Talaat Moustafa Group Holding (TMG Holding), a prominent real estate holding led by Egyptian multimillionaire businessman Hisham Talaat Moustafa, is off to a great start this year after a record performance in 2021, as it continues to create increased value for shareholders, backed by a sustained increase in demand for real estate assets.
The leading property developer reported a net profit after tax of EGP554 million ($28.8 million) in the first quarter of 2022, a 27-percent increase from EGP434.6 million ($23.4 million) in the first quarter of 2021, owing primarily to a double-digit increase in revenue and increased efficiency due to cost-cutting strategies implemented by the management.
The sustained increase in demand for real estate assets, which led to a rise in the price of developed properties, drove a 12-percent increase in revenue from EGP2.7 billion ($145.35 million) to EGP3.02 billion ($162.5 million) during the period under review.
This comes after the Egyptian property developer reported a 95-percent increase in revenue in 2021, from EGP16.6 billion ($1.06 billion) in 2020 to EGP32.4 billion ($2.06 billion), due to increased demand for real estate assets as demand returns to pre-pandemic levels.
As a result of the group’s outstanding financial performance in 2021, assets linked to TMG Holding rose by more than EGP131.4 billion ($8.3 billion), driven by an increase in the firm’s development properties, which are now valued at more than EGP54 billion ($3.4 billion).
TMG is a major player in Egypt’s real estate market. The late Talaat Moustafa founded the company in 1974, and it has grown to become one of Egypt’s largest real estate holdings.
Hisham Talaat Moustafa, who was instrumental in the firm’s transformation, owns a 43.16-percent stake in the conglomerate on behalf of the Talaat Moustafa family.
Shares in the property developer were trading at EGP7.5 ($0.403) per share as of press time on May 26, 2.33-percent lower than their opening price on the Egyptian Stock Exchange.
TMG’s market cap is now around EGP15.5 billion ($834.2 billion), while Moustafa’s stake is worth EGP6.7 billion ($360.7 million).
