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Egyptian multimillionaire businessman Hisham Talaat Moustafa is set to receive EGP151.4 million ($9.65 million) in dividends from his stake in Talaat Moustafa Group Holding (TMG Holding), a Cairo-based conglomerate.
The $9.65 million in dividends will be paid from the group’s retained earnings as part of the cash distribution approved by the board of directors.
TMG through its real estate segment operates as a leading player in Egypt’s real estate sector. Moustafa, who played a key role in the firm’s transformation, controls a 43.16-percent stake in the conglomerate for the Talaat Moustafa family.
At the end of 2021, the Egyptian group reported a nine-percent increase in its revenue from EGP14.1 billion ($898.64 million) in 2020 to EGP15.34 billion ($977.67 million), despite the impact of the COVID-19 pandemic on its operations.
The single-digit earnings growth can be linked to a near triple-digit expansion in real estate sales during the period, owing to a year-on-year increase in demand for real estate assets as demand returns to pre-pandemic levels.
The strong demand for real estate assets during the year saw the group’s real estate sales increase by 95 percent, from EGP16.6 billion ($1.06 billion) in 2020 to EGP32.4 billion ($2.06 billion), while the group’s unearned sales revenues surpassed EGP63 billion ($4 billion), representing about 14,500 units scheduled to be delivered in the next five years.
The increase in earnings was also supported by a 104-percent increase in its hotel revenue from EGP622 million ($40 million) in 2020 to EGP1.27 billion ($80.8 million), driven by the gradual reopening of business in Egypt.
As a result of the strong financial performance, the board of directors authorized a final dividend of EGP0.17 ($0.010834) per share, bringing the total payout to shareholders to EGP360 million ($22.94 million).
According to the board’s decision, Moustafa will receive EGP151.4 million ($9.65 million) in dividends from his stake in the Egyptian conglomerate.
