Madinet Nasr Housing & Development (MNHD), an urban developer in Egypt, announced on Monday its results for the quarter ending 31 March (Q1) 2017, reporting consolidated revenues of EGP 751.7m, up 263% year-on-year (y-o-y).
“Top-line gains filtered down to the company’s net profit, which recorded EGP 407.2m in the first quarter of 2017, are up 494% y-o-y and with a 26-point net margin expansion to 54.2%,” according to the company’s statement.
On a standalone basis, the MNHD recorded an almost five-fold increase in revenues to EGP 690.4m while net profit came in at EGP 406.2m, up an impressive 510% y-o-y, the statement read.
The statement added that revenue growth continued to be driven by the company’s SARAI development that recorded sales of EGP 1.79bn in Q1, with a total of 780 units sold during the quarter.
Meanwhile, the statement stated that total contracted sales for Q1 stood at EGP 1.84bn. “MNHD recorded a construction outlay of EGP 146m during Q1 2017, with deliveries up 20% y-o-y compared to the same period last year.”
“In our first full quarter post the floatation of the Egyptian pound, we are seeing strong signs that demand for real estate remains resilient as evidenced by our ability to continue driving revenue, and net profit grew period-on-period,” said MNHD CEO Ahmed El Hitamy, according to the statement.
He added that “Egypt’s favourable demographics and consumers’ continued confidence in property as a safe investment have negated fears that the market would be adversely affected post the floatation.”
The MNHD said that, on the contrary, priced at a discount compared to regional peers, Egypt’s real offerings are becoming “increasingly attractive to Egyptian expatriates alongside strong local demand,” El Hitamy added.
Heading into the second half of the year, according to the statement, MNHD is pushing through with efforts to launch new phases at its Taj City development. “Phase one of the 3.5 million-square-metre, mixed-use, high-end development, Tag Sultan, was sold out during the third quarter of 2015, generating more than EGP 2.1bn in sales since its December 2012 launch,” the statement noted.
Meanwhile, units at T-Zone, Taj City’s second phase launched in December 2015, were also sold out as of year-end 2016 after having generated EGP 2.4bn in sales. Following the amendment of its master plan, the EGP 60bn Taj City project will boast a wide variety of residential communities.
“At MNHD’s 5.5-million-square-metre SARAI project—located in New Cairo in close proximity to the New Administrative Capital—the company continues to monetise this unique land plot, and it already has units sold worth a total of EGP 2.81bn since its launch in November 2016.”
In conclusion, the statement said, “The MNHD has more than 8,000 units under development/design in five key projects in the Greater Cairo area, offering exposure to a broad socioeconomic spectrum of consumers.”