Madinet Masr nearly tripled its income in 1Q: EGX-listed real estate developer Madinet Masr saw its net income surge 286.7% y-o-y in 1Q 2024 to EGP 1.18 bn, the company said in its standalone earnings release (pdf). The company’s revenues saw a 194.6% y-o-y increase during the quarter to EGP 2.99 bn.

A record quarter for gross contracted sales: The developer saw its gross contracted sales grow more than 8x in the quarter to a record EGP 14.9 bn — 31.9% of the sales came from Taj City and 68.0% came from Sarai.

More units sold, less delivered: The developer sold around 2.3k units during the quarter, that’s 603.9% more than the 333 units sold in 1Q 2023. However, the company’s deliveries dropped 49.3% y-o-y during the quarter to 140 units, which it attributed to a “focus on mass construction in the public areas of Taj City and Sarai.” The company expects deliveries to pick up towards the end of the year.

SOUND SMART- In real estate, sales ≠ revenues: Most real estate companies book a sale when you sign a contract to buy a home, but only record (some or all) of the value of the unit they sold when they (a) deliver the unit to you or (b) hit a percentage of completion of the overall project. Therefore, in most cases, 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.

ALSO FROM MADINET MASR-

Madinet Masr and Heliopolis Housing and Development (HHD) will launch their 490-feddan joint residential project in HHD’s New Heliopolis before the end of 2024, Madinet Masr CEO Abdallah Salam told Asharq Business. The project is expected to generate revenues of EGP 194.4 bn, an unnamed source with knowledge of the matter told Asharq Business.

There may be more: In March, Madinet Masr submitted an offer to develop three land plots with a total area of 580 feddans in New Heliopolis, which HHD said at the time it was looking into.

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