Development profits for real estate investment rise 69% in 9 months

The consolidated financial statements of development  Real Estate Investment Company revealed that its profits increased by 69% during the first 9 months of this year.

According to the financial statements sent to the stock exchange today, the company recorded a net profit of 15.42 million pounds during the period from January until the end of September 2023, compared to a net profit of 9.12 million pounds in the same period last year, taking into account minority rights.

The company's revenues increased during the first six months of this year to 15.91 million pounds, compared to 13.15 million pounds in the corresponding period of 2022.

Regarding the unconsolidated lists, the independent company’s profits rose to 10.67 million pounds during the first half of this year, compared to 6.02 million pounds in the same period last year.

Tanmia Real Estate Investment Company achieved a net profit of 8.72 million pounds during the period from January until the end of June 2023, compared to a net profit of 6.12 million pounds in the same period last year, taking into account minority rights.

The company's revenues increased during the first six months of this year to 9.6 million pounds, compared to 8.83 million pounds in the corresponding period of 2022.

Regarding the unconsolidated lists, the independent company’s profits rose to 6.03 million pounds during the first half of this year, compared to 4.09 million pounds in the same period last year.

Real estate funds

Informed sources revealed the details of the real estate funds scheduled to be launched next year, which included the investment policy and determining the ratios and conditions that must be met in the real estate assets that the fund will deal with.

Real estate investment funds are an indirect investment that aims to attract investments in the real estate sector by collecting money from investors and reinvesting it in various real estate projects, with the resulting profits distributed to investors at a specific rate that is agreed upon.

The sources stated that the investment policy of these funds set 95% for real estate assets of the fund’s total assets, with the percentage of what the fund invests in real estate finance company bonds being 10% of the fund’s net assets, and 15% of the company’s bond issues.

The sources added that the investment policy ensures that the percentage of the fund’s total ownership in shares registered on the stock exchange issued by a company whose assets are mostly real estate or by companies operating in areas related to real estate development does not exceed 20% of the fund’s assets.

The sources noted that the investment of real estate funds in the shares of Egyptian companies not listed on the Egyptian stock exchanges constitutes 80% of its assets as real estate assets, with investment in demand deposits and treasury bills being 30% of the fund’s total assets.

 6conditions

The sources indicated that the conditions that must be met in the real estate assets that the Fund deals with include 6 conditions:

The first of which is that these assets must not be the subject of a dispute or have cases raised regarding them, whether they are registered in the real estate registry or not, or for which a valid allocation decision has been issued by one of the competent authorities in the country.

The conditions include that these assets have planning or building approval with a certificate from the competent authorities, and that these assets are evaluated by one or more real estate appraisal experts registered with the Financial Supervision Authority, provided that they are independent from each other and from the relevant parties.

The conditions also guarantee that the credit rating of the bonds and securitization bonds in which the fund invests is not less than the limit specified by the Board of the Authority , that the assets invested in are insured, and that the geographic distribution of the fund’s asset investments does not include any assets in the North and South Sinai governorates.