Kardan Real Estate Development and Development Ltd., controlled by Kardan Israel, reported this morning its financial results for 2021, which indicate a record sale of apartments, and the company continues to work to increase land reserves for residential construction in accordance with its strategic plan – during 2021 the company acquired Plots and land for the construction of projects amounting to thousands of housing units throughout the country.
Highlights of the results for 2021:
Revenues in 2021 grew by 38% to NIS 653 million, compared to NIS 475 million in 2020. The growth in revenues was mainly due to doubling revenues from the sale of apartments following the increase in the number of housing units sold and the progress of the project.
Gross profit in 2021 increased by 41% to NIS 144 million, compared with NIS 102 million in 2020. The increase in gross profit was due to the said growth in the volume of activity from the sale of apartments and the improvement in gross profit from the sale of apartments.
The company concludes 2021 with a sharp increase of about 140% in the net profit attributed to shareholders to about NIS 81.6 million, compared with a net profit of about NIS 33.9 million in 2020. The sharp increase in net profit is attributed to the said growth in activity from apartments and improved profitability from sales Dwellings, as well as, among other things, an increase in the value of investment real estate and investment real estate in the amount of NIS 13.3 million in respect of the revaluation of Beit Kardan in Tel Aviv and land revaluation in Beit Dagan, compared to 2020 in which an impairment of NIS 4.4 million was recorded. For these.
Sales:
In 2021, the company presented a jump in the number of housing units sold compared to 2020 and compared to 2019 – in 2021, the company sold 236 housing units, compared to the sale of 104 housing units in 2020 and compared to the sale of 83 housing units in 2019.
The positive trend in the rate of apartment sales continues even after the balance sheet date – from the beginning of the year until close to the date of publication of the financial statements, the company sold an additional 36 housing units.
Balance sheet for 31.12.2021 and recent developments:
The company (in the consolidated report) has a volume of cash and cash equivalents and short-term investments in the total amount of NIS 398 million. The company has a net financial debt of NIS 72 million.
The company’s shareholders’ equity amounted to NIS 605 million (NIS 602 million attributed to shareholders), and constitutes approximately 51.9% of the total balance sheet (less advances from apartment buyers and liabilities to landowners) – after a dividend was distributed to the company’s shareholders in the amount of approx. NIS 20 million.
In the residential sector, the expected gross profit from projects under construction, planning as well as from land reserves and suspended projects amounts to approximately NIS 2 billion.
In the construction work segment, the subsidiary al-Har has accumulated orders totaling NIS 1.7 billion, of which al-Har has recognized revenues totaling NIS 0.5 billion, and is expected to recognize a total additional NIS 1.2 billion.
In March 2022, the Company’s Board of Directors announced the distribution of a dividend to shareholders in the amount of NIS 34 million to be paid in April 2022.
In February 2022, the company completed a transaction to purchase shares (60%) of Holyland Park Ltd., which is an investee company (40%), in exchange for NIS 126 million, thus holding the company full share capital (100%) and the rights in the Holyland project. In Jerusalem, which has a valid master plan for the construction of 258 housing units and hotel areas.
In December 2021, the company signed an agreement to sell shares in Nofei Hashemesh, a 50% holding company, which owns land designated for the construction of 216 housing units and commercial areas in Beit Shemesh, for NIS 80 million (the company’s share in return). . The company is expected to complete the transaction in the coming weeks, and as part of this, the company is expected to post an additional profit before tax in the amount of NIS 43 million, in addition to a profit of NIS 7 million recognized in the financial statements for 2021.
Amos Dabush, CEO of Cardan Real Estate: “We conclude 2021 with an all-time record in apartment sales, with the positive trend continuing even after the balance sheet date. This year we showed a sharp increase of about 38% in revenue when record sales in 2021 The company’s financial statements for 2021 have not yet been fully reflected, given the pace of progress in the implementation of the projects in which the apartments were sold.
Looking broadly, over the past two years the company has ‘jumped a step’ in the volume of activity in the residential sector, when from the sale of about 83 housing units in 2019 we moved to the sale of 104 housing units in 2020 and about 236 housing units in 2021 – an increase supported by actions taken in the last two years. Alongside a supportive business environment with high demand for apartment purchases. In addition, during the year 2021 we purchased plots of land and land for the construction of projects amounting to thousands of additional housing units that will gradually mature for execution and yes, went on the market over the next few years. At the same time, the company has won many projects in the field of urban renewal in many cities in the country and to the extent of thousands of additional housing units. The company has an expected gross profit of about NIS 2 billion from projects under construction, planning, including land reserves and suspended projects, the construction of which will begin in the coming years, at the same time as we continue to develop and expand the company’s activities. “