It’s been a good year for the real estate sector: Rises in both income and revenues last year, and the promise of more affordable construction materials as the pound strengthens alongside rumors of more Ras El Hekma-like projects to come seem to be persuading the industry that 2024 might be a bumper year for the sector.

PALM HILLS RECORDS 26% IN 2023 Y-O-Y

Real estate developer Palm Hills Developments saw its net income rise 26% y-o-yin 2023 to EGP 1.6 bn amid a strong sales momentum within the company’s existing projects portfolio and higher selling prices and delivery rates, the company’s earnings release (pdf) showed. New sales jumped 129% to EGP 59.5 bn and revenue increased 28% to EGP 17.5 bn.

A solid quarter: The company logged a net income of EGP 532 mn in 4Q 2023, up 54% fromthe same quarter a year earlier. New sales rose 189% y-o-y to EGP 24.5 bn, while revenues increased 53% to EGP 6.2 bn.

Around 25% of sales in 2023 were from Egyptian expats and customers from other Arab countries, who were attracted by currency devaluations that reduced the price point of units brought with FX, Palm Hills Chairman Yassin Mansour told Asharq Business.

Palm Hills shows little sign of slowing down: “We are still adopting the strategy of accelerated construction spending and speeding up the execution pace across our key projects, to hedge from cost inflation,” said Palm Hills Executive Chairman Yasseen Mansour. “In fiscal year 2023, we spent more than EGP 7.5 bn both on commercial and residential projects and we plan to continue spending in fiscal year 2024.”

TMG BOTTOM LINE UP 44% IN 2023 AND STOCKS UP 588% IN ONE YEAR

Record sales boost TMG Holdings’ bottom line: Talaat Moustafa Group Holding’snet income rose 44% y-o-y in 2023 to EGP 3.3 bn on the back of record breaking contractual real estate sales, which surged to EGP 142.7 bn, the company said in a disclosure(pdf). Revenues increased 43% y-o-y to EGP 28.4 bn in 2023.

TMG stocks have skyrocketed on the back of high-profile acquisitions: Shares in the real estate giant currently stand at EGP 66.00, up 588.4% in 12 months. The acquisition of 51% of the government’s Legacy Hospitality — a group of seven of historic hotels — through it’s Icon Investments subsidiary and its more recent involvement with the mammoth USD 35 bn Ras El Hekma have boosted investor confidence in the group.

Shareholders to get a slice of the earnings: TMG is paying out a dividend of EGP0.218 per share in two equal installments. The first installment will be paid on or before 31 May, while the second installment will be paid on or before 31 July.

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