Madinet Masr, one of Egypt’s leading urban community developers, announced on 9 November 2023 its standalone financial results for the nine-month period ended 30 September 2023 (9M 2023), reporting a net profit of EGP 1.4 billion on total revenue of EGP 4.4 billion. The Company reported a net profit of EGP 773.2 million for the quarter ended 30 September 2023 (Q3 2023), booking a top line of EGP 2.2 billion.
Key Highlights
• Madinet Masr set a new record generating gross contracted sales of EGP 14.9 billion for 9M 2023, up by 121.9% y-o-y as the Company expanded and unit sales grew. Newly acquired subsidiaries – Minka and EgyCan – booked EGP 2.2 billion in contracted sales which were not consolidated in Madinet Masr’s results, bringing total contracted sales to EGP 17.1 billion. On a quarterly basis, gross contracted sales reached EGP 9.6 billion in Q3 2023, an increase of 192.4% y-o-y.
• The Company delivered a total of 792 units during 9M 2023, down 28.8% y-o-y, due to a higher inventory of ready-to-move in units 2022. In Q3 2023, Madinet Masr delivered a total of 314 units, up by 11.7% y-o-y.
• Revenue recorded EGP 4.4 billion for 9M 2023, up by 48.0% y-o-y, supported by strong gross contracted sales growth. On a quarterly basis, revenue reached EGP 2.2 billion in Q3 2023, an increase of 85.2% y-o-y.
• Gross profit came in at EGP 2.9 billion in 9M 2023, rising 134.3% y-o-y. Madinet Masr’s gross profit margin expanded to 64.9% in 9M 2023 from 41.0% in 9M 2022, reflecting increased revenue from new sales with higher margins as compared to revenue from unit delivery with lower margins. In Q3 2023, gross profit recorded EGP 1.5 billion, climbing 120.2% y-o-y, with an associated gross profit margin of 67.1% versus 56.5% in Q3 2022.
• Madinet Masr recorded an EBITDA of EGP 1.9 billion for 9M 2023, a 122.4% y-o-y increase, yielding an EBITDA margin of 43.5% for the period compared to 28.9% in 9M 2022. On a quarterly basis, EBITDA recorded EGP 1.1 billion for Q3 2023, up by 127.8% y-o-y with an associated margin of 47.2% against the 38.4% booked for Q3 2022.
• The Company achieved a net profit of EGP 1.4 billion for 9M 2023, rising 149.2% y-o-y with a corresponding net profit margin of 30.6% against the 18.2% booked for 9M 2022. Net profit came in at EGP 773.2 million for Q3 2023, up by 151.0% and yielding an enhanced net profit margin of 34.5% versus 25.4% in Q3 2022.
• Net debt stood at EGP 455.7 million at the close of 9M 2023, marking a 67.2% year-to-date decrease, in line with Madinet Masr’s strategy to optimize efficient utilization of borrowing to support growth and manage financial risk. The net debt/EBITDA ratio stood at 0.2x as of 30 September 2023, down from 1.2x at year-end FY 2022.
• Net notes receivable recorded EGP 4.2 billion as of 30 September 2023, up by 5.1% from year-end 2022, yielding a receivables/net debt ratio of 9.1x for 9M 2023, up from 2.8x at the close of FY 2022. Total accounts and notes receivable, including off-balance sheet PDCs for undelivered units, amounted to EGP 24.9 billion, up 75% from EGP 14.2 billion as of 31 December 2022.
• Cash collections booked EGP 3.7 billion in 9M 2023, up by 42.0% y-o-y. On a quarterly basis, the Company made collections of EGP 1.8 billion in Q3 2023, an increase of 78.9% y-o-y.
• Madinet Masr deployed EGP 1.5 billion in construction and infrastructure CAPEX during 9M 2023, up from an outlay of EGP 1.3 billion in 9M 2022, due to ongoing construction primarily at Taj City. Total new construction contracts awarded in 9M 2023 reached EGP 3.7 billion. In Q3 2023, CAPEX expenses booked EGP 596.6 million, up from the EGP 542.0 million deployed in Q3 2022.
Management Comment
As we approach the end of 2023, I am pleased to share yet another robust set of results for Madinet Masr, which saw us achieve remarkable growth in 9M 2023 all while making evident progress on our new growth strategy.
Our unwavering dedication to growth and innovation, the dedication of our talented team, and a solid strategic vision have allowed us to carry forward the momentum from the beginning of the year. Madinet Masr delivered outstanding results with gross contracted sales increasing more than two-folds year-on-year reaching an impressive EGP 14.9 billion, in addition to EGP 2.2 billion at Minka and EgyCan. These exceptional achievements have translated into robust financial results that exceed our targets. Consequently, our revenue surged 48% year-on-year to EGP 4.4 billion and net profit more than doubled year-on-year to EGP 1.4 billion, underlining our strong financial performance.
In line with our commitment to foster innovation and remain at the forefront of the Egyptian real estate market, I am delighted with the launch of our new R&D arm “Madinet Masr Innovation Labs”. Innovation Labs will be instrumental in driving forward the Company’s vision for groundbreaking and cutting-edge solutions in the real estate space. Our latest product is “Touba”, a platform that revolutionizes the concept of buying and investing in real estate by leveraging digital capabilities and addressing homeowners’ evolving needs.
As we look ahead, we are optimistic about the potential opportunities that lie in our path and confident in our ability to navigate challenges while capitalizing on these opportunities. We are encouraged by Egypt’s ever-resilient real estate market fundamentals and look forward to closing the year on a positive note.
Abdallah Sallam
Chief Executive Officer
Operational Performance
Gross Contracted Sales
Madinet Masr booked gross contracted sales of EGP 14.9 billion during 9M 2023, increasing 121.9% y-o-y from EGP 6.7 billion in 9M 2022. Approximately 69.4% (EGP 10.3 billion) of Madinet Masr’s gross contracted sales for 9M 2023 were recorded at Taj City, the Company’s 3.6-million-sqm mixed-use development in the eastern suburbs of Cairo. Meanwhile, 30.4% (EGP 4.5 billion) of Madinet Masr’s gross contracted sales for 9M 2023 were generated at Sarai, a 5.5-million-sqm mixed-use project near the New Administrative Capital on the Cairo-Suez Road.
The Company sold a total of 2,585 units in 9M 2023, up 14.7% y-o-y from 2,253 units in 9M 2022. Madinet Masr sold 1,739 units at Taj City during the nine-month period (9M 2022: 1,032), 834 units at Sarai (9M 2022: 1,221), and 12 units at other projects. In the first nine months of 2023, Madinet Masr delivered on its expansion strategy and launched several new projects across its developments. January saw the launch of Rai in Sarai, with the first phase introducing S-villas and town houses. This was followed by the launch of Elan in Sarai in May, a 356,000 square meter mix-used development. In June, the Company launched Phase 3 of Club Side in Taj City, a 131.5 thousand-sqm development with lofts, apartments, and duplexes. In June, the Company also launched Zahw in West Assiut, it’s first project outside East Cairo. In September, Origami was launched in Taj City, a signature community by Minka featuring a diverse range of residential units spanning 434,284 sqm. As of 30 September 2023, Madinet Masr’s sales across newly launched zones amounted to EGP 10.3 billion.
On a quarterly basis, the Company booked gross contracted sales of EGP 9.6 billion for Q3 2023, up 192.4% y-o-y from the EGP 3.3 billion booked in Q3 2022. Taj City accounted for 72.4% (EGP 6.9 billion) of the quarter’s gross contracted sales, Sarai accounted for 27.3% (EGP 2.6 billion), while other projects accounted for the remaining 0.3% (EGP 28.3 million). Madinet Masr sold a total of 1,530 units during Q3 2023, up by 39.0% from the same quarter of the previous year. Taj City sold 1,033 units in Q3 2023 (Q3 2022: 510), 489 units were sold at Sarai (Q3 2022: 591), while 8 units were sold in other projects.
Cash Collections
Madinet Masr made cash collections of EGP 3.7 billion for 9M 2023, 42.0% above the figure of EGP 2.6 billion collected in 9M 2022. The Company booked a cumulative delinquency rate of 2.0% at the end of 9M 2023, down from the rate of 3.8% reported for 9M 2022. The decrease in the delinquency rate reflects the Company’s continuous efforts to remove nonperforming contracts from its receivables portfolio.
Cash collections totaled EGP 1.8 billion in Q3 2023, an increase of 78.9% y-o-y against the EGP 989.6 million collected one year previously. The quarter’s delinquency rate stood at 1.8% for the quarter down from 3.6% in Q3 2022.
Cancellations
Cancellations stood at EGP 635.3 million for 9M 2023, down substantially compared to EGP 1.7 billion in 9M 2022, due to the prevalent economic environment. As a percentage of Madinet Masr’s gross contracted sales, cancellations booked 4.3% during 9M 2023, down from a rate of 25.4% recorded in 9M 2022. The cancellation rate continues to be below the typical rate of 10-15%.
In Q3 2023, cancellations booked EGP 268.9 million, down 49.3% y-o-y versus the EGP 530.1 million booked Q3 2022. Cancellations recorded 2.8% as a percentage of gross contracted sales in Q3 2023, down significantly year-on-year from the 16.2% booked in Q3 2022.
Deliveries
The Company delivered 792 units across its developments during 9M 2023, down 28.8% y-o-y from the 1,113 deliveries recorded for 9M 2022, due to a higher inventory of ready-to-move in units 2022. In 9M 2023, Madinet Masr completed 691 handovers at Sarai (9M 2022: 657), 99 handovers at Taj City (9M 2022: 436) and 2 handovers at Nasr Gardens (9M 2022: 20), a subsidized housing project.
Madinet Masr recorded 314 deliveries in Q3 2023, up by 11.7% from the 281 units recorded for Q3 2022. The Company delivered 34 units at Taj City during the quarter (Q3 2022: 77), 280 units at Sarai (Q3 2022: 198) and no units at Nasr Gardens (Q3 2022: 6).
CAPEX
Madinet Masr deployed construction and infrastructure CAPEX of EGP 1.5 billion during 9M 2023 up from EGP 1.3 billion in 9M 2022. The Company’s construction and infrastructure investments at Taj City amounted to EGP 913.7 million in 9M 2023, against EGP 636.5 million for 9M 2022. At Sarai, Madinet Masr recorded a construction and infrastructure CAPEX spend of EGP 410.9 million for 9M 2023, against EGP 634.4 million for 9M 2022. Construction and infrastructure CAPEX at other projects totaled EGP 197.5 million for 9M 2023, up from the EGP 70.0 million recorded one year previously. Total new construction contracts awarded in 9M 2023 reached EGP 3.7 billion.
Madinet Masr made construction and infrastructure CAPEX outlays of EGP 596.6 million for Q3 2023, up from the EGP 542.0 million booked in Q3 2022. CAPEX spending reached EGP 368.0 million at Taj City (Q3 2022: EGP 363.2 million), EGP 105.9 million at Sarai (Q3 2022: EGP 158.1 million), and EGP 122.7 million at other projects (Q3 2022: EGP 20.7 million). The overall change in CAPEX for Q3 2023 comes following Madinet Masr’s launch of Zahw in Assiut.
Land Bank
Madinet Masr held a land bank measuring 9.6 million sqm at the close of 9M 2023. The Company’s primary land bank is strategically located in Greater Cairo (Taj City and Sarai). The land is owned in freehold, imparting significant competitive advantages to Madinet Masr. As of 30 September 2023, 37.9% of Madinet Masr’s land bank was held at Taj City, 57.5% at Sarai and 4.6% at Zahw Assiut.
At Taj City, 72.6% of the land area was under development at the close of 9M 2023, with unlaunched residential projects and unlaunched nonresidential projects accounting for 4.7% and 22.6%, respectively. At Sarai, 45.1% of the total land area was under development in 9M 2023, with unlaunched residential projects and unlaunched nonresidential projects accounting for 40.2% and 14.7%, respectively.
As of 9M 2023, Madinet Masr’s 437 thousand sqm land bank in the Assiut region of Upper Egypt was under development, marking the Company’s geographical expansion beyond the Greater Cairo area.
Financial Performance
Income Statement
Revenues
The Company booked revenues of EGP 4.4 billion in 9M 2023, climbing 48.0% y-o-y from a figure of EGP 3.0 billion in 9M 2022. Revenue growth for the nine-month period reflects strong gross contracted sales value.
Deliveries generated EGP 1.1 billion in revenue during 9M 2023, down 35.6% y-o-y, while new sales generated EGP 3.1 billion in revenue during the first nine-months of the year, up by 89.9% y-o-y. Revenue from unit deliveries contributed 26.1% of the Company’s gross 9M 2023 sales revenue of EGP 4.2 billion before cancellations, land sale, installment interest and rental revenue. Meanwhile, revenue from new sales accounted for 73.9% of the Company’s gross revenue for the nine-month period. At the close of 9M 2023, Madinet Masr had an unrecognized revenue backlog of EGP 21.8 billion, calculated at the nominal price of undelivered sales.
Madinet Masr recorded revenue of EGP 2.2 billion for Q3 2023, up by 85.2% y-o-y. Delivery revenue represented 18.3% of the Company’s gross top line during Q3 2023, while revenue from unit sales contributed 81.7% for the quarter.
Gross Profit
Gross profit booked EGP 2.9 billion for 9M 2023, up 134.3% y-o-y from EGP 1.2 billion one year previously. Healthy growth in gross profit was supported by the Company’s strong top-line expansion for the nine-month period. Madinet Masr booked a gross profit margin of 64.9% in 9M 2023, against 41.0% in 9M 2022. The expansion in the gross profit margin (GPM) during the period was achieved due to the increase in revenue from new sales with higher margins as compared to revenue from unit deliveries with lower margins.
Madinet Masr recorded a gross profit of EGP 1.5 billion for Q3 2023, up by 120.2% y-o-y, with an improved GPM of 67.1% for the quarter compared to 56.5% in Q3 2022.
Sales, General & Administrative Expense
Sales, general & administrative (SG&A) expenses came in at EGP 1.0 billion for 9M 2023, expanding 108.8% y-o-y from the outlay of EGP 490.0 million recorded for 9M 2022. SG&A expenses rose primarily due to a 121.9% increase in gross contracted sales during the period. As percentage of revenues, SG&A expense came in at 23.0% for 9M 2023, up from 16.3% one year previously.
SG&A expenses booked EGP 462.5 million for Q3 2023, up by 112.1% y-o-y. SG&A expenses recorded 20.6% as a percentage of revenues in Q3 2023, up from the figure of 18.0% booked for Q3 2022.
Interest Expense
Interest expense recorded EGP 238.3 million in 9M 2023, up from EGP 224.0 million for 9M 2022. On a quarterly basis, interest expense recorded EGP 85.3 million in Q3 2023, up from EGP 76.7 million in the same quarter last year. The increase in Madinet Masr’s interest expense reflects interest rates hikes.
EBITDA
Madinet Masr booked an EBITDA of EGP 1.9 billion for 9M 2023, increasing 122.4% y-o-y from EGP 868.7 million in 9M 2022. The associated EBITDA margin was 43.5% in 9M 2023 compared to 28.9% one year previously due to the increase in the share of new sales with higher profit margins in the Company’s revenue mix for 9M 2023.
In Q3 2023, Madinet Masr recorded an EBITDA of EGP 1.1 billion, up by 127.8% y-o-y, yielding a margin of 47.2% versus 38.4% in Q3 2022.
Net Profit
Net profit reached EGP 1.4 billion for 9M 2023, expanding a remarkable 149.2% y-o-y compared to EGP 545.0 million in 9M 2022. Bottom-line growth for the period reflects increases in gross profit, operating cost and income tax, other operating income as well as financing revenue. The net profit margin (NPM) recorded 30.6% for 9M 2023, against 18.2% in 9M 2022. The increase in the Company’s NPM was supported by an increase in gross profit margin for the quarter.
Madinet Masr recorded a net profit of EGP 773.2 million for Q3 2023, up by 151.0% y-o-y. The Company’s NPM booked 34.5% for the quarter, up from 25.4% in Q3 2022.
Balance Sheet
Cash & Cash Equivalents
On the balance sheet front, Madinet Masr held cash and cash equivalents of EGP 1,759.5 million excluding customer maintenance deposits as of 30 September 2023, down 4.2% from EGP 1,836.8 million at the close of 2022, primarily due to the repayment of a syndicated loan.
Debt
As of 30 September 2023, Madinet Masr had outstanding debt of EGP 2.2 billion, down 31.3% from the of EGP 3.2 billion booked at year-end 2022, due to the full repayment of a syndicated loan. The Company’s debt/equity ratio stood at 37.6% as of 30 September 2023, a decrease from the level of 66.2% posted at the close of 2022. Net debt came in at EGP 455.7 million as of 30 September 2023, down from EGP 1.4 billion at the close of 2022. Madinet Masr recorded a net debt/EBITDA ratio of 0.2x as of 30 September 2023, down from 1.2x as of 31 December 2022. The Company’s strategy is to optimize efficient utilization of borrowing to support growth and manage financial risk.
Notes Receivable
Madinet Masr held EGP 4.2 billion in net notes receivable at the close of 9M 2023, of which EGP 2.2 billion were short-term receivables, EGP 1.7 billion long-term receivables and EGP 267.3 million were due from customers. Total accounts and notes receivable as of 30 September 2023, including off-balance sheet PDCs for undelivered units amounted to EGP 24.9 billion, up 75% from EGP 14.2 billion as of 31 December 2022. The Company closed an EGP 805 million securitization transaction during the first quarter of the year, bringing its cumulative gross securitized receivables to EGP 1.6 billion as of 30 September 2023. Receivables to net debt stood at 9.1x by the end of 9M 2023, up from the 2.8x recorded at year-end 2022.
PP&E
PP&E, fixed assets under construction, and property investments booked EGP 61.9 million at the close of 9M 2023, up from the EGP 57.0 million booked at the close of 2022.
Recent Corporate Developments
• In January 2023, Madinet Masr introduced an investment opportunity in real estate known as “SAFE” (Secure Assets for Fixed Earnings), which allows “fractional property ownership” in real estate at attractive prices.
•
In February 2023, Madinet Masr signed a Memorandum of Understanding (MOU) with CONSTEC Construction and Design, a leading Egyptian construction company, to carry out construction work worth more than EGP 500 million for The Arena Mall and Cavana located in Sarai.
In March 2023, Madinet Masr successfully closed an EGP 805.5 million securitized bond issuance with EFG Hermes’ investment banking division. The transaction is part of a three-year EGP 3.0 billion securitization program which kicked off in early 2022 with an EGP 300 million bond sale.
In March 2023, Madinet Masr launched the second phase of Club Side in Taj City, recording EGP 1 billion in sales. With a total built-up area of 131,474 sqm, Club Side comprises five phases: four residential phases in addition to a sports club. The total investments for the two phases launched in Club Side are estimated at EGP 3.6 billion.
In March 2023, Madinet Masr launched the first phase of Rai in Sarai. Rai offers a diverse range of unit types and the first phase introduced S-villas ranging in size from 212-239 sqm and 160 sqm townhouses.
In March 2023, the Company rebranded from Madinet Nasr for Housing & Development to Madinet Masr, in line with its redefined growth-driven strategy to expand national and regionally. The new name represents the heritage, excellence and stability that have defined the Company’s past and will shape the next era of its growth.
In June 2023, Madinet Masr initiated its nationwide expansion strategy with the launch of Zahw in West Assiut. Zahw has a total area of 104 acres and encompasses more than 1,250 residential units. The first phase included 297 units of varying sized on a total built-up area of 63,000 sqm.
In June 2023, the Company launched the first phase of Elan, its latest project in Sarai. Elan features over 2,800 diverse units including apartments, penthouses, lofts, and duplexes with a total built-up area of 347,043 sqm.
In July 2023, Madinet Masr signed a MOU with Misr Engineering Development Company (MEDCOM) to execute infrastructure work for several projects in Taj City with a total investment of EGP 1 billion.
In August 2023, the Company launched its new R&D arm “Madinet Masr Innovation Labs” to bring forth new innovative concepts to the real estate market. The Company’s first product “Touba” offers customers innovative solutions for purchasing and investing in real estate.
In September 2023, Madinet Masr signed a MOU with ASEC Automation, a subsidiary of Qalaa Holding, to develop the infrastructure and road network for Sarai’s Cavana project in New Cairo.
In September 2023, Madinet Masr launched its latest project in Taj City “Origami” a signature community by Minka featuring a diverse range of residential units spanning 434,284 sqm.
— Ends —
Income Statement
(EGP 000) Q3 2023 Q3 2022 Change 9M 2023 9M 2022 Change
Net Revenues 2,242,470.6 1,210,663.9 85.2% 4,442,028.7 3,001,371.6 48.0%
Cost of Revenues (737,718.1) (527,163.5) 39.9% (1,557,707.8) (1,770,540.5) -12.0%
Gross Profit 1,504,752.4 683,500.4 120.2% 2,884,320.8 1,230,831.1 134.3%
Less:
Sales & Marketing Expense (414,778.9) (181,790.3) 128.2% (887,832.0) (395,477.8) 124.5%
General & Administrative Expenses (47,687.9) (36,301.6) 31.4% (135,263.7) (94,547.1) 43.1%
Other Operating Expenses (14,590.7) (11,020.0) 32.4% (27,670.8) (30,247.2) -8.5%
Interest Expense (85,315.2) (76,694.1) 11.2% (238,276.0) (223,990.8) 6.4%
Provisions (7,800.0) (10,000.0) -22.0% (15,693.0) (10,000.0) 56.9%
Add:
Provisions No Longer Required – (15,000.0) -100.0% – 55,000.0 -100.0%
Reversal of Expected Credit Loss (Net) – – – – – –
Interest Income 40,127.3 37,172.4 7.9% 104,376.5 90,611.2 15.2%
Other Operating Income 30,099.4 24,086.9 25.0% 85,875.6 77,978.4 10.1%
Operating Profit 1,004,806.4 413,953.7 142.7% 1,769,837.5 700,157.8 152.8%
Income from Financial Assets Held at Fair Value (Other Comprehensive Income) 237.8 – – 473.1 222.2 112.9%
Income from Financial Assets – Amortized Cost – – – 41.7 40.3 3.5%
Other Expenses (6,180.5) (3,232.3) 91.2% (14,746.5) (7,978.1) 84.8%
Net Profit Before Tax 998,863.7 410,721.4 143.2% 1,755,605.9 692,442.2 153.5%
Income Tax (271,542.6) (121,526.4) 123.4% (435,584.4) (167,151.9) 160.6%
Deferred Tax 45,869.9 18,856.4 143.3% 37,876.0 19,682.4 92.4%
Net Profit for the Period 773,191.0 308,051.3 151.0% 1,357,897.4 544,972.7 149.2%
Balance Sheet
(EGP 000) 30-Sep-23 31-Dec-22 Change
Assets
Noncurrent Assets
Fixed Assets (Net) 34,612.5 35,002.9 -1.1%
Right-of-Use Assets 77,156.7 97,597.5 -20.9%
Fixed Assets Under Construction 24,968.7 19,612.2 27.3%
Intangible Assets 6,823.4 3,749.6 82.0%
Due from Related Parties 511,846.6 – –
Investments in Subsidiaries 280,462.7 78,957.3 2.6
Investments in Subsidiaries – Down payment 175,000.0 (1.0)
Financial Assets at Amortized Cost 122.0 122.0 0.0%
Financial Assets at Fair Value – Other Comprehensive Income 27,542.1 27,542.1 0.0%
Real Estate Investments 2,353.2 2,383.7 -1.3%
Long-Term Notes Receivable (Net) 1,719,898.9 1,759,337.4 -2.2%
Deferred Tax 65,855.5 27,979.5 135.4%
Total Noncurrent Assets 2,751,642.1 2,227,284.1 23.5%
Current Assets
Materials Inventory – – –
Lands and Real Estate Units under Construction 5,407,276.0 5,277,852.0 2.5%
Completed Real Estate Units 275,300.7 265,056.6 3.9%
Short-Term Notes Receivable (Net) 2,166,095.4 1,770,428.9 22.3%
Due from Customers (Net) 267,273.6 420,323.0 -36.4%
Due from Suppliers (Net) 372,696.1 241,888.7 54.1%
Debtors and Other Debit Balances 1,008,766.0 1,434,892.8 -29.7%
Financial Assets at Fair Value through Profit or Loss 2,574.7 2,314.3 11.3%
Financial Assets at Amortized Cost – Treasury Bills 1,036,707.9 963,623.2 7.6%
Due from Related Parties 361,893.0 78,745.8 359.6%
Due from Management, Operations & Maintenance at Residential Developments – – –
Cash & Cash Equivalents 720,210.8 870,893.2 -17.3%
Total Current Assets 11,618,794.2 11,326,018.5 2.6%
Total Assets 14,370,436.3 13,553,302.6 6.0%
Liabilities & Shareholders’ Equity
Shareholders’ Equity
Issued and Paid-In Capital 2,135,000.0 2,100,000.0 1.7%
Legal Reserve 373,144.2 335,772.3 11.1%
Retained Earnings 1,934,062.3 1,664,460.0 16.2%
Net Profit for the Period 1,357,897.4 747,436.4 81.7%
Share Premium 71,400.0 – –
Other Comprehensive Income 23,027.9 23,027.9 –
Total Shareholders’ Equity 5,894,531.8 4,870,696.7 21.0%
Noncurrent Liabilities
Long-Term Notes Payable (Net) 133,812.8 154,348.8 -13.3%
Long-Term Loans 1,082,054.5 1,201,559.7 -9.9%
Long-Term Liabilities – Land Development 138,067.0 299,954.0 -54.0%
Long-Term Lease Liabilities 49,529.9 72,382.9 -31.6%
Total Noncurrent Liabilities 1,403,464.2 1,728,245.3 -18.8%
Current Liabilities
Advances from Customers for Undelivered Units 3,093,805.5 2,764,048.9 11.9%
Provisions 97,486.7 82,148.0 18.7%
Due to Related Parties 5,159.6 5,028.0 2.6%
Due to Suppliers 374,833.1 478,318.1 -21.6%
Completion of Infrastructure Liabilities 304,982.3 153,641.8 98.5%
Dividend Payable 157,500.0 – –
Creditors and Other Credit Balances 1,215,164.7 962,328.8 26.3%
Due to Management, Operations & Maintenance at Residential Developments 5,642.3 7,507.4 -24.8%
Current Portion of Long-Term Debt 236,077.3 1,112,711.2 -78.8%
Short-Term Loans 700,000.0 741,032.2 -5.5%
Banks – Credit Facilities 197,054.2 171,129.8 15.1%
Short-Term Lease Liabilities 30,895.3 23,104.0 33.7%
Short-Term Liabilities – Land Development 193,687.5 208,806.6 -7.2%
Tax Authority 460,151.7 244,555.9 88.2%
Total Current Liabilities 7,072,440.2 6,954,360.7 1.7%
Total Liabilities 8,475,904.4 8,682,606.0 -2.4%
Total Liabilities and Shareholders’ Equity 14,370,436.3 13,553,302.6 6.0%
About Madinet Masr
Since 1959, Madinet Masr has served the housing needs of millions of Egyptians. Initially founded to develop master projects for the Cairo district of Nasr City, home to three million residents, Madinet Masr has grown into a premier real estate developer and has become one of the country’s most recognizable real estate brands. Madinet Masr was listed on the Egyptian Exchange in 1996, capitalizing on a long and successful track record of delivering world-class housing and infrastructure projects to broaden its exposure to various target segments of the Egyptian real estate market. Anchored in the Greater Cairo Area and with a growing presence in other regions of Egypt, the Company holds a land bank of over nine million square meters (sqm).
Madinet Masr had 22 active projects across three developments at the close of Q3 2023: Taj City, a 3.6 million sqm mixed use development positioned as a premier cultural destination, Sarai, a 5.5 million sqm mixed use development strategically located near Egypt’s New Administrative Capital between Cairo and Suez, and Zahw, a 104-acre mixed use development strategically positioned in west of Assiut Governorate beside Assiut’s airport and 15-minute away from its center. Zahw compliments the contemporary real estate products in Upper Egypt and is Madinet Masr’s first expansion project outside of Cairo Governorate.
Forward Looking Statements
The information, statements and opinions contained in this Presentation do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of any offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. Information in this Presentation relating to the price at which investments have been bought or sold in the past, or the yield on such investments, cannot be relied upon as a guide to the future performance of such investments.
This Presentation contains forward-looking statements. Such forward-looking statements contain known and unknown risks, uncertainties and other important factors, which may cause actual results, performance or achievements of Madinet Masr (the “Company”) to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future.
None of the future projections, expectations, estimates or prospects in this Presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects are based are accurate or exhaustive or, in the case of the assumptions, entirely covered in the Presentation. These forward-looking statements speak only as of the date they are made and, subject to compliance with applicable law and regulation, the Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in the Presentation to reflect actual results, changes in assumptions or changes in factors affecting those statements.
The information and opinions contained in this Presentation are provided as of the date of the Presentation, are based on general information gathered at such date and are subject to changes without notice. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. Subject to compliance with applicable law and regulation, neither the Company, nor any of its respective agents, employees or advisers intends or has any duty or obligation to provide the recipient with access to any additional information, to amend, update or revise this Presentation or any information contained in the Presentation.
Certain financial information contained in this presentation has been extracted from the Company’s unaudited management accounts and financial statements. The areas in which management accounts might differ from International Financial Reporting Standards and/or U.S. generally accepted accounting principles could be significant and you should consult your own professional advisors and/or conduct your own due diligence for complete and detailed understanding of such differences and any implications they might have on the relevant financial information contained in this presentation. Some numerical figures included in this Presentation have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in certain tables might not be an arithmetic aggregation of the figures that preceded them.
