operational performance
Operational and Financial Performance
2022 was a transformative year for Madinet Masr as we delivered outstanding operational and financial results, demonstrating the success of our Company’s growth strategy. Results were driven by record-breaking gross contractual sales, new project launches, rapid growth in unit deliveries, and extensive portfolio cleanup measures.
Operational Review
Gross Contracted Sales
In 2022, we delivered record-breaking gross contracted sales of EGP 11,236.0 million, up 224.4% y-o-y. Approximately 56.3% of gross contracted sales for 2022 were recorded at Taj City, while 43.7% were generated at Sarai. In terms of units, we sold a total of 3,215 units in 2022, up 199.3% y-o-y, of which 1,497 units were in Taj City and 1,718 units were in Sarai. Sales during the year were boosted by the launch of three new projects in Taj City; Taj Ville in April, Elect in July, and Clubside in November, which recorded sales of EGP 1,019 million, EGP 1,335 million, and EGP 714 million, respectively.
Deliveries
During the year, we delivered a total of 2,070 residential units across our two developments, up from the 1,030 deliveries recorded the year before. Deliveries were largely on schedule, and the rapid increase in handovers during the period reflects our ability to deliver efficiently on our construction pipeline. The period’s deliveries were led by Sarai and were boosted by sales of ready-to-move inventory. In 2022, we completed 558 handovers at Taj City and 1,488 handovers at Sarai, up 3.0% and 333.8% y-o-y, respectively. Meanwhile, we also booked 24 handovers at Nasr Gardens, a subsidized housing project, down from 145 in 2021.
CAPEX
We deployed construction and infrastructure CAPEX of EGP 1,800.7 million during 2022 compared to EGP 2,385.9 million in 2021, with construction and infrastructure amounting to EGP 794.6 million at Taj City and EGP 855.4 million at Sarai. Meanwhile, construction and infrastructure at other projects booked EGP 150.7 million during the year. The year-on-year decline in CAPEX compared to 2021 comes following the completion and delivery of several construction projects at Park Residence in Taj City, as well as Taval and Croons in Sarai.
Cash Collections
In 2022, cash collections reached EGP 3,564.0 million, up 21.3% y-o-y. This saw the cumulative delinquency rate fall to 2.9% in 2022 from 6.0% in 2021, reflecting our continued efforts in purging our receivables portfolio from non-performing contracts.
Ready-to-Move-Inventory
Approximately 25% of gross contracted sales for 2022 were sales of ready-to-move inventory. Sales were primarily driven by Park Residence at Taj City, as well as Taval and Croons at Sarai. Meanwhile, off-plan sales accounted for 75% of gross contracted sales for the year, mainly at Taj City’s Shalya, Taj Ville, and Taj Gardens, in addition to Sarai’s Croons and Cavana.