Nexity: will enjoy a new source of growth

In the list of largest increases in the SBF 120 index, the action Nexity takes more than 2% on the Paris stock Exchange.

Whether promoting residential remains the core business of Nexity, the number of its sector in France, the group can avail itself of other assets : real estate management services related, promotion for the companies, and soon the residences of senior citizens with services, with Ægide-Domitys.

What are the latest announcements of the group chaired by Alain Dinin ? On 25 April, Nexity has reported a CA ‘particular’ in the first quarter, an increase of 7% to 603 million euros, with an increase in bookings of residential 3% in volume and 9% in value.

The CA ‘company’, a sort of relay of growth (with the branch Client community, such as Century 21 France, Guy Hiccup, and real estate management), tassait of 12% to $ 85 million, but the commands are the inputs : the potential of activity has taken off of 54% between end-December and end-march, reaching € 2.4 billion.

The management has therefore without difficulty confirmed the forecast, which include, in 2018 an increase of the order of 10% CA as EBITDA, and an increase in the market share of Nexity in a residential market French dip. And, of course, that a dividend of 2018 at least equivalent to that of 2017, or 2.50 euros.

Yesterday, the group announced that it had exercised the option to take control of Ægide-Domitys, going from 45.1% (the level at which it was climbed in the past year) to 63.1% of the units. Specialist homes services for seniors, Ægide-Domitys will enable Nexity to diversify in the direction of ‘the grey gold’, following a trend very much in vogue in his area. Nexity is going to consolidate by the global integration of this company managing 80 residences that in 2017 achieved a turnover of 345 million euros.

This, therefore, Nexity has, somehow, a third relay of growth peripheral to the promotion residential. And a relay will be significant, since the turnover of the group was in 2017 of € 3.5 billion.

A beautiful operation, according to the analysts of Oddo BHF : ‘from a strategic point of view and financially, this is, to our eyes, an opportunity : it allows Nexity to hold leadership positions within a French market of residences for seniors to provide non-high-growth’, greet a research note.

The analysts evaluate the market share of Ægide-Domitys to 21%, which is by far the number one. This sector, representing about 80,000 units per year, is expected to show an annual growth of 10%, and Aegide-Domitys seems to do much better, compute Oddo BHF. All for an investment of an additional a priori modest, although it is not revealed.

To follow on the agenda of Nexity : in addition to the agm which is taking place today, the investor day on 19 June, and then the half-yearly accounts, expected on July 25.

EG

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