Ranking of top real estate companies in the first quarter of 2019

Economy and stock exchange

Most of the real estate developers performed poorly in the first quarter of 2019, indicating a decline in the performance of leading companies in the sector. In the following report we present the most profitable companies and losses on a yearly basis, according to investment bank Shuaa.

Most profitable companies

1- Orascom Development Egypt

Orascom Development Egypt's profits jumped 44% to EGP 89.4 million in the first quarter of 2019. The company achieved a net sales of LE 1.5 billion, mostly from OWEST. The company is working hard to leverage all possible resources to maximize the benefits of As soon as it was available, the company reported that the OWEST project was well received in the market, showing sales of about 3.4 billion pounds in contracts and bookings until the announcement of profits in mid-May.

In terms of indebtedness, the recent decline in US dollar value has been in favor of Orascom Development, as the bulk of its debt portfolio is denominated in US dollars. The debt restructuring plan, which aims to repay debt quickly and reduce the cost of debt, is expected to be completed by half The first of 2019.

2 – Talaat Mustafa

Talaat Moustafa Group's first-quarter profit rose 17% year-on-year to EGP 361.2 million on the back of a 39% year-on-year increase to EGP2.24 billion, although the company suffered a quarterly decline of at least From 24% in all sectors of its revenues, including real estate units with 56% decline, hotels and other recurring revenue sectors.

Sales jumped 50.5% to 4.41 billion pounds, the highest figure in the market during the quarter, and the Celia project has been the most significant since its launch, but it seems that Talaat Moustafa's focus has shifted over the current period to Madinaty project with the launch of the new phase, "Prevado".

3 – Nasr City for housing

Revenues for the first quarter of 2019 fell 12.2% year-on-year to EGP 634 million, but still include high margin margins, but with lower margins than Q1 2018, The net profit rose to 329 million jpy at a growth rate of 5% year-on-year, 35% quarter-on-quarter, raising quarterly net margin from 33% in the last quarter of 2018 to 52% in the first quarter of 2019.

Contract sales in the first quarter of 2019 were driven by both Saray and Tag Sultan projects, which registered a year-on-year rise of 104% and 225% respectively. Meanwhile, the Cobalt BusinessDistrict, which has generated EGP 406 million since its launch, Taj City Project.

On the other hand, residential sales in Taj City fell by half compared to the first quarter 2018. In the first quarter of 2018, the company obtained the Ministry's approval of the Taj City project plan, which led to intensive marketing campaigns for the project. The commercial part of the project.

While all of the companies listed above showed strong performance on a year-on-year basis, Nasr City Housing and Development Co., the Porto Holding Group, saw a better performance than in the fourth quarter of 2018.

The most loss

Amer Group

Amer Group Holding has seen poor performance in all respects, but the company is currently benefiting from its strategy of expanding into new markets.

The impact of the Porto-Said project and the expected launch of the Porto Groula project in Matrouh are expected to start with the results of the company in the third quarter 2019. On the other hand, at the revenue level, the company's restaurants are thriving in the summer, Due to its proximity to the northern coast and Ain Sokhna.

2- Heliopolis Housing

During the nine months of fiscal year 2018/19, revenues of Heliopolis Housing reached LE 469 million, down 14% year-on-year, despite the increase in quarterly sales. The increase in financing lease and interest expense payments totaling 201 Million pounds, reflected on the slowdown of growth, and the decline in profits in general.

However, the long-awaited cash-out plans, which began in the fourth quarter of fiscal year 2018/19, resulted in 236.2 million pounds from the sale of land. Some of these funds, according to the administration, will be used to reduce the debt balance of 1.67 Billion pounds.

3 – 6th of October for Development and Investment

The 6th of October Development and Investment Company turned to profitability with a profit of LE 161 million, compared to EGP 164 million in the fourth quarter of 2018, but still lower by 24% year on year, partly influenced by low margin revenues.

At the moment, the company seems to be losing its sales appeal and is unable to break its record for many factors. However, with its recent signing with the New Urban Communities Authority for a 500-acre plot at Al Yusr, The launch of the two resorts, Adnak and Adnak, is expected to lead to LE 6.3 billion, which is the remaining part of the company to reach its targets this year.

The achievement of this target remains questionable as more has not been announced yet.

4. Emaar Misr Development

Emaar Misr's development profit fell on a year-on-year basis despite the increase in interest income, which could be largely justified by a significant decline in revenues from the Townhouse Cairo project.

In the same context, it appears that the dispute with Al Nasr Housing and Development Company about the Townhouse Cairo project has not yet been resolved.

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