The real estate company Damari reports revenues of NIS 308 million in the fourth quarter of 2021 compared to 377 million in the corresponding quarter in 2020. Although more apartments were sold, the sale was made at earlier stages of execution so they have not yet recognized these transactions in the revenue line. Damari sold 298 apartments in the quarter (Company share) in NIS 558 million, compared with 259 apartments in NIS 454 million in the corresponding period in 2020. The average price rose from NIS 1.75 million to NIS 1.87 million. Abroad, Damari sold 18 apartments for NIS 4 million , Compared to 41 apartments at NIS 9 million then.
The company’s reports state that the intention is to start this year at the marketing stage of about 2,700 apartments in 11 cities in Israel. As of the end of the year, Damari is already implementing and marketing about 2,850 apartments in 16 projects. In other words, with the addition of the new apartments that will enter the marketing phase, there are 5.5 thousand apartments.
For real estate companies of this type, the increase in the average price of apartments in the portfolio is often affected by the mix – recognition of apartments in the demand areas raises the average upwards. -13% – and in all districts in the country In the last December-January alone and compared to the period of November-December there were price increases of 2.1%.
As in the just published report, even if Damari closes deals it does not mean that she will already recognize them in subsequent reports, as this depends on the execution stage. It will be recalled, however, that at least the prices are already “locked in” according to the current mood in the market. This means that as long as the public is not impressed by the government’s plans, not even just for the rise in prices (and in the meantime does not seem to be impressed), in the coming years the company will benefit from it, even in a scenario where the market and buyers calm down in two years.
It should be noted that Damari has land reserves, projects in planning, projects in urban renewal and NAP 38 with a total volume of about 27,000 housing units, of which in the next 3 years she hopes to issue building permits for 6,700 apartments.
And back to the reported quarter, gross profitability rose to 38.7% of revenue compared to 29.5% a year earlier thanks to total activity that also includes rental income and project execution. The gross profit itself rose 7% to NIS 119 million.
In the comparison quarter in 2020, negative revaluations of Cinema City Beer Sheva and another center in Kfar Saba were recorded, at NIS 30 million. This time a positive revaluation was recorded for the same amount, thus canceling the decline. Thus, operating profit increased even more than the improvement in the gross margin, by 26%, when it amounted to NIS 115 million compared to NIS 92 million at the time. Net profit in the fourth quarter rose by a similar rate, by about 24% to about NIS 80 million, compared with about NIS 65 million in the corresponding quarter.
The company’s board of directors has updated its dividend distribution policy so that it now stands at at least 40% of annual net profit (33% previously), starting with the 2021 reports now published. Therefore, another NIS 62 million will now be distributed as a dividend.
Nurit Toito, Deputy CEO of YH Damari: The company has land reserves, projects in planning, projects in urban renewal and NAP 38 with a total volume of about 27,000 housing units – a significant volume that will support its ability to increase the volume of activity in the coming years, when during the next 3 years we intend to issue building permits. housing. We signed an agreement to purchase the balance of the minority shares in the subsidiary ‘Damari Galim’, which promotes 30 TMA 38 projects, mainly in Tel Aviv.
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