CAIRO: Egyptian real estate developer Palm Hills Developments posted a 75 increase in net income to reach LE 107.1 million ($19.4 million) for the first quarter of 2010, the firm said in a statement Sunday.
PHD said it recorded net sales of LE 198.0 million ($35.9 million) in the three months ending March, a 52 percent rise over the past year “on the back of growing sales and newly recognized built-up areas.”
The first quarter’s earnings also include a new recurring revenue contribution from hotel and tourism operator Macor, in which PHD acquired a majority stake in late February 2010, the statement read.
“The acquisition of Macor was a key component of our drive to see 30 percent of our revenues derived from recurring sources in the medium term,” said Palm Hills Developments Chief Executive Officer Yasseen Mansour.
Mansour said the developer will announce plans for the retail and education sectors later this year.
“Also significant in the last quarter was the signing of our strategic partnership agreement with Burooj Properties, which will purchase 425 units of Village Garden Katameya and on-sell them to Egyptian expats living in the Gulf,” Mansour said.
Reservations rose in the first quarter while cancellations continued to decline, he added, saying: “We are…now confident that 2010 marks a clear break with the market-wide challenges of last year.
“Our emphasis going forward will continue to be on the rapid roll-out of new projects; the development of our sales force in Egypt, the Gulf and Europe.”