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PHDC - Palm Hills Developments News Story

$5.1 0.0  0.0%

Last Trade - 04/04/18

Sector
Financials
Size
Micro Cap
Market Cap £14.6m
Enterprise Value £215.1m
Revenue £237.1m
Position in Universe th / 1827

UPDATE 2-Egypt's Palm Hills doubles profit as wealthy Egyptians flee crowded Cairo

Sun 7th February, 2016 2:29pm
* Suburban migration, summer homes lead to record pre-sales 
    * Company plans to sell some or all of Saudi land bank 
    * Plans bonus share issue, cash dividend 
 
 (Recasts, adds Co-CEO interview) 
    By Ahmed Aboulenein 
    CAIRO, Feb 7 (Reuters) - Palm Hills  PHDC.CA , Egypt's 
second-largest listed property developer, more than doubled its 
fourth-quarter net profits in 2015 as Egyptians fleeing the 
congested capital for newer suburbs and coastal summer homes 
drive up demand for housing. 
    The company reported on Sunday a 128 percent rise in 
fourth-quarter net profits to 203.5 million Egyptian pounds 
($25.99 million) from 89.2 million pounds in the same period 
last year. 
    It almost tripled its full-year profits, posting a 
192-percent rise in net profit to 1.03 billion pounds in 2015. 
    As projects come to market, Palm Hills is also proposing to 
offer its first cash dividend, 0.15 pounds per share, and issue 
one bonus share for each 20 shares held. 
    "We are actively working on 13 projects that will be 
completed in 2017 and 2018; we are at a stage where these 
projects are yielding more cash than they need," Co-Chief 
Executive Tarek Abdel Rahman told Reuters in a phone interview. 
    Pre-sales for the year have broken the 6 billion Egyptian 
pounds mark for the first time, growing 61 percent to 6.3 
billion. 
    Palm Hills made 1.9 billion pounds worth of pre-sales in its 
east Cairo developments and 2.4 billion in the west, said Abdel 
Rahman. Demand in the east was higher, he added, but the company 
did not possess the inventory to meet it. 
    To address that, the company signed an agreement with the 
government to co-develop an integrated residential community in 
east Cairo spreading over 2.1 million square metres, he said. 
    The company has a number of luxury developments in affluent 
suburbs including New Cairo, 6 October and Sheikh Zayed. 
    It also has three projects in Egypt's North Coast where 
upper class Egyptians buy summer homes. These contributed about 
a third of pre-sales or 2 billion pounds, Abdel Rahman said. 
Construction will be completed in 2017-2018. 
    Palm Hills was also trying to sell all or part of five 
million metres of land that it owns in Saudi Arabia, he said. 
    Palm Hills posted revenue of 957.2 million pounds in the 
fourth-quarter versus 777.5 million pounds in 2014. Full-year 
revenue was 3.56 billion pounds versus 2.1 billion in 2014. 
    The company expects to spend 2 billion pounds on 
construction in 2016 and achieve gross sales of 6.5 billion 
pounds, delivering about 1,600 units. Abdel Rahman declined to 
give a 2016 profit outlook. 
    Palm Hills is also in negotiations with the government to 
co-develop 42 million square metres in west Cairo and expects to 
reach an agreement by mid-2016. 
    ($1 = 7.8300 Egyptian pounds) 
 
 (Editing by Lin Noueihed and Susan Thomas) 
 ((ahmed.aboulenein@thomsonreuters.com; +20 2 2394 8097; Reuters 
Messaging: ahmed.aboulenein.thomsonreuters.com@reuters.net)) 
 
Keywords: PHD RESULTS/

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