Cairn Homes Announces Share Buyback Program, Dividend DeclarationCairn Homes Announces Share Buyback Program, Dividend Declaration Irish housebuilder Cairn Homes has unveiled its plans to: * Carry out a €45 million share buyback program * Declare an interim dividend of 3.8 cents per share These announcements will be finalized when the company releases its interim results on September 4. Share Buyback Details The share buyback program consists of a new €40 million plan and the remaining €5 million from a previous program. The program commenced on the same day as the announcement. Financial Performance In the first half of 2024, Cairn Homes sold 894 units, resulting in €365 million in revenue. This represents a 66% increase compared to the same period in the previous year. Future Growth Cairn Homes has secured a closed and future order book of approximately 3,100 new homes, with a total net sales value of €1.2 billion. Partnerships and Funding The company has been included in the State’s Land Development Agency’s partnership framework panel for Project Tosaigh 2, which aims to deliver 5,000 affordable homes. Additionally, Home Building Finance Ireland has been added as a fourth lender to Cairn Homes’ €327.5 million sustainability-linked syndicate facility. Full-Year Guidance The company maintained its full-year guidance of: * 2,200 units to be sold * Operating profit of €145 million * Return on equity of 15% Executive Commentary Chief Executive Michael Stanley highlighted the strong sales season for first-time buyers, contributing to the growing order book. He also addressed concerns about the rental market, emphasizing the need for increased support for the development of new rental apartments.
Irish listed housebuilder Cairn Homes has said it plans a €45 million share buyback programme and will declare an interim dividend of 3.8 cents per ordinary share when it reports interim results on September 4.
The share buybacks include a new €40 million plan and the remaining €5 million from a program from last year. The program starts today.
Cairn reported that it closed 894 units sold, generating revenue of €365 million in the first half of 2024, a 66 percent increase in revenue compared to the previous year.
The closed and future order book has grown to approximately 3,100 new homes with a net sales value of almost €1.2 billion.
Cairn also noted that the State’s Land Development Agency had included it in its housebuilder partnership framework panel for Project Tosaigh 2, which aims to deliver 5,000 affordable homes in the short term. And that it had added a fourth lender, Home Building Finance Ireland, to its increased €327.5 million sustainability-linked syndicate facility.
The company confirmed its full-year guidance: 2,200 units, an operating profit of €145 million and a return on equity of 15 percent.
Commenting on the H1 2024 trading update, Chief Executive Michael Stanley said: “Cairn has had a very strong spring sales season for first-time buyers, which has contributed to our order book of over 3,000 homes. We will grow our output by 30 per cent this year and are investing significantly in 10 new first-time buyers, including eight in the second half of 2024.
“The current poor health of the rental market may continue to pose a greater challenge to our economy and growing population. In recent years, over 70,000 homes previously available for private rent have become unavailable, the majority of which have been purchased by homebuyers from smaller landlords exiting the market.
“Private sector financed replacement stock, particularly apartments in urban areas, is very low and as a result many of Ireland’s young and fully employed population are facing a shrinking and illiquid rental market.”
Mr Stanley noted that there is “stronger support” from government for the development of new rental apartments, which he said “could significantly boost the delivery of affordable and private apartment developments at scale for both ownership and rental”.
