Palm Hills Development and Reconstruction plans to deliver more than 500 units in the Badia project during 2022, and the project will become the largest contributor to its sales.
Yassin Mansour, CEO of the company, said: “We spent EGP9 30m on construction activities during 1Q 2022, a growth of 36% YoY, as we maintain our steady focus on increasing construction spending to hedge against any unforeseen cost inflation in the coming quarters.
Badya continued to progress in terms of new sales, construction and handover momentum. Sales in Badya grew by a remarkable 308% YoY to reach EGP 1.9bn with 428 units sold during 1Q 2022. We are planning to deliver more than c.500 units in Badya during 2022 and expect Badya to be the largest contributor to this year’s sales.
During 1Q 2022, the Company successfully concluded its first Islamic Sukuk issuance of c.EGP 3.25bn with the objective of further strengthening Badya’s funding.
The Company’s net debt stood at EGP 333m in 1Q 2022, the lowest level in the Company’s history. Receivables reached EGP 25bn in 1Q 2022, covering net debt 73 times. Net debt/EBITDA stood at 0.6 times in 1Q 2022.
Despite various macro and geopolitical challenges around the globe, the company is still confident that it will achieve FY2022 announced operational and financial targets. Real Estate has always been and will continue to be a primary hedging tool against inflation even during periods with attractive interest rates.
New sales (Residential and Commercial) grew by a remarkable 62% YoY to EGP 5.5bn in 1Q2022, up from EGP 3.4bn during the same period last year. Sales growth was mostly driven by a 97% YoY increase in the number of units sold, which recorded 959 units in 1Q2022 compared to 488 units sold during the same period last year, complemented by the YoY increase in average selling prices per sqm across all projects. Commercial new sales reached EGP 853m during 1Q 2022, an increase of 59% YoY, due to the strong uptake in Palm Hills New Cairo’s launched commercial offerings and Village Gate Mall in East Cairo, alongside healthy momentum in the Crown Central Mall in West Cairo.
Badya continued to witness strong sales momentum during FY2022, as it recorded a remarkable growth of 308% YoY to reach EGP 1.9bn in 1Q2022, translating into 428 units sold during the quarter, up from EGP 467m (137 units) during the comparable period.
Palm Hills New Cairo, the Company’s second largest project, exhibited a growth of 129% YoY in new sales during 1Q 2022 amounting to EGP 1.24bn (228 units), compared to EGP 539m (59 units) during the same period last year.
The Company spent EGP 930m on construction activities in 1Q 2021, compared to EGP 681m during the same period last year, an increase of 36% YoY, in line with the Company’s plans to spend more than EGP 3.4bn during FY2022.
The value of ready to move inventory (completed units) stood at EGP 3.8bn across several projects in West Cairo, East Cairo and North Coast in 1Q 2022.