Cairn’s housing output expected to rise 30pc this year

Cairn’s total housing output is expected to grow by nearly 30pc in 2024, according to a trading update from the housebuilder before its AGM yesterday.

The company expects to complete 2,200 new homes this year.

It also reported that its current total closed and forward order book has a net sales value of more than €1.05bn.

The order book includes more than 2,750 new homes, Over 1,000 of these units will be delivered next year and beyond, the company reported.

Cairn pointed to the “exceptionally high” demand backdrop for these homes, driven by state supports, a more favourable mortgage market, limited supply and its focus on first-time buyers.

Cairn has also agreed commercial terms with an Irish university to deliver 500 beds in a development located beside the campus.

This follows a new government initiative with long-term funding to boost the supply of affordable student housing.

It has also been granted planning permission for around 1,500 new homes through the Largescale Residential Development (LRD) and Strategic Development Zones (SDZ) planning processes.

Cairn said its first three forward fund transactions with a number of different state-supported counterparties are expected to deliver almost 1,300 social and affordable new homes.

Parkside in Dublin 13 is expected to close in the short term, with 368 new homes available at this site. The other two sites are expected to be ready in the second half of the year.

Cairn reaffirmed its guidance for 2024 and expects to deliver 2,200 units this year. Operating profit is anticipated to be around €145m. Last year, Cairn recorded an operating profit of €113.4m.

“We are pleased that our housing output will grow by nearly 30pc this year and our forward order book of in excess of €1bn is a testament to the exceptional demand for our homes,” chief executive Michael Stanley said.

“What is equally pleasing is that the broader industry is ramping up completions and government initiatives are working.”

Davy analyst Colin Sheridan wrote in a note to investors that the “extent of visibility” provided in the order book provides a high level of confidence in company forecasts. Revenues rose 8pc to €666.8m last year as the house builder delivered a record 1,741 new home sales.