Madinet Nasr for Housing and Development (MNHD) has announced its financial results for the first quarter (Q1) of 2021, reporting consolidated revenues of EGP 477m.
The company also reported a consolidated net profit of EGP 115m for the quarter, reflecting a net profit margin of 23%.
Excluding the value of the non-recurring large deal of 115,000 sqm in land sales at Taj City, which stood at EGP 1.15bn in Q1 of 2020, pre-sales in Q1 of 2021 recorded a 6% growth over presales in Q1 of 2020. This saw the company earn EGP 1,464m against EGP 1,385m.
Meanwhile, the net profit for Q1 of 2021 has decreased 3% as compared to the net profit of Q1 of 2020, excluding the profits of the large land deal already mentioned.
The absence of a large land sale deal in Q1 of 2021 resulted in a relative decrease in revenues and net profits, as compared to Q1 of 2020.
By nature, the large land sale deals are not recurring in each quarter, while the sale of residential units remain the main regular stream of MNHD business’ revenues and profits.
The company continued its programme of unit deliveries to clients in Taj City, Sarai, and Nasr Gardens. The total number of units delivered in Q1 of 2021 stood at 199, compared to 11 units delivered in Q1 of 2020, reflecting a growth of over 17 times.
MNHD investments in project infrastructure and construction in Q1 of 2021 amounted to about EGP 700m. This reflects a strong execution programme to complete and deliver about 4,000 units to clients in Taj City and Sarai in 2021-2022.
Presales in Taj City residential compounds, namely Block 20, Taj Gardens, Shalya, Zone T, and the newly launched compound Elect, recorded EGP 496m in Q1 of 2021, compared to EGP 384m in Q1 of 2020. Total presales at MNHD’s SARAI development amounted to EGP 968m during Q1 of 2021.
MNHD Chairperson Hazem Barakat said, “Although the unprecedented events of the novel coronavirus (COVID-19) pandemic and related precautionary measures have continued in Q1 of 2021, impacting the economy, at large, and the real estate market, in particular, MNHD continued sustainable business operations and results in sales, project execution, and units delivery to clients.”
He added, “MNHD has executed the disbursement of the first instalment of the cash dividends of EGP 216m to shareholders, starting on 6 May 2021.
In total, MNHD has more than 10,000 units under development or design across eight key projects in the Greater Cairo area. The company offers exposure to a broad socioeconomic spectrum of consumers.