Talaat Moustafa Group Holding (TMG Holding) has achieved unprecedented results during the first five months of 2024, surpassing initial expectations across all activities. The Group's operational and financial performance continues to deliver on strategic objectives, supported by a resilient and low-risk business model designed for strong investor returns. To date, the Group's sales have reached an extraordinary EGP 122bn, a 2.7-fold increase from EGP 45bn in the same period last year. This includes EGP 37.1bn from sales in Saudi Arabia, representing about 2,500 units. Since our strategic overhaul in 2017, our annual sales have increased tenfold. The current backlog of sold yet undelivered units stands at EGP 239bn. TMG is poised to launch the highly anticipated SouthMead project on the North Coast, covering 23 million square meters, under a low-risk financial model. We anticipate this momentum to persist, bolstered by strong demand in Saudi Arabia. In 2024 we completed the acquisition of Legacy Hotels and Tourism Projects Company, which owns seven historic hotels. The acquisition created an unmatched platform of luxury hospitality assets with a total room base of 3,500 rooms located in top-notch properties spread across the country, in addition to some 1,500 luxury rooms under development in Madinaty, Giza, Luxor, and Marsa Alam. This strategic move to expand our hospitality operations with the acquisition resulted in unprecedented outcomes for our hotel sector, with revenues soaring to EGP 3.68bn in the first quarter of 2024, compared to EGP 799m in the same period last year, reflecting a remarkable growth rate of 360% year-over-year. The consolidation of Legacy Hotels' results contributed an additional EGP 2.76bn in revenues to our hotel sector in the quarter. Meanwhile, the Group's revenues from other recurring income and service activities saw a robust increase, amounting to approximately EGP979m in total, up from EGP770m in the same quarter of the previous year. This represents a significant growth rate of 27%, highlighting the Group's strong performance and the increasing contribution of these activities to its overall revenue streams. In addition to this figure, the Group generated some EGP660m of other income, driven primarily by sales for third-party business that constitutes a new innovative sustainable income line, a prototype that more than covers our general and administrative expenses by 1.7x. Our leasing revenues, bolstered by high-quality properties in our projects, reached EGP 193m in 1Q 2024, representing a robust year-over-year growth of 34%. These high-margin revenues, with a profit margin exceeding 80%, are poised to grow further as we bring new properties to market, reprice existing contracts, and see our share of tenant revenues increase alongside rising turnover. Meanwhile, our sporting club segment achieved impressive revenues of EGP 328m, marking a remarkable 53% year-over-year increase. Continuing on its strategy to accelerate the monetisation of investment assets and unlock their true value, the Group recently concluded a transaction worth EGP 5.3bn as part of its strategy to generate revenues from investment lands within its projects, leading to an increase in the market value estimate of the Group's land portfolio to around EGP 273bn. In addition to the estimated value of hotel assets, which amounts to EGP 99bn (equivalent to $2.1bn), and the value of other assets, this raises the market value of the Group's main assets to approximately EGP 400bn at current market prices. The most recent transaction follows several similar ones that have been secured since 2020 and which opened the door for more recurring income to be generated through the resale and management of these assets sold to institutional investors and Banks.
