TMG’s net income climbed 4.4x last year: Real estate giant Talaat Moustafa Group Holding (TMG) reported a net income of EGP 14.5 bn in 2024, a 4.4x y-o-y increase from EGP 3.3 bn in 2023, according to the company’s latest earnings statement (pdf). The company’s revenues jumped 50% y-o-y to EGP 42.6 bn during the period.

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The hospitality sector was the main driver of growth, recording total revenues of EGP 11.5 bn in 2024, up 225% y-o-y. This increase was underpinned by the group’s acquisition of a majority stake in Legacy Hospitality last year, which generated some EGP 719 mn of additional net income.

ICYMI- TMG’s subsidiary Icon Investments inked the final contract for acquiring a 51% stake in Legacy Hospitality — a group of seven historic hotels — back in February 2024.

Also supporting top line growth: Revenues from recurring income streams — malls, sporting clubs, utilities, contracting, and other services — grew 101% y-o-y in 2024, while the development sector’s revenues climbed 14% y-o-y. TMG also recorded significant net foreign currency gains in 2024, including USD 255 mn in hospitality revenues and SAR 5.1 bn in real estate sales booked in Saudi Arabia.

A strong year for sales: The company’s record 2024 sales of EGP 504 bn were fueled by the Benan sustainable city project in Saudi Arabia, which generated over EGP 68 bn in sales during the year, and the North Coast’s SouthMed, which has recorded EGP 281 bn in sales since its launch in July. TMG sold a total of 29k units in 2024, up from 17k in 2023, accounting for 43% of all sales made by the country’s top real estate developers.

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.

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