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Cairo-based real estate firm, Palm Hills Developments, led by Egyptian billionaire Yasseen Mansour, reported a decline in profit during the first quarter of 2023 compared to the same period in the previous year.
According to the group’s recently published financial results, Palm Hills’ profit in Q1-2023 dropped by 14 percent, from EGP 294.96 million ($9.54 million) in Q1-2022 to EGP 252.67 million ($8.18 million).
The decline can be attributed to a surge in operating expenses, which offset the gains made from increased sales.
The firm witnessed a robust demand for real estate assets in the first three months of 2023, resulting in a 22-percent rise in revenue from EGP2.9 billion ($93.85 million) to EGP3.52 billion ($113.92 million) over the same period.
Mansour, executive chairman of Palm Hills, commented on the financial performance, stating: “The company achieved net sales of EGP 6.8 billion ($220 million) in Q1-23, a growth of 22 percent year-on-year, surpassing the sales level of EGP 5.50 billion ($178 million) in Q1-22.”
Mansour highlighted the success of key projects, including Badya, Palm Hills New Cairo, The Crown, and Palm Hills Alexandria, which accounted for 78 percent of residential new sales in Q1-23.
He also mentioned the completion of a securitization transaction worth EGP 1.1 billion ($35.6 million) through the issuance of securitized bonds in cooperation with EFG Hermes.
During the first quarter of 2023, Palm Hills increased construction spending by 23 percent year-on-year, amounting to EGP 1.20 billion ($38.8 million). This investment demonstrates the company’s commitment to meeting the rising demand for real estate assets.
Palm Hills, a subsidiary of Mansour Group, is recognized as one of Egypt’s prominent real estate developers. With a strong portfolio of active investments, the company specializes in developing residential, commercial, and resort communities.
Under Mansour’s leadership, the firm delivered exceptional financial results at the end of the 2022 fiscal year, surpassing $40 million in profits and solidifying its position in the real estate and property development markets.
