Palm Hills Developments, a Cairo-based real estate business led by Egyptian billionaire Yasseen Mansour, has reported a double-digit percentage increase in its profit at the end of 2021 despite the impact of the COVID-19 pandemic on the real estate industry.
Figures contained in the financial report revealed that the group’s consolidated net profits increased by 14.26 percent in 2020 from EGP749.17 million ($47.7 million) in 2020 to EGP856.06 million ($54.5 million), owing to an increase in demand for real estate assets during the year.
The group explained that the strong earnings growth in 2021 and the impressive financial performance delivered during the period are the results of its marketing strategies, as well as the management’s cost-cutting strategies, which delivered value for shareholders.
Aside from gains from the group’s impressive management, earnings increased by 48 percent from EGP5.21 billion ($331.7 million) in 2020 to EGP7.71 billion ($490.84 million) at the end of 2021, owing to a year-on-year increase in demand for real estate assets as demand returns to pre-pandemic levels.
As a result of the impressive financial performance, the group’s board recommended a cash dividend distribution of EGP0.10 ($0.00636) per share for 2021, aggregating to a total value of EGP304.05 million ($19.35 million) for shareholders.
In an effort to place the company’s operations on the path of growth, the board also unveiled plans to invest EGP3.8 billion ($242 million) in 2022 to cement its position in the real estate industry and unlock its value as a going concern.
The projected investment for the coming financial year represents an increase of 52 percent, or EGP1.3 billion ($82.7 million), compared to the EGP2.5 billion ($159 million) that it projected for the current financial year.
As of press time, March 9, shares in the leading real estate developer were trading at a price of EGP1.48 ($0.09422), 1.79-percent higher than their opening price on the Egyptian Stock Exchange.
At the current price, the group’s market capitalization is valued at EGP4.47 billion ($284.57 million), while Mansour’s stake in the group is worth EGP209.2 million ($13.32 million).
