Another company joins the celebration of income in 2021: Kardan Real Estate published its concluding report today (Wednesday) – and shows a record sales of apartments, a significant increase in net profit and of course an increase in income, which is almost 40% higher than in 2020.
As stated, the company recorded an all-time record for its sale of apartments and income from them, which reached NIS 424 million in 2021, thanks to the sale of 236 housing units. In 2020, the company sold 104 housing units, and in 2019, it sold 83 housing units.
Of all the projects in which Cardan sold apartment real estate in the past year, the Cardan project in Beer Yaakov stood out, which contributed about 23% to total revenues from the sale of apartments, a rate that reflects a total of NIS 100.5 million. For comparison, in 2020 the company Income of about NIS 41 million from the sale of apartments in this project.
The “Cardan in Beer Yaakov” project includes the construction of a total of 405 housing units, of which 324 are units of Cardan Real Estate, in ten buildings – construction that is conducted in four phases. The first three phases of the project, with 312 housing units in six buildings, have already been completed, and Phase 4, with 93 housing units (of which Cardan’s 75) is currently under construction, and the company’s revenues in 2021 will only come from it.
The company estimates that at this stage alone it will have a total gross profit of about NIS 46.8 million. By the end of 2021, Cardan Real Estate sold 70 apartments in it, and from the beginning of the current year it sold four more, so in fact there is only one apartment left that has not been sold so far in Phase D. The construction of the project will be completed, according to planning, this year.
Revenues in 2021: about NIS 653 million
The data presented by Cardan Real Estate in the concluding report for 2021 show that along with the high income from the sale of apartments, its total income also increased – to an amount of almost NIS 653 million, which reflects an increase of 38% compared to income in 2021. Net income attributed to shareholders Kardan Real Estate in 2021 increased 2.4 times, to about NIS 81.6 million.
The company’s shareholders’ equity at the end of 2021 was about NIS 605 million (about NIS 602 million is attributed to shareholders). The expected gross profit from residential projects under construction and planning, as well as from land reserves and suspended projects, amounts to about NIS 2 billion. Al-Har subsidiary has accumulated orders totaling about NIS 1.7 billion.
In the coming weeks, the company is expected to complete the sale of its share (50%) in the Nofei Hashemesh project in Beit Shemesh, for NIS 80 million. Upon completion of the sale, the company is expected to recognize a profit before tax in the amount of approximately NIS 50 million. In general, in 2022 the company expects recognition of revenues in the amount of NIS 215 million.
At the time of publication of the report, Kardan Real Estate has 13 projects in Israel, totaling 1,085 housing units in the construction and planning stages. Kardan Real Estate’s share in these projects is 946 housing units. Alongside these, the company has one income-producing structure (Beit Kardan in Tel Aviv), several land reserves for development and eight other projects for the construction of buildings, at various stages of construction, through the Al-Har company.
Amos Dabush, CEO of Cardan Real Estate: “Over the past two years, the company has ‘jumped a step’ in the volume of activity in the residential sector – a trend supported by actions taken in the last two years to increase inventory, along with a supportive business environment with high demand for apartments. In 2021, we purchased plots of land and land for the construction of projects in the amount of thousands of additional housing units, which will gradually mature for implementation and go on the market over the next few years. The company. “