Bonyan reports strong 1Q 2026 results supported by continued lease repricing, more than doubling total revenues year-on-year, strong sales activity and a 65% increase in cash flow from operations, reflecting the Company’s solid operational execution and value creation across its portfolio, Invest-Gate reports.
CEO’s Comment
“Bonyan delivered a strong start to 2026, supported by continued lease repricing, sustained occupancy levels of 97%, and resilient demand for high-quality commercial assets across Greater Cairo.
During the quarter, the Company recorded a 106% year-on-year increase in total revenues. This growth was driven by management’s strategic decision to restart sales activities at Walk of Cairo, which followed the recent conversion of the basement license to incorporate additional sellable area.
As a result, the Company successfully sold four units totaling 1,573 sqm. Rental revenue performance also contributed strongly, supported by repricing initiatives, contractual escalations, and the signing of lease agreements with Nestlé Egypt at Golden Gate Building A5 and Kortech at Building 106B.
The quarter also reflected Bonyan’s ability to translate operational momentum into stronger profitability and cash generation, with EBITDA increasing by 48% year-on-year, net income growing by 42%, and cash flow from operations rising by 65% during the period. These results continue to reinforce the strength of the Company’s operating platform and the quality of its underlying portfolio.
In parallel, Bonyan continued to unlock value across its investment property portfolio through active asset management and independent asset valuations, contributing to further growth in the fair market value of the Company’s assets during the quarter.
Looking ahead, management remains confident in the Company’s outlook, supported by significant embedded rental upside across the portfolio, with c.40% of EGP-denominated leases expected to rerate during 2026. Together with the planned monetization of the remaining inventory portfolio, these drivers are expected to further support earnings growth, cash flow generation, and long-term value creation for shareholders.”
Financial Highlights 1Q 2026
▪ Total Revenues increased by 106% year-on-year to reach EGP 370 million in Q1 2026, driven by continued growth in rental income alongside a significant increase in sales revenues.
Rental Revenues grew by 18% year-on-year, supported by lease repricing, contractual escalations, and newly signed leases.
This growth was further supported by management’s strategic decision to resume sales activities at Walk of Cairo following the temporary halt during the previous year. Additionally, the recent conversion of the Walk of Cairo basement license, increased the sellable area within the project.
The Company successfully sold four units totaling 1,573 sqm during the quarter, with an aggregate contracted sales value of EGP 218 million on an installment basis, resulting in total sales revenues recognized during the period of EGP 175 million1, reflecting the present value of the contracted sales.
▪ Gain in Fair Market Value in Q1 2026 reached EGP 800 million, representing a 52% year-on-year increase, driven by the continued appreciation in the fair value of the Company’s investment property portfolio as assessed by an independent third-party valuer, primarily due to the impact of higher inflation levels during the quarter.
▪ Net Income increased by 42% year-on-year, supported by continued growth in rental revenues, strong sales activity, and the appreciation in the fair value of the Company’s investment property portfolio.
▪ Cash Flow from Operations increased by 65% year-on-year to EGP 193 million in Q1 2026, compared to EGP 117 million in Q1 2025, mainly driven by continued lease repricing, contractual rental escalations, and the sale of four units in Walk of Cairo during the quarter.
Operational Highlights
▪ The Company successfully renewed lease agreements with six existing tenants during the quarter, including four tenants at Walk of Cairo, repriced at rates 63% higher than previous legacy rental levels, reflecting the continued strength in demand for the Company’s assets and its ability to unlock embedded rental upside across the portfolio.
▪ The Company also signed lease agreements with seven new tenants across its portfolio during Q1 2026, further supporting occupancy levels and strengthening the income base.
Notably, lease agreements were signed with Nestlé Egypt for the full lease of Golden Gate Building A5, comprising 6,888 sqm, following the recent delivery of the asset. In addition, the lease agreement signed during the quarter with Kortech, a Hassan Allam subsidiary, at Building 106B reflects a substantial uplift versus the prior legacy rental rate.
▪ During the quarter, the Company completed the sale of four units at Walk of Cairo totaling 1,573 sqm, with an aggregate contracted sales value of EGP 218 million on an installment basis. This follows the recent conversion of the Walk of Cairo basement license to include 2,283 sqm of retail/administrative space and 9,440 sqm of storage space, creating additional sellable inventory within the asset.
Income Statement Highlights 1Q 2026
• Rental revenues1 increased by 18.0% year-on-year to EGP 196 million in Q1 2026, driven by the repricing of expired leases at higher rental rates and contractual annual escalation clauses across the portfolio.
During the quarter, six existing tenant contracts were repriced at rates 63% higher than previous legacy rental levels, while overall c.40% of the previous year’s EGP-denominated leases are expected to rerate during 2026 at high double-digit growth compared to expiring levels.
• Sales Revenues from Walk of Cairo Units: During the quarter, management took the strategic decision to resume sales activities at Walk of Cairo following the temporary suspension of sales during the previous year.
This follows the recent conversion of the Walk of Cairo basement license. As a result, four units totaling 1,573 sqm were sold during the period, with an aggregate contracted sales value of EGP 218 million on an installment basis, resulting in total sales revenues recognized during the period of EGP 175 million2, reflecting the present value of the contracted sales.
Three of the sold units were located at the basement/gallery level, comprising one office unit and two storage units, while the fourth unit was an office unit located on the mezzanine floor.
• Rental Revenues COGS: In Q1 2026, operating COGS as a percentage of rental revenue remained broadly in line with the corresponding period last year at 22%.
• Sales COGS: During the quarter, units previously classified as investment properties were sold and recognized at a fair market value of EGP 154 million rather than a historical cost of EGP 8.7 million, that resulted in a gross profit margin decline to 45% in Q1 2026 from 79% in Q1 2025, despite selling them above their recorded fair market value. If these units were booked at historical cost, the quarter’s gross profit would have amounted to EGP 311 million, reflecting a gross margin of 84%.
• Acquisitions Interest Expense recorded EGP 7.3 million in Q1 2026, representing the interest component associated with the installment-based acquisition of the Golden Gate and Park St. West assets. This expense reflects the difference between the recognized present value of the acquisition and the full installment value, distributed over the tenor of the installment schedule.
• Total SG&A as a Percentage of Revenues decreased from 29% in Q1 2025 to 15% in Q1 2026, primarily due to the absence of one-off IPO expenses recorded in the prior-year period.
• Gain in Fair Market Value in Q1 2026 reached EGP 800 million, representing a 52% year-on-year increase. This growth reflects higher inflation rates during the quarter, in addition to the continued appreciation in the fair value of the Company’s investment property portfolio, as assessed by an independent third-party valuer.
• Deferred Taxes recorded EGP 240 million in Q1 2026, representing a non-cash item arising from unrealized fair value gains on investment properties, which become payable only upon the disposal of the underlying assets.
Balance Sheet Highlights March 2026
▪ Investment Properties increased by 4% to EGP 16,174 million as of March 2026, compared to EGP 15,488 million in December 2025, reflecting the continued appreciation in the fair value of the Company’s portfolio, as assessed by an independent third-party valuer.
The reported investment properties balance currently includes 9 out of the Company’s 10 assets, as the Park Street Edition asset is yet to be delivered.
▪ Sales receivables increased from EGP 349 million in December 2025 to EGP 456 million as of March 2026, driven by the sale of Walk of Cairo units on an installment basis during the period.
▪ Total Debt decreased from EGP 982 million in December 2025 to EGP 925 million as of March 2026, reflecting continued repayment of outstanding debt obligations. As of March 2026, the Company’s bank debt-to-equity ratio stood at 7.2%, while its loan-to-value (LTV) ratio was 5.7%.
▪ Total Equity increased by 5%, primarily driven by continued growth in retained earnings, which rose by 6% from EGP 9,823 million in December 2025 to EGP 10,416 million as of March 2026.