We once again outperformed both the Mexican economy at large and our industry, with a 10.3% growth in revenues and a 22.3% advance in net earnings.
Fundación ARA celebrated 10 years of committed work for Mexico’s most disadvantaged communities. Over the past decade we built 25,828 homes under the “Alianzas que Construyen” (Alliances that Build) initiative.
For the tenth year in a row, Consorcio ARA received the Socially Responsible Enterprise distinction from the Mexican Center for Philanthropy (CEMEFI).
We proved that our strategy of building strong foundations with a long-term vision was the right one, because it brought us back to the path of healthy growth and bolstered our leadership of the Mexican housing industry.
In 2014, we generated positive Free Cash Flow to the Firm totaling $864 million pesos, the highest in ARA’s history.
ARA’s CEO Germán Ahumada Russek appeared on the cover of Forbes Mexico magazine in the April/May2014 edition, under the heading “The homebuilder still standing.” The article profiled Mr. Ahumada as the new industry leader, with a company operating according to a cautious style and a long-term vision.
In a very difficult year for the public housing industry, our habitual prudence and our firm intention of being a high-value company with modest, profit-focused growth, proved to be the right strategies, enabling us to weather the headwinds and come out stronger.
Consorcio ARA earned the “Project of the Year” award in the “Housing Development” category, in the 10th year of this distinction, which is given by Grupo Expansión. The winning development was the Dream Lagoons Foresta, located in Metepec, Mexico State.
We celebrate our 35th anniversary!
This was the first year we published an Annual Sustainability Report according to the guidelines of the Global Reporting Initiative (GRI). Through that report, we communicate our economic, environment and social performance.
It was also the first year we incorporated International Financial Reporting Standards (IFRS) into our reports, to be sure we were speaking the same accounting language as the rest of the global equity market.
In October 2012, we established a joint venture in which ARA would offer high-end homes overlooking natural-looking man-made lagoons, a project called ARA Dream Lagoons, with a technology patented in 150 countries. This represents Consorcio ARA’s greatest contribution to the housing industry. The lagoons are built according to the principles of sustainability, and provide for the capture, treatment and reuse of water, while providing the perfect spot for fresh air recreation.
Consorcio ARA was awarded the National Housing Prize 2011 in the Sustainable Urban Development category. The awarded project was “INTEGRARA IZTACALCO”. The prize was given on the basis of urban integration, design, construction, and the efficient use of natural resources and its incorporation of environmentally-friendly technologies and handicap-accessible features.
We opened our seventh shopping mall, Plaza Centella in Mexico State, a project that added 13,200m2 in leasable area to our portfolio, bringing the total to 184,000 m2 of gross leasable area (GLA).
In October 2010, ARA signed a joint venture agreement to develop a unique and innovative concept offering high-end residences situated at the edge of man-made lagoons with a natural appearance, extending over 20,000-60,000 m2.
We opened our sixth shopping mall--Plaza Cañada Huehuetoca--under a joint venture agreement with Mexico Retail Properties, another of Mexico’s leading shopping center developers. With this new mall, our gross leasable area rose to 170,000m2. Plaza Cañada Huehuetoca is located in Mexico State and has 20,814m2 of gross leasable area.
ARA Foundation celebrates its 5th anniversary and received CEMEFI’s Socially Responsible Enterprise distinction for the 5th year in a row. Between 2005 and 2010, ARA Foundation provided more than 10,000 pro bono houses with areas ranging from 34 to 45 m2. The value of these homes is around $220,000 pesos.
ARA became the first Mexican company is its industry to adopt the new Financial Reporting Interpretation INIF 14, entitled “Contracts for construction, sale and service provision relating to real estate.” This is equivalent to the International Financial Reporting Interpretation 15 (IFRIC 15), under which revenues are recognized when owners have signed their deeds rather than through the previous percentage-of-completion basis.
After 2008, which was a complicated year in macroeconomics terms, and with lingering difficulties in 2009, the return on ARA shares was 70% in the year, outperforming the Mexican Stock Exchange’s IPC index by 43.5%.
In 2009, we had 150,000m2 of gross leasable area in 5 shopping centers located in Mexico State, Baja California and Veracruz. ARA owned 50% in four of them, and one was wholly owned.
We opened 15 new housing developments, representing a combined total of 65,912 master-plan homes; 6 of these new projects were located in Mexico State.
Citara: A new macro development in the municipality of Huehuetoca, covering an area of 4.3 million m2. The Huehuetoca Master Planned Community is a comprehensive, self-sufficient and ecologically sustainable project. The total number of homes in the housing complex will be around 25,000 units.
We have 20 concrete production plants and extensive transportation and pumping equipment. ARA was the fifth largest producer of ready-mix in the country, all for its own internal use.
In recognition of his 30-year career at the helm of Consorcio ARA, CEO Germán Ahumada Russek is known as “The Man of the House” (El Hombre de la Casa) because his vision, experience, and contributions have proved crucial to the development of Mexico’s housing industry.
Although it was initially established in 2004, Fundación ARA’s first project involved the construction of 280 homes in the Gulf coast state of Veracruz.
We celebrated our tenth anniversary as publicly-traded company on the Mexico City stock exchange.
We segmented our operation into business units as part of the Regional Project. The company is in turn organized into nine separate regions and a residential housing firm, which echo the parent company’s operational guidelines.
We began developing our golf-course community Paraiso Country Club, which takes full advantage of the striking natural beauty of its setting. The 164-hectare project consists of 630 villas and apartments as well as 769 residential lots. The 18-hole, par-72 golf-course was designed on 67.5 hectares of land by renowned architect and golf-course specialist Pedro Güerecam, complete with a 300-yard driving range and six lakes.
On May 8, 2006 we paid an extraordinary dividend of $1.33 billion pesos, equivalent to $1.0198 pesos per share and a yield of 9.06%.
2005 - 2004
After 427 days of construction, we opened Centro Las Americas, the fourth largest complex in the Greater Mexico City Metropolitan Area.
We installed the ControlARA enterprise resource planning system with the aim of strengthening operations, generating information essential to decision-making and providing an increasingly efficient response to the market.
We began offering sales plans to Mexicans working in the United States.
2003 - 2001
We formed an alliance with O’Connor Capital Partners for integrating commercial services into our developments. The venture’s first project was the Centro San Miguel shopping center, serving the needs of the community of Cuautitlan, State of Mexico
In Ixtapaluca, near Mexico City, we began work on the San Buenaventura Affordable Entry-Level housing macro-project, with 20,342 homes.
Our ready-mix production surpassed the 500,000m3 mark.
2000 - 1999
Our land bank grew to 18.9 million m2, enough to build 108,195 Affordable Entry-Level homes.
Our ready-mix production reached 450,000 m3, and we obtained an international concrete certificate of recognition (Registro 99).
We built 700 housing units in Paseos del Caribe, our first Affordable Entry-Level housing development in the Caribbean state of Quintana Roo.
ARA shares are chosen for inclusion in the Mexican Stock Exchange’s main index (IPC).
1997 - 1996
Our human capital grew to 350 employees and we generated a total of 5,000 jobs in Mexico.
ARA begins trading on the Mexican Stock Exchange and we launch our ADR program.
1995 - 1994
We buy our first concrete production unit.
We begin construction of the Pedregal de Tepepan project with 334 homes and a clubhouse.
1992 - 1986
We expand our sphere of action to the states of Queretaro, Quintana Roo, Tabasco, Veracruz, Guanajuato and Sinaloa.
In Cancun, we built Torremolinos, our first development outside the Greater Mexico City Metropolitan Area. After winning a set of development contracts in Cancun, we acquired 20 tracts of land for building the Saint Tropez, Saint Marino, Saint Germain, Saint Michel, Ibiza and Porto Novo developments.
We undertake work on 1,692 Affordable Entry-Level homes as part of Las Margaritas development in municipalities of Metepec and Toluca, west of Mexico City.
1984 - 1977
We completed construction of 1,338 units in Cuautitlan Izcalli and began building 4,104 Affordable Entry-Level homes at Rancho San Antonio.
We designed Middle Income UN6 prototypes and build 400 homes in Mexico State.
With only ten employees, we begin building our first eight homes in Cuautitlan Izcalli, Mexico State.