Vistry Group Shares Up 29% YTD – Strikes Deals to Deliver 1,000 Mixed-Tenure Homes

In news today, housebuilder Vistry Group said that it has agreed two deals with Homes England to deliver 1,000 mixed-tenure homes. Vistry Group share price (LON: VTY) has reacted positively to the news, and is up 0.94% through the early part of the session.

Looking back on the VTY stock so far this year shows a very strong performance, climbing over 29%. Over a longer term, the last 12 months has also been kind to Vistry shareholders, with more than 50% growth reflecting the market's positive response to the company's strong financial performance and operational success.

With this in mind, news that continues to push positive is likely to be well received by markets, and this announcement from Vistry Group today seems to fit that bill.

Vistry Group Deals With Homes England Strengthen Partnership

Homes England has appointed Vistry to deliver the regeneration of City Hospital, which has outline planning permission for 750 homes. More than 50% of those homes will be affordable or private rent tenures, with the remaining homes for open market sale. 

The site will also have more than 8,000 square feet reserved for commercial and community space.

Meanwhile, in the second partnership deal in Hardingstone, Northamptonshire, Vistry will deliver 250 mixed tenure homes with more than 50% presold. The site is another previously owned by Homes England and has outline planning permission.

“These deals further evidence the benefit of our long-term strategic partnership with Homes England, enabling the Group to deliver a significant number of mixed tenure homes in the Midlands,” said Greg Fitzgerald, Chief Executive of Vistry Group. “Furthermore, the unique capabilities of Vistry Works will allow us to utilise timber frame manufacturing at scale across both sites, speeding up housing delivery whilst reducing carbon emissions.”

Furthermore, the decision to complete a £55 million share buyback, along with plans for a £100 million buyback in April, demonstrates the company's commitment to enhancing shareholder value. 

Looking ahead, Vistry Group is optimistic about its future prospects, expressing confidence in delivering strong growth in completions in 2024, targeting in excess of 17,500 units, compared with 16,118 homes built a year ago. 

The market has responded favourably to Vistry Group's strong financial performance and future growth projections.

In March, Vistry was upgraded to Sector Perform from Underperform at RBC Capital with a price target of 1,400p, up from 825p. The bank said Vistry's asset-light model works best on large multi-phase public sector-owned sites. However, he also acknowledged it can work equally as well on smaller sites purchased in the open market.