Madinet Nasr Housing and Development’s (MNHD) revenues more than doubled in 2Q 2022 due to a rise in deliveries, it said in its earnings release (pdf) yesterday. The real estate company reported EGP 972.3 mn in revenues for the quarter, up from EGP 441.4 mn in the same period last year after deliveries more than tripled y-o-y. Despite the strong revenue growth, the company reported a 1% decline in net income to EGP 116.7 mn.

Sales hit all-time high: MNHD’s gross contracted sales hit a record EGP 1.78 bn during the quarter after selling 567 units, an indicator that housing demand remains robust despite the economic headwinds hitting consumers’ pockets. Sarai accounted for 70% of all sales, while the launch of its new residential compound Taj Ville in April helped the company double its unit sales in Taj City to 205. MNHD delivered 471 units in 2Q, more than 3x the deliveries recorded in 2Q 2021 and double that of 1Q 2021.“Demand remains strong despite the headwinds, and we have been able to take full advantage of this strength through our stock of ready-to-move inventory, which further offers us a margin of flexibility in the face of an uncertain macro environment,” CEO Abdallah Sallam said.

Looking ahead: The company is preparing for new launches and seeking “new growth opportunities,” Sallam said, without disclosing further details. “We are confident that MNHD will continue to outperform even the strong results that we have already achieved, and that the company will successfully generate growth across its project portfolio,” he said.

SOUND SMART- In real estate, sales ≠ revenues. With off-plan sales dominating the industry, real estate companies book a sale when you sign a contract to buy a home. But they only record (some or all) of the value of the unit it sold you when it (a) delivers the unit to you or (b) hits a percentage completion on a total project. In most cases, then, revenues are composed of sales from past periods, while sales in a given quarter will be recognized as revenues in the future when units are completed or delivered.