"Airplane" (MOEX: SMLT) — one of the largest Russian developers, which builds its real estate in Moscow and St. Petersburg. It has the largest land bank in the industry.
At the end of January, Samolet published operating results for 2021, which, in comparison with the data of 2020, increased by more than 100%. Key Figures:
- the volume of real estate sales in 2021 compared to 2020 increased by 112% from 59.7 billion rubles and 489.4 thousand sq. m to 126.4 billion rubles and 804.6 thousand square meters. m;
- real estate sales volume, taking into account the results of the company "SPb Renovation", which was acquired in December 2021 and will be consolidated under IFRS with 1 January 2022, amounted to 139.2 billion rubles and 896.8 thousand square meters. m;
- cash receipts to Samolet's accounts increased by 103% up to 119.3 billion rubles;
- the total area of real estate put up for sale increased by 18% from 1082 thousand sq. m to 1322 thousand sq. m.
Operational results
The main activity of Samolet is connected with the construction of residential real estate. The company controls the full life cycle of its projects, starting with the purchase of land and ending with the sale of finished objects. Besides, it develops related business areas: Samolet+ real estate services online platform, management company, commercial and rental real estate funds, development of projects in all segments throughout Russia, IJS, resort property and others.
The construction company showed impressive growth in the fourth quarter, which year on year increased by more than 100%. The main reasons for such phenomenal results are the accelerated pace of commissioning of new real estate and strong demand from the population..
New sales in the last quarter of 2021 compared to the fourth quarter of 2020 increased: in quantitative terms per 117% from 138.042 to 299.009 thousand sq. m, in monetary terms for 161% from 18.549 to 48.335 billion rubles. The share of mortgages in total sales reached a new record high in 79%.
Main corporate events of "Airplane", occurred in the fourth quarter of 2021:
- Moscow Exchange transfers shares of Samolet Group to the first level quotation list.
- The developer held the first Investor Day — Samolet Big Day, where the management presented a new development strategy for the company.
- A deal was closed to increase the share of Samolet Group in SPb Renovation to 100%.
- Samolet Group became a co-owner and strategic partner of the network of real estate agencies Perspektiva 24.
- The NKR Agency upgraded the credit rating of Samolet group to A.ru with a stable outlook.
Main operating indicators of "Airplane"
| 4к2020 | 4к2021 | The change | 2020 | 2021 | The change | |
|---|---|---|---|---|---|---|
| New sales, thousand m2 | 138,042 | 299,009 | 117% | 489,363 | 804,592 | 64% |
| New sales, billion rubles | 18,549 | 48,335 | 161% | 59,694 | 126,383 | 112% |
| Cash receipts, billion rubles | 18,901 | 47,364 | 151% | 58,773 | 119,274 | 103% |
| Average price per m², thousand rubles | 134 | 162 | 21% | — | — | — |
| Mortgage share | — | — | — | 73% | 79% | 6 P. P. |
| Commissioning, thousand m2 | — | — | — | 235,892 | 701,1 | 297% |
Sales dynamics
| In quantitative terms, thousand m2 | In monetary terms, billion rubles | |
|---|---|---|
| 1к2020 | 127 | 13,9 |
| 2к2020 | 100,6 | 11,4 |
| 3к2020 | 123,7 | 15,9 |
| 4к2020 | 138 | 18,5 |
| 1к2021 | 126 | 18,4 |
| 2к2021 | 167 | 26,5 |
| 3к2021 | 212 | 33 |
| 4к2021 | 299 | 48,3 |
Price dynamics, average price per month, thousand rubles
| 1к2020 | 110 |
| 2к2020 | 113 |
| 3к2020 | 131 |
| 4к2020 | 134 |
| 1к2021 | 148 |
| 2к2021 | 159 |
| 3к2021 | 156 |
| 4к2021 | 162 |
110
Financial indicators and forecast
Together with the operating results, the management of the Samolet group also disclosed some financial indicators of the construction company for 2021, and also updated its forecast until 2024. Key financial results of the Russian developer:
- revenue in the second half of 2021 increased by 245% from 34.4 to 84.3 billion rubles. Considering the results of the purchased "SPb Renovation", then sales skyrocketed 283% up to 97.5 billion rubles;
- revenue for the whole of 2021 compared to 2020 increased by 113% up to 131 billion rubles, exceeding the company's original plan by 19%. If we take into account the data of "SPb Renovation", then sales amounted to about 144.2 billion rubles, growth relative to planned indicators — 31%;
- EBITDA in the second half of 2021 increased by 240% up to 16.1 billion rubles, taking into account "SPb Renovation" - on 292% up to 19.6 billion rubles;
- EBITDA for the whole of 2021 compared to 2020 increased by 136% up to 28.5 billion rubles, growth relative to the plan - 27%. Taking into account "SPb Renovation" - on 163% up to 32 billion rubles, growth relative to the plan - 43%.
Samolet management forecast for 2021-2024
| Sales, thousand m2 | Sales, billion rubles | EBITDA, billion rubles | |
|---|---|---|---|
| 2021 | 805 | 131 | 29 |
| 2022 | 1500 | 240 | 65 |
| 2023 | 2500 | 350 | 110 |
| 2024 | 3200 | 500 | 170 |
Profit distribution
In October 2020, Samolet Group management approved a new dividend policy, which should provide a flexible scheme of payments to shareholders along with financial stability. Developer allocation ratios:
- if net debt /adjusted EBITDA is less than 1, then the payment goes from 50% net profit of the previous financial period under IFRS;
- if the net debt/adjusted EBITDA ratio is between 1 to 2, then no less 33% net profit;
- the minimum amount of dividends for any debt load is 5 billion rubles. Annual payment for 1 share - 82 R.
Seeing a doubling of business growth in the past year, the board of directors decided not to stand aside and increased its dividend payments in the same proportion. If in 2021 the company distributed two identical payments to 41 Р на 1 share, then in 2022 investors will receive two dividends on 82 R each.
Approximate payment date - summer and autumn 2022. The total dividend yield of Samolet for 2022 is 3,6%.
In addition to dividends, "Airplane" also approved a buyback to motivate its management, so that the developer can continue to maintain high business performance. During 2022, the company plans to buy back up to 500,000 of its shares for up to RUB 3 billion, taking into account the current capitalization - 280 billion rubles - this implies ~ 1% profitability.
What's the bottom line?
Samolet demonstrated record operating results for the Russian market in 2021: sales increased by 112%, revenue — on 113%, EBITDA - on 136%, and the company does not intend to stop there.
Management has set itself an extremely ambitious goal for the next two years.: the main indicators of the developer should double annually due to the development of the largest land bank in the industry, development of a technological service platform and other new business areas.
