9M 2018 RESULTS

Quabit closes the year's third quarter with net profit of 1.1 million euros

At 30 September, its residential portfolio totals 3,724 dwellings with an estimated turnover of 774 million euros. Since its growth plan started on 2017, Quabit has invested almost 200 million in residential land for the construction of 4,821 dwellings, which, together with land in portfolio, signifies sufficient land to reach over 75% of the targets of its Business Plan.

Madrid. November 15th, 2018.- Up to 30 September 2018, Quabit Inmobiliaria has boosted the visibility o its Business Plan 2017–2022 with the acquisition of new land and its achievement of the pre-sales landmarks, launch of new projects and developments under construction, all of which are key variables to attain the delivery targets for the years 2018 and 2019 and the generation of operating profit.

The company chaired by Félix Abánades has closed land operations during the first nine months of the year to the value of 32 million euros with 108,795 buildable square metres. In all, since its growth plan started on 2017, Quabit has invested almost 200 million in residential land for the construction of 4,821 dwellings, which, together with land in portfolio, signifies sufficient land to reach over 75% of the targets of its Business Plan.

Following these operations, Quabit has consolidated its high-quality land bank to have 1.1. million buildable square metres on which to construct some 8,800 dwellings.

Thus, Quabit moves towards its objective of becoming one of the benchmarks of the development business in Spain. In 2018, ten new projects were launched, bringing the number of developments at different stages of execution to 50. In total, during 2018 Quabit's residential portfolio has increased by 1,173 units.

At 30 September, its residential portfolio totals 3,724 dwellings with an estimated turnover of 774 million euros, which will be reflected in the income statement as deliveries progress between this year and 2019.

The company has 140 units for delivery and will see out 2018 with a total of 215 units, which is the delivery target of the Business Plan for this year. In 2019, this figure will approach almost a thousand registered dwellings up to a cruise speed of 3,000 deliveries/year in 2022.

Additionally, in 2018 work has commenced on 10 developments, bringing the current developments under construction up to 13 that together total 885 units. Current developments at the delivery and construction stage total 1,061 units.

The evolution of the pace of its marketing also runs parallel to the performance of Quabit’s business plan. In this respect, the positive evolution of sales over the first nine months of the year have produced a pre-sales portfolio of 1,037 dwellings with a turnover of 223 million euros.

Despite investments and due to the cash capital increase of 63 million euros that concluded last May with excess demand, the net financial debt has been reduced by 2%, since 31 December to 214 million euros.

In keeping with the above, turnover increased by 409% with a positive effect on EBITDA (+106.1%), although the improvement of the latter is chiefly due to income recognised in debt remissions.

At the same time, net profits are up 1.1 million euros, with a 114% increase against the profit for the third quarter of the previous year as a result of the improved EBITDA and positive variation in deferred taxes in the sum of 5 million euros.

In addition, debt remissions pending (42.9 million euros) and the tax credits pending recognition (132.1 million euros) are two major value levers that have the potential of generating profits in the future.