Despite economic fluctuations… booming profits and real estate sales on the Egyptian stock market
Despite the economic turmoil and fluctuations that burdened all economic sectors, real estate companies managed to record growth rates in business results during the first 9 months of this year, thanks to the interest of a large group of investors in the sector. as one of the safer investment alternatives, to protect against the expected fall in the value of the pound against the dollar.
Investing in real estate is one of the investment alternatives to which a foreign investor resorts, because it is one of the best types of investment and is least affected by this fluctuation, and in addition, it is the largest of these types in preserving the real value of the local currency, which is translated according to the contractual sales numbers of real estate investment companies during the recent period.
Amwal Al-Ghad tracked the results of the 6 largest real estate companies listed on the Egyptian Stock Exchange during the financial period ending September 2022, which showed a positive growth rate in terms of profit and sales.
Youssef Al-Banna, a real estate sector analyst at Al-Naim Investment Bank, said that major real estate companies in the real estate sector achieved strong growth during the nine months of this year, such as Talaat Mustafa, Orascom Development, Sodic, Palm Hills, Nasr City and Emaar Development.
He attributed the strong business results of these companies, despite the deterioration of the inflation rate and the liberalization of the pound to dollar exchange rate, to the recording of strong revenues with good numbers in the handover of units with sales growth, which resulted in them recording high profitability.
He believes the good financial position of these companies helps them accelerate construction in the face of price fluctuations in the local currency, especially since they have a middle-income customer base and above, which helps them easily pass on price increases in costs.
He expected these companies to continue to post strong profit growth rates over the next year, noting that sales could be hit and stagnate due to a decline in purchasing power, despite the safe-haven recourse to real estate by a broad base of investors.
The impact of purchasing power is thought to stem from the preference of a broad base of investors for other investment alternatives such as gold and others.
£13.9 billion, Talaat Mostafa’s income
The consolidated financial indicators of Talaat Moustafa Group Holding Company, during the first nine months of 2022, showed a 15% increase in the company’s net profit, as it generated a profit of 1.96 billion pounds in the period, compared to a profit of 1.7 billion pounds in the comparative period of 2021.
The company’s revenue rose to £13.91bn in the period, compared with £11.31bn in the comparable period last year.
Talaat Moustafa Holding recorded property sales of £21 billion in the nine months to September 2022, compared to exceptional sales of £27.5 billion during the comparative period in 2021, which saw the opening of the giant Noor project.
Palm Hills achieved EGP 17.5 billion in real estate sales
Palm Hills generated sales of £17.5 billion in the 9 months, surpassing the level of sales achieved during the fiscal year ending 31 December 2021, with a total of £17.3 billion.
Its profits rose by 40.82%, as it made a profit of £920.44 million, compared to a profit of £653.62 million in the comparative period in 2021.
The company’s revenue rose to £9.55bn in the period, compared with £5.89bn in the comparable period last year.
SODIC’s profit increased by 26.4%
Sixth of October Development and Investment (SODIC) recorded total contracted sales of EGP 11.8 billion, an increase of 119% compared to the same period last year.
The company’s profits increased by 26.4%, achieving a net profit of £438.74m in the period, compared to £346.95m in the same period last year.
The company’s revenue rose over the nine months to £4.23bn, compared to £2.97bn in the same period last year.
£1.5bn profit from Orascom Development
Orascom Development Egypt’s consolidated financial statements revealed that its profits grew by 26.44%, during the first nine months of 2022, as it generated a profit of 1.53 billion pounds during the period, compared to a profit of 1, £21 billion in the comparison period of 2021.
The company’s revenue rose during the period to £6.68 billion, compared to revenue of £4.9 billion in the comparative period in 2021.
The company generated real estate sales during the nine months of 2022 in the amount of EGP 7.3 billion, an increase of 16.9% compared to the nine months of 2021.
Madinet Nasr Housing’s profit increased by 114%
Madinet Nasr Housing and Development’s sales increased during the period to £3.08 billion, compared with sales of £1.38 billion in the comparable period last year.
Its profits rose 113.7%, as it made a profit after tax (for the parent company) of £534.34m in the period from January to last September, compared with a profit of £249.98m in the comparable period period of 2021, taking into account the rights of minorities.
The revenues of Emaar Egypt for Development are 11.7 billion pounds
Emaar Misr Development Company’s consolidated financial statements revealed that its profits rose by 74% during the first 9 months of this year, as it recorded a net profit of £4.89 billion during the period, compared to a profit of £2.81 billion in the same period period. period last year.
The company’s revenue rose over the nine months to £11.71bn, compared to £7.62bn in the same period last year.