EGX-listed real estate developer Madinet Masr reported EGP 280.3 mn in net income in 2Q 2023, up 140% y-o-y , according to its earnings release (pdf). Revenues climbed 22% y-o-y to EGP 1.2 bn during the period.

On a 1H basis, Madinet Masr reported net income of EGP 584.7 mn, up 147% y-o-y. Revenue grew 23% y-o-y to EGP 2.2 bn during the period, driven by new project launches and expansions.

Rising sales: Madinet Masr’s gross contracted sales rose 55% y-o-y to hit EGP 5.3 bn during 1H 2023. Nearly 64% of sales were at the company’s Taj City project, with the remainder at Sarai. The company’s subsidiaries Minka and related special purpose vehicle EgyCan generated another EGP 1.45 bn in sales that didn’t show up in the company’s consolidated results for 1H.

Units sold + deliveries both dipped: The increase in sales value came even as the number of units sold dropped 8% y-o-y to 1.1k from 1.2k units. Deliveries also fell by 42% y-o-y to 479 units during the first half.

What they said: “During the first half of 2023, we focused on driving sales and revenue growth through the successful launch of new projects and phases across our developments,” CEO Abdallah Sallam said. “As part of our nationwide expansion plan, we successfully launched Zahw in West Assiut in June 2023. This marks a significant milestone in our commitment to bring our vision of innovative urban development to communities beyond Cairo,” Sallam added.

ICYMI- Sallam talked about the company’s expansion mindset — which led it to rebrand earlier this year — during a panel at Enterprise Exports & FDI Forum in May.

SOUND SMART- In real estate, sales ≠ revenues. With off-plan sales dominating the industry, most real estate companies book a sale when you sign a contract to buy a home. But they only record (some or all) of the value of the unit it sold you when it (a) delivers the unit to you or (b) hits a percentage completion on a total project. In most cases, then, revenues are composed of sales from past periods, while sales in a given quarter will be recognized as revenues in the future when units are completed or delivered.

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