Profitability and financial structure of Italian real estate companies: quantitative profiles

Topicality. The pandemic has devastating effects on real estate companies. The sector is economically important in many countries. Purpose. This research analyses the economic and financial dynamics of Italian real estate companies before and during the pandemic. This is also to outline possible relaunch strategies, post Covid-19. Research methods. The balance sheets of 1,559 companies, with a turnover exceeding € 800,000, for the decade 2011 - 2020 were analyzed, illustrating the average trends of Roe and financial independence index, for Italy and for each of its macro-areas (North, Centre, and South). The data have been subjected to statistical processing. The Anova and Tukey- Kramer methods were used for the comparison between macro-regions. Results. ROE decreased in the years 2012-2013 due to the reverberations of the 2008 crisis. It then improved, with a decline due to the pandemic, but not generalized. RoE was always positive. There are no significant differences between the different geographical areas. There is evidence of an excellent financial situation, which has improved over time. Implications. This study implements the modest economic literature on these companies. Quantitative research highlights the gains that justify the presence of many companies. Public policies should be attentive to the sector that implements the national GDP. The Italian situation can be a useful reference for all countries that want to develop the real estate market.