Madinet Nasr S Regulatory News (MNHD)

Madinet Nasr Housing & Development announces results for FY 2018, net profit exceeds the EGP 1 billion-mark, for the first time ever, on the back of robust revenue growth and bottom-line margin expansion

MNHD delivers a record 788 units, up 46% year-on-year, boosting its grand total of units delivered in Tag Sultan and Primera to 1,907 units, to date.

Madinet Nasr Housing & Development (EGX: MNHD.CA, "MNHD"), a leading urban developer in Egypt, announced today its results for the year ending 31 December 2018, reporting consolidated revenues of EGP 2.78 billion, representing a healthy y-o-y growth of 14.6% compared to EGP 2.43 billion booked at year-end 2017. Deliveries continued to grow during FY 2018, underpinning a 19.0% y-o-y increase in MNHD's consolidated net profit to EGP 1.11 billion from EGP 933.1 million in FY 2017. At year-end 2018 MNHD's net profit margin stood at 39.9% as against 38.4% a year previously, up 1.5 percentage points.

Presales grew by 7% y-o-y from EGP 5.1 billion in FY 2017 to record EGP 5.5 billion for FY 2018. Growth in presales for the year was largely driven by successful launches at MNHD's Taj City and SARAI developments, as well as a marked acceleration in launches at Tag Sultan during the final quarter of the year. Total unit sales (excluding land plots) stood at 2,074 by year-end 2018, up from 1,978 in FY 2017. The year also saw a growth in construction spend to EGP 992 million versus EGP 915 million in FY 2017.

On a standalone basis, MNHD recorded revenues of EGP 2,380.5 million for FY 2018, representing a y-o-y expansion of 12.3% from EGP 2,118.9 in FY 2017. Standalone net profit climbed 13.2% y-o-y to post EGP 1,067.7 million for the year, up from EGP 943.3 million in FY 2017 and yielding an improved net profit margin of 44.8% from 44.5% in FY 2017.

Presales at Taj City amounted to EGP 2,575.0 million for FY 2018, representing 1,161 units - a significant increase on the 612 units presold during FY 2017. Spread over 3.5 million square meters, Taj City is a gated integrated urban community that boasts vast green spaces within the heart of Cairo, offering both the conveniences of city life and the comforts of suburban living. Once completed, the c.EGP 100 billion Taj City project will boast a wide variety of high-end residential communities, medical facilities, an international school and commercial areas with restaurants, shopping malls, an exhibition center and other attractions.

MNHD's SARAI development witnessed a number of market launches during FY 2018, including the Cavana Lakes sub-development, which boasts SARAI's first standalone units, and a number of expansions at existing launches. SARAI is located directly on the Cairo-Suez road in close proximity to the New Administrative Capital, offering residents a highly sought-after mix of urban-suburban exposure. Total presales at the development amounted to EGP 2,324.7 million during FY 2018, representing 789 units.

 "MNHD's performance during the year is a vindication of the strategy we have chosen to pursue over recent years," said MNHD CEO Ahmed El Hitamy. "The company's single-minded focus on efficiency has allowed us to significantly ramp up construction and complete more deliveries than ever while maintaining excellent bottom-line performance. Margin expansion remains robust, reflecting the culture of efficiency we have sought to instill in our teams, the careful approach we take to selecting and working with partners, as well as the high quality our customers have come to expect when purchasing an MNHD property," he added.

"Moving forward, MNHD will continue to offer superior residential products while venturing into the non-residential component of Taj City for the first time since its commercial launch in 2012," El Hitamy concluded.

In total, MNHD has more than 10,000 units under development/design across eight key phases/projects in the Greater Cairo Area, offering exposure to a broad socioeconomic spectrum of consumers.

MNHD's FY 2018 audited standalone and consolidated financial statements are now available for download on www.mnhd.com.

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Madinet Nasr Housing & Development (MNHD) is a leading Egyptian urban developer. Since inception, the company has initiated and completed a number of key developments, including the majority of the Nasr City district in the Greater Cairo Area, which covers an area of more than 40 million square meters and is home to 3 million people. MNHD's land bank includes 3.5mn sqm in a prime location inside Cairo across from Cairo International Airport and 5.5mn sqm in a strategic location on the Suez Road. You can learn more about us on our website at mnhd.com.

Ahmed El Hitamy

CEO

MNHD

4, Youssef Abbas St.

Nasr City, Cairo

Tel: +2 (02) 2400-6207

aelhitamy@mnhd.com

Salah Katamish

Director of Investor Relations

MNHD

4, Youssef Abbas St.

Nasr City, Cairo

Tel: +2 (02) 2400-6207

skatamish@mnhd.com