Palm Hills Developments, a Cairo-based real estate business led by Egyptian billionaire Yasseen Mansour, is set to reward its shareholders with a dividend of EGP304.06 million ($16.7 million) to mark the end of its 2021 financial period.
The Egyptian real estate company will reward shareholders with a cash dividend distribution of EGP0.10 ($0.00548) per share in 2021, in accordance with a resolution passed at its annual general meeting.
The $16.7-million dividend will be paid from the company’s retained earnings, as agreed by the board of directors. Mansour will receive a total payout of EGP15.23 million ($835,000) from the dividend distribution.
The million-dollar payout is linked to the real estate company’s strong financial performance at the end of 2021.
According to figures in the group’s 2021 earnings report, its consolidated net profits increased 14.26 percent, from EGP749.17 million ($47.7 million) in 2020 to EGP856.06 million ($54.5 million), due to an increase in demand for real estate assets during the year.
The company 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 to 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 an increase in demand for real estate assets as demand returns to pre-pandemic levels.
The board also announced plans to invest EGP3.8 billion ($242 million) in 2022 to cement the company’s position in the real estate industry and unlock its value as a going concern, in an effort to put the company’s operations on a growth path.
Palm Hills shares were trading at EGP1.69 ($0.09265) per share as of press time, 4.07 percent higher than their opening price on the Egyptian Stock Exchange. The company’s market capitalization is valued at EGP5.19 billion ($284.54 million) at the current price.
