guidance that we gave with a total of EUR 225 million. And our dividend for the year, as you already know, and paid in full was EUR 240 million, representing a 17% yield for the year.

Also, I think that looking forward, we are still surrounded by a market context where housing demand remains very solid and demand for commercial land keeps on improving as we will see later on in the presentation. And also our current presales backlog offers a very good visibility on our upcoming residential developments and land sales for the next 2, 3 years.

Moving into Page #7, I would like to highlight here probably focus on the prices, on the average prices of our units where we see that our deliveries this year were on average at EUR 375,000 per unit. But if we look at our backlog, we see that it's still a very strong number of EUR 360,000 per house. The units under commercialization are close to EUR 380,000. And therefore, I reiterate my previous statement that the backlog offers quite a good positive outlook for the next 2, 3 years coming forward.

Now moving on to Page 8. I give the floor back to Juan Carlos to give us a brief overview on the market.

Yes. Well, very quickly a few data. I mean the market in Spain was quite strong, both in terms of prices and volumes during last year. Prices accelerated according to the official statistics to a double-digit growth, 12.7% and the volume of transactions increased to over 700,000, which is the highest figure since the previous cycle. The main reason for these 2 parameters is the continued imbalance between supply and demand. And actually, we have already accumulated quite a few years of this imbalance. And just looking at the last 5 years alone, we have accumulated approximately 600,000 units of shortfall of supply according to the growth of household. So this continues to be the main driver behind the increase in prices as well as volumes.

It is true that in the last few months, we have seen some moderation in the growth rate and probably we will continue to see some moderation into next year, both in prices and volumes. Obviously, the prices in the extent that it is going higher, it is making it a little bit less affordable for some groups of the potential demand. But still, the outlook continues to be a continuation of a positive trend, perhaps more moderate than last year, but a continuation of a positive trend.

Back to Jorge.

Yes. Thank you, Juan Carlos. So moving on to more operational KPIs. In terms of residential deliveries, we delivered a total of 1,805 units with an average selling price of EUR 375,000 per home, driven by mix of products. And you can see that we've delivered some premium projects over the fourth quarter like Malaga Towers, the second Tower Vision, also the Mesena 80 project in Madrid as well as Serene Atalaya in Estepona in Malaga. But nevertheless, as I said before, if you look at the backlog, it's still quite strong in terms of average selling price going forward.

Probably more important is the gross margin in which we have raised our gross margin to -- development gross margin to a little bit more than 26%. And this is driven obviously by tailwinds in the market, but also to the strategy that we followed in the last 6 months of the year, as we mentioned on our previous calls, that was really optimizing margin and given the very good coverage of sales for the deliveries in the -- not only in 2025, but in the coming years, we were optimizing margin and therefore, selling a little bit less of units in the last part of the year in order to maximize the price and therefore, the margin. So good set of margin. And I think as we will mention later on, I think the mid-20s figure in terms of gross margin is something that we consider a good assumption for the coming years.

In terms of presales, moving on to the next page, we sold 1,635 units in the year with a strong fourth quarter in which we sold 434 with an average selling price, which is slightly higher than our backlog and also the deliveries. Again, this gives you a good picture of what's coming forward. And then an absorption rate of 2.5%, which is our average and where we would like to be in these operating metrics.

In terms of sales backlog, moving on to next page, we have just a little bit over 3,100 units in the backlog with an average selling price of 360,000 and with a very strong coverage ratio for our deliveries coming forward, standing at 89% in 2026, 66% in 2027 and 27% in 2028. So -- and then above -- sorry, around 80% of this backlog is actually formalized in private contracts with more than a 10% down payment.

In terms of construction, we have around 4,000 units under construction, including 851 units, which have already been completed, which means they have a certificate of final construction. And we started the construction of around 1,600 units in the year.

In commercialization, we have 5,200 units, again, with a potential revenue of EUR 2 billion and an average selling price of close to EUR 380,000. 60% is already presold. And then we have around 2,500 units, which are in the design phase and will come into commercialization in the next few months or over the year.

Moving into the next page, Isla Natura. I think the photo in 2022 and what you see in 2025 speaks by itself. This is a project where we have basically started from scratch. We launched over 1,800 units already, 820 have already been delivered across 13 developments, and we continue to deliver throughout the year and then in the coming year. Unfortunately, we are running out of units, but we have around 200 more to launch. And also, we have transformed some of the commercial land plots given the urgent measures approved by the regional government of Andalusia, we were able to transform some commercial land into protected housing, and we've launched around 300 protected -- additional protected units in the neighborhood.

We hope this to be a proof of what we can do as a strong operating company with a strong balance sheet, and we shall be able to replicate this success story in some of our big developments where we have such as Los Cerros, Seda-Papelera or Vinival or Benimaclet in Valencia coming forward.

Moving on to Page 13. In terms of Madrid, this is going to be a strong example of launches in 2026, so commercial launches in which in Los Cerros, we have in this development around 2,700 units. The final reallotment has been approved. And therefore, in the short term, we shall be able to start selling in this development in this area, where you know that in all the Southeast region of Madrid, the commercial performance is very, very strong given the lack of housing in Madrid.

Also in Valdecarros, where we have around 450 units and the final reallotment is expected in the mid of 2026 and urbanization works for Phase #1 are already 90% completed and Stage 2 and 3 are advancing quite strongly. So good prospect for our developments in Madrid in Los Cerros and in Valdecarros coming forward.

In terms of land activity, land sales in P&L stood at EUR 32 million, which actually was a little bit below what we expected given that one development -- or sorry, one land sale was actually skipped into the first quarter, which is Valdebebas and actually was signed yesterday. So this is done. And we have a very strong backlog of binding contracts coming in the next year, EUR 163 million in total, which are already signed in private contracts and will be basically -- will appear in the P&L as they are notarized in 2026 and 2027.

In terms of land acquisitions, we acquired around 600 units, as you know, following our top-up strategy of adding some units in order to be around in our strategy of around 2,000 units per year. And we acquired these units in core markets like Valencia, Valdecarros, Sabadell in Barcelona and Marbella in Malaga. And we will continue with our capital allocation policy of buying in selective approach. And also in some cases, we are now considering investment in partnerships with some players and funds that have actually approached us to codevelop with them in the BTS and flex-living segments. Again, something that will not be -- will be an add-on strategy to our core portfolio that will be coming as we transform the non-fully permitted land into fully permitted in the coming years.

In terms of the commercial portfolio in Page 15, very good news that came out in a press release at the end of the year in the sense that we signed a turnkey project for office development in the 2 land plots that were still pending for delivery in the ORIA Innovation Campus project with a price of EUR 200 million for a total of 48,000 square meters of GLA and a top-up development in terms of certifications. And these projects will be -- will start construction in the coming weeks and will be delivered at the beginning of 2029.

And I think it's good news because it's a very well-rounded mixed-use development for the area, having not only offices, but also, as you remember, the PBSA that will be delivered in 2026. We're just about to finalize construction in the next couple of months. Also the co-living that is coming in 2027 with Vita being an operator in both. And then this is -- the office deal will actually, as I mentioned, create a very pole attraction in the area. And again, will be an example of what we are able to deliver in big developments.

I also want to take the opportunity to give a short overview of where we are at in our commercial development as commercial portfolio, which, as you remember from the beginning, our idea here was to basically reduce our exposure by a value-add strategy that could mean sales of land or turnkey projects or JV developments.

We started with a total gross asset value of around EUR 700 million, and we are now at around EUR 350 million, but 50% of that is already actually presold and will be delivered and therefore, notarized in the next 2, 3 years. And so our exposure has greatly diminished.

The 49% that I mentioned that is already presold, you have here the breakdown is the ORIA offices as well as the other 2 developments, La City in Barcelona, where we signed a presale agreement to develop a flex living by a third party in that area, Monteburgos1, which is the land located next to our office, where we signed some presales agreements to develop retail and hotel. Valdebebas that I mentioned, we actually notarized yesterday. And then Loinsa 22@ district where we signed a presale agreement to sell the land.

Also just to finalize in Puerto de Somport office, which were the project that we developed a 20,000 square meter that we developed together with Tishman Speyer and where we own a 24% stake. At the end of the year, we had an 87% occupancy, and we are in advanced negotiations for an additional 10% take-up, so basically to have a full occupation in the next few months.

Finally, on our ESG, we continue with our ultimate objective, which is to be -- to position Metrovacesa as a sustainable and responsible developer, and we are advancing in a different set of measures that you can see here, not only on environmental, but also on our social and governance metrics.

With that, I finish with the operating set of results, and I hand it over to our CFO, Jorge for a financial review.

Thank you, Jorge. Let me start with the profit and loss summary. As Jorge mentioned, 2025 was a record year across all key metrics. Total revenues reached EUR 709 million, up 8% year-on-year, driven mainly by residential development, while land sales contributed EUR 32 million. Gross margin increased significantly to EUR 180 million with residential gross margin expanding to above 26%, reflecting a strong product mix and solid execution.

EBITDA amounted to EUR 128 million, representing an 18% EBITDA margin and 74% increase year-on-year. Net profit reached around EUR 57 million. And importantly, recurring pretax profit more than double to EUR 109 million, confirming that earnings growth is fundamentally operational and sustainable.

Moving to operating cash flow in Slide 20. Fiscal year 2025 cash generation was exceptionally strong. Gross operating cash flow reached more than EUR 225 million, significantly above our initial guidance over EUR 150 million. This performance was driven by EBITDA growth, optimal land monetization and efficient discipline of land investment. Cash generation clearly demonstrates that quality of earnings and the cash conversion capacity of our business model in a reality.

Turning to the net debt position in Slide 21. We closed the year with a total cash of EUR 200 million and net financial debt of EUR 300 million, improving versus last year despite the high dividend paid in 2025. Loan-to-value remains very stable at 13.5%, slightly below our long-term reference range of 15% to 20%. Potential liquidity is strong with more than EUR 300 million of undrawn committed facilities and the average cost of our debt stands at 5.5%. Overall, the company maintains a solid and resilient financial structure, providing flexibility to execute the business plan and sustained shareholder returns.

Finally, on asset valuation and NAV. Total GAV amounts [ EUR 2.25 billion ] at the end of the year. Net asset value stands at EUR 12.13 per share, representing like-for-like increase of 3.5% versus December 2024 adjusted for the dividend paid. The positive evolution is driven by residential assets, partially offset by more cautious valuation in commercial segment. This confirmed the underlying value of our portfolio and the strength of our residential-focused strategy.

Now I will hand over to Jorge with closing remarks.

Thank you, Borja. Moving on to Page #24. I would like to take a couple of minutes here to go over our evolution from 2018 until 2025, in which I think we are really showing our efforts to focus on dividends and a strategy driven by cash flow, given that we started with a very large land bank that at that point was not active, and then we started all the process of making it work. And I think our strategy is really paying off at the end.

In terms of GAV, what we see is that our current GAV of EUR 2.2 billion, the active GAV in terms of percentage has really increased. As I mentioned below -- before, our commercial GAV has diminished or decreased through a value-add divestment strategy. The key operating data, I think, speaks by itself with total launches of close to 16,000 units, sales of 13,000, deliveries of a little bit more than 10,000, land transformation from non-fully permitted to fully permitted and land sales as well. At the end, this results in more than close to EUR 900 million dividend already paid and obviously, respecting our policy of a payout of more than 80% and exactly in this case, 92% of the operating cash flow generated in the period. And we will obviously continue with this strategy going forward and with our focus on cash flow and dividends as well.

And to finalize on Page 25, I think as takeaways, I think, again, we are very happy to share this strong set of results for the year with revenue growth and gross margin expansion driving to a net record EBITDA and net profit, a significant increase in average selling price of deliveries for the year. And I think this is not only an effort of the fourth quarter where we can see some significant increase because of the product mix, but I think it's -- this is the result of a strategy of being very driven by IT and digitalization and improving our commercial funnels and then being able to make very quick decisions on a weekly basis in order to maximize the revenue of all our projects.

The solid presale coverage, as I mentioned before, with the high percentages of units sold on our coming deliveries for the next 3 years makes us be quite positive on the forecast as well as on the 165 million of land presales that will eventually come into notarization in the next couple of years.

Attractive dividends for the year, EUR 240 million with a 17% payout, which is probably one of the most attractive payouts in the -- not only in the industry, but in general, in the stock market in Spain. Our next dividend will be in May of 2026 with a figure to be announced in March as we have done in previous years.

And as I mentioned before, our solid outlook for the year makes us think that our gross cash flow generation will be above EUR 200 million with housing development deliveries of units similar to 2025. And finally, land sales with significant growth given the backlog of EUR 165 million plus additional deals that obviously will come in the year.

And with that, I conclude. Thank you very much for joining, and I hand it back to Juan Carlos now for Q&A.

Thank you, Jorge. Yes, we are now ready to start the question-and-answer session. We will start taking questions from our participants in the conference call. [Operator Instructions] Okay. The first question comes from the line of Mariano Miguel from Banco Santander.

I have 2, if I may. So in Q4, your gross development margin stood closer to 30%. You were guiding for higher margins, but I would say that not as high as this one. I was wondering if in the next 2 years, we should expect it to remain closer to 30% or more, towards 25% that I would say is what I was more expecting.

And then second, on dividends, you have distributed more than 100% of your gross operating cash flow this year. Again, how should we look into the potential dividend payout in 2026 as your cash flow is going to be above EUR 200 million?

And then one last one, please. On land acquisition, if you could please give us some color on your expectations for next year as I believe part of your non-fully permitted land is going to be transformed. So I don't know if that might affect that potential policy in terms of land acquisition. And that's all on my side.

Thank you, Mariano. So I will -- Jorge here will take the questions. I think the Q4 exceptional gross margins are mainly driven by the product mix. And coming, we delivered Malaga Towers, the second tower vision. We also delivered, I think, a project in Madrid, Mesena and then also a couple of other projects in Costa del Sol. Not only that, I mean, as I mentioned before, I think it's a matter of given the coverage that we started with at the beginning of the year, we have to basically sell 20%, 25% of the deliveries in the year, and we've been very pushy and very, I think, surgically working on how to get the best contacts to sell at 25% in order to maximize pricing. And it sounds -- it may sound a little kind of, I don't know what word to use, but the reality is that we are using some artificial intelligence model in order to drive our -- to get our contacts and to drive them into final sales that I think are playing an important role in this last sales of each development where you're really focusing on getting the best clients at the highest price.

Going forward, I would love to see that we're going to be close to 30%, but not, I'm not optimistic. I think that 24% is a reason, I would say, a more accurate figure. And in some quarters, you may see 24% because of the mix and in some other quarters, you will see 26%, 27% because of mix. But overall, for the year, if I was -- if I had to put a figure in the Excel, I think between 24% and 26% would be a great figure.

Dividend, yes, higher than 100%. I think as I've always mentioned, I think we are cash flow driven. We are dividend driven. And we understand that the market is -- likes dividends at this point. And we are very proactive to dividends. And that's why we paid more than 100% of the cash flow generated in the year.

Is that going to be the norm coming forward? No, I would say that our policy still stands at paying at a cash payment of 80% of the -- higher than 80% of the cash flow generated. And obviously, it's actually the Board that has to decide this and then propose it to the -- in the Annual Shareholders Meeting. And if we see a positive forecast, we see that the LTV stands at a reasonable figure, et cetera. I think we will give priority to dividends rather than anything else.

Land acquisitions, I think our strategy, again, keeps to be the same, which is a top-up strategy in order to complement the projects that are -- or the launches that are coming from the land transformed into fully permitted. And that means that in terms of acquisitions, we are talking about 500, 600 units per year in order to do that top-up. It is true that if we find some attractive land investments that are bigger than that, we will go -- we will try to go for them probably with co-investment partners in that sense so that we have, again, a combination of investment, but also a focus on dividends. And basically, that will be the case. So I don't -- we have to see how also the land market turns out to be in 2026. I think there could be less people buying and there could be better opportunities, and we are ready to go for those opportunities. Again, if they are large, we will go with co-investment so that we keep a good balance between dividend and investment of our own equity.

Thank you. We don't have more questions from the audio conference call. So we will now read questions received on the webcast platform. We have several -- actually 3 analysts asking mainly on the same point, which is gross margin. A question from Javier analyst from Renta Cuarto, Julian [indiscernible] analyst from Kepler Cheuvreux and Ignacio Dominguez analyst on JB Capital, essentially, the 3 are asking again about the gross margin. If you can say what was behind the increase in gross margins in Q4 and whether this could be -- what could be the expectation for gross margin going forward? I mean the way it has been answered already, but if you want to add anything?

Yes. I mean I would say that in order to reiterate myself, I mean, in 2026, the -- we've already sold 89%. So we have 11% of the units left to be sold, and we will, again, apply most of our knowledge and technology in order to maximize the prices on that. That should move the needle a lot. We, with 11%, not that much, but we are very comfortable in saying that the 25% is good. Obviously, in 2027, you have a little bit more room because we've presold 66%. So it means 34% is still there to be sold. And then in '27 as well more figures.

We do see sales growth or price growth still coming in the next 2 years. But as I -- as Juan Carlos mentioned, probably not -- we're not talking about figures in 10%, but rather closer to 5% and that should -- may move the needle upwards in 2027 and 2028. I think in 2026, the game is already almost done. With 11% to go, we will try to surpass that 25% gross margin, but I think we cannot expect 30%.

Okay. Thank you. Also Julian from Kepler. He was also asking about the land investment pipeline. How does it look? Are there any good opportunities in Tier 1 cities with good returns, in which regions or areas?

I think the land market is not easy right now, especially in Tier 1 markets where for 2 reasons. First of all, is that there's no land. I mean there's very little fully permitted land. And then there's 2 ways to source that land. And one of them is through tenders, public tenders, meaning that they are open for everybody. And those are, I think, extremely competitive, and we made -- we did source in the past some good deals through that source. Going forward, I think it's going to be difficult because probably price expectations are too high.

And then I think we are quite good in working at bilateral transactions. So actually identifying land that is fully permitted or almost fully permitted with very few things to solve before being able to launch in 1 year or less. And in those bilateral transactions is where we are able to find land that is in the high teens of IRRs and with reasonable -- with gross margins that are in line with our strategy. If we don't find those, we just will not buy. I mean I think there is no -- with the land bank that we have in hand, we have no pressure to be buying thousands of units every year. As I mentioned before, our strategy is a top-up strategy, and then we will do it with opportunities that fit our return expectations. And I can say that in the land that we acquired in the last 2, 3 years, I think we are in all of them beating our underwriting at the time of purchase. And so they are performing extremely well, and we just don't want to jeopardize that experience. And so we will just focus on good deals.

Okay. We have an additional question from one investor, in a way related to investments as well, but with a focus on the construction costs. Given the increase in construction costs, do you think there is still affordable land plots in the city peripheries for you to be able to renovate your land portfolio at a reasonable price?

Trying to understand the question. So let me take it in part. I think to talk about construction costs, yes, we have -- we are experiencing some construction costs. Nevertheless, the price increases actually are outweighing the increase in construction costs and hence, an increase in the margins. So yes, we are seeing construction costs, but sales are growing at a slightly faster pace. And so therefore, we don't see erosion in margins. And I think going forward, even with sales increases being more moderate, I think we're still not thinking about margin erosion. Thinking about affordable land plots, I'm not sure if that means land for affordable housing or land that is at good price in the peripheries.

Well, and then to renovate our land portfolio, well, we are still not in need to renovate. I mean we have a large enough land portfolio. And as I mentioned before, so that we only do acquisitions that are with good returns in order to top up to be in a run rate of between -- as you see in the last figures between 1,700 and 2,000 units, something like that. So we are not at a stage in which we need to renovate our full portfolio. So we will do acquisitions just on a very specific basis and with good returns. And then in a few years down the road, it is when we will have to buy more aggressively. Good opportunities, I would say there are, but scarce. So that will be my conclusion.

Thank you. One additional question from an investor. It's about the land sales in private track. You have, at the end of the year, EUR 163 million of backlog in land sales. Can you give us an estimate of the timing of those -- of the formalization of these landscapes?

Yes, I mean, I could be super specific, but always one deal may skip 1 year or whatever. But I think it would be reasonable to say that something slightly above 50% will be in 2026 and then the remaining in 2027.

Thank you. It seems that we don't have any more questions on the webcast or the conference call. So with that, we will conclude our presentation of Metrovacesa full year results 2025. The Investor Relations team will be available to take any follow-up questions that you may have as usual. And we thank you for your participation, and we look forward to meeting you again next time. Thank you, and goodbye.