Sixth of October Development & Investment Company (SODIC) announces consolidated financial results for the period ending December 31, 2020, Invest-Gate reports.

Gross contracted sales record EGP 7.4 bn which, despite COVID-19 challenges, is a 2% year-on-year (YoY) increase. The company’s residential sales cover EGP 7.2 bn, an increase of 19% YoY.

Cash collection includes EGP 4.3 bn, while gross profit is EGP 1.8 bn, a significant profit registration of 32%. Revenues hit EGP 5.6 bn.

The total operating profit is EGP 1 bn, an operating margin of 18%. Net profit after tax and minority interests covers EGP 820 mn, a net profit margin of 15%.

During the year, SODIC launches second development, Karmell, on the 500-acre plot in New Zayed. Karmell contributes 6% to the company’s 2020 contracted sales. Karmell’s launch follows VYE, SODIC’s first development on the 500-acre plot, which since its launch in December 2019 has generated EGP 3.6 bn in gross sales at the end of 2020.

SODIC aims for gross contract sales of EGP 8.8 bn, a growth representation of 19% compared to 2020 sales. The company expects to deliver approximately 1,200 units and generate a total turnover of roughly EGP 7 bn, while construction costs are expected to be EGP 3.9 bn.

SODIC sells 1,361 units during the year and generates a contracted sale of approx. EGP 7.4 bn, an increase of 2% compared to 2019 gross inbound sales of EGP 7.3 bn. SODIC delivers approximately 1,163 units during the year, compared to the 1,176 units delivered in 2019.

Non-residential housing accounts for only 3% of SODIC’s contracted gross sales in 2020, against 2019’s 17%. The sale of homes amounts to EGP 7.2 bn, an increase of 19% from the EGP 6 bn registered in 2019.

Delinquencies increase during the first half of the year as result of COVID-19 but continued to trend downwards as the situation stabilized and economic activity resumed.

CAPEX spent on construction during the year amount to EGP 3.4 bn., compared to EGP 3.1 bn in 2019.

Revenue of EGP 5.6 bn is recorded in 2020, mainly driven by East Cairo projects Eastown Residences and Villette. The gross profit was approx. 1.8 bn EGP, which implies a gross profit of 32%.

Operating profit of EGP 1 bn recorded for the year, reflecting an operating margin of 18%.

As of year-end 2020 a total of EGP 2.1 bn is invested in properties under development for lease reflecting the company’s strategy to build a sizable recurring income portfolio.

SODIC’s year-end figures for 2020 to reflect a new presentation of advances from customers account, offsetting uncollected post-dated checks received from customers of undelivered units.

Total receivables stood at EGP 15.8 bn of which EGP 4.4 billion are short term receivables, reflecting both on and off-balance sheet post-dated checks.

Commenting on the results, SODIC’s Managing Director Magued Sherif states that it has been a challenging year for everyone, and that they are especially delighted this year, to report a solid set of results for the year 2020 showing strong growth in their residential sales and profitability.

Sherif adds, “We continue steady with our strategy to grow our portfolio of prime assets for future recurring revenues and launching next generation projects in new urban communities. Our dividends proposal attests to our commitment to our shareholders. Our targeted growth for 2021 echoes our confidence in the Egyptian real estate market and reiterates SODIC’s commitment to delivering value.”