Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
As opposed to previous years that were riddled with big project launches and land acquisitions, 2019 was a quiet year with limited project launches and virtually no land replenishment. Indeed, as we had mentioned in our Real Estate 2019 Valuation Update Report last year, 2019 really did turn out to be a “calmer year.†This calmness is portrayed by a set of different factors: 10-15% increase in selling prices compared to the 30-40% increases during years prior to 2018, no extension in install...
We met with seven real estate companies at our annual investor conference where we were updated on the latest developments in the real estate sector. This relatively quiet year is witnessing a more inflation-dictated growth of 10-15% instead of the 30-50% growth witnessed over the past five years. In light of this subdued residential performance, developers are shifting their focus to commercial real estate.
Sales in Q1 19 rose 8.7% yoy and 4.1% qoq to EGP1.7bn, supported by residential units in Taj City and SARAI, and the launch of the company’s first office park, Cobalt Business District. Revenue in Q1 19 was disappointing, portraying a marginal annual increase and a bigger sequential drop, on the back of few deliveries, typical of the company’s first quarter delivery performance.
We maintain our Overweight recommendation of Madinet Nasr for Housing and Development (MNHD) based on our FV of EGP10.50/share, which is mainly supported by the company’s 6.0 million sqm of residual land, constituting 62.7% of our total valuation.
2018 was a year that witnessed the continuation of sector trends that had emerged the year before, such as the decrease in unit size and the average seven-year installment schedule. What changed in 2018 was the magnitude of price appreciation and the rise of competition. In contrast to 2017 that had witnessed price increases of 30.0-40.0%, prices increased by 10.0-15.0% in 2018, in line with our previous assumption of 10.0% price growth in 2018. A key theme that echoed throughout the sector in 2...
​We updated our valuation for MNHD, as the company`s dynamics have changed significantly. We currently value MNHD based on a SoTP-DCF methodology with only 20% of both residual land plots in Sarai and Taj City being valued on a NAV basis, as such land plots will be dedicated to the establishment of commercial properties, hence turning MNHD towards becoming a cities` developer, fully equipped with all modern amenities.
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