Home builder Glenveagh's forward order book rises to €963m

The housebuilder pointed to a further increase in demand for housing here.

Glenveagh now expects to deliver over 2,700 new homes in 2024.

Around 1,440 suburban units are either sold, signed or reserved for 2024, rising from 1,106 units at the end of February this year.

It reported that demand in its suburban business division was driven by a “durable” domestic economy, the Government’s Housing for All initiative and ongoing undersupply.

The company also expects to deliver 650 urban units this year, with a commercial terms agreement in place for a forward fund transaction at one of Glenveagh’s urban developments.

Construction is also ongoing at two housing developments which are built in partnership with State entities or public bodies. Discussions are ongoing for a third partnership agreement.

Planning permission has been granted for more than 1,000 units so far this year, with Glenveagh on track to lodge over 2,000 planning applications in 2024.

The company expects earnings per share (EPS) of around 17 cent this year. Last year, Glenveagh reported EPS of 8 cent.

“We’ve had a strong start to 2024, with our business benefiting from favourable market conditions and greater scale,” chief executive Stephen Garvey said.

“It is now clear that the Government’s targeted and effective initiatives are having the desired effect on industry performance and output,” he added, pointing to annual completions of around 33,000 last year, up 55pc since 2019.

He also pointed to the 63pc rise in commencements in the first quarter of 2024.

“The review of the national planning framework needs to provide a housing target that accurately reflects current and future population requirements, a target that is designed for viable and desirable homes in locations where there is demand,” Mr Garvey said.

Goodbody analyst Shane Carberry said it was a “solid trading update”.

“Whilst there is still some work to do in terms of executing further deals on the urban side of the business, clear progress has been made with the group agreeing ‘commercial terms’ for another forward fund transaction,” he wrote in a note.

"With the group re-iterating its FY24 guidance, it will give the market confidence that the pipeline for further forward fund transactions remains healthy,”