Nexity shares fell sharply on the Paris stock exchange on Thursday, after the company decided to step up its adaptation measures in response to the "unprecedented" crisis currently affecting its sector.
In a press release published last night, the property developer explains that the continuing deterioration of the real estate market is imposing a "new deal", to which it plans to adapt in an "accelerated" way in 2024.
In particular, the group explains that it has decided to initiate an information-consultation process in the coming weeks with a view to implementing a job-saving plan, which will lead it to suspend the dividend in respect of 2023.
Following annual results for 2023 in line with targets, Nexity also warns that 2024 will mark a financial 'low point' in terms of operating income.
Given the deterioration in profitability in 2024, the generation of free cash flow (FCF) will remain very weak, so that the current financial year will remain a year of transition", warns Oddo.
The research firm has therefore renewed its "neutral" opinion on the share, with a price target reduced from 17.1 to 15 euros.
Nexity asserts, however, that its reorganization should enable a rebound in 2025, which should translate into improved profitability.
On the stock market, Nexity's share price was nonetheless feeling the pinch, tumbling 22% mid-morning Thursday, the second biggest drop on the SBF 120 index behind Euroapi (-50%).
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A leading integrated player in French real estate, Nexity covers the full range of real estate sales and services offered to individuals, businesses, institutional investors, and local communities, accompanying them throughout the real estate process. Net sales break down by activity as follows:
- sale of new homes (68.9%). The group is also involved in building land allotment and urban regeneration activities (Villes & Projets);
- real estate management services (20.4%): residential property management, student residence management, consulting and real estate transaction services (for individuals, businesses, and investors), network marketing of real estate leasing investment products, management, promotion, and development of real estate franchise networks, etc.;
primarily activities related to urban renewal (Cities & Projects);
- sale of commercial real estate properties (10.7%): sales of office buildings, skyscrapers, commercial complexes, logistics platforms, businesses and hotels.
France accounts for 98.6% of net sales.
NEXITY 
