“Apartment prices are expected to rise. This is already reflected in land prices” – real estate

Company

Cardan Real Estate
+ 1.91%

Base:318.9

opening:318.9

High:325

low:315.7

change:84,022

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Reports 42% growth in revenues to NIS 127 million, compared to NIS 89.3 million in the corresponding quarter in 2019. The growth in revenues was mainly due to an increase in sales of housing units sold during the fourth quarter of 2020, along with progress in project execution. Cardan is going through a great year – both in the field and in the share price. Exactly a year ago, the stock traded at a low of 123 agorot (following the corona crisis) and now it is trading at 325 agorot, which expresses a value of about NIS 580 million.

Its success is not necessarily attributed to exceptional projects or uniqueness in working methods. But simple – to surge in the housing market. People continue to buy apartments. Apartment prices are rising.

Operating profit for the quarter Increased by 72%, and amounted to NIS 22 million, compared with NIS 12.8 million in the corresponding quarter last year. Gross profit for the quarter Increased significantly to NIS 33 million, compared to NIS 15.8 million in the corresponding quarter in 2019. The increase in profits was due to the aforesaid growth in revenues from the sale of apartments, as well as a significant improvement in the profitability of the construction work sector through Al-Har.

The net profit for the fourth quarter was NIS 10.4 million, compared with a profit of NIS 6.3 million in 2019.

Al-Har improves in results
Revenue in 2020 Grew by 27% to NIS 475 million, compared to NIS 373 million in 2019. The growth in income is mainly attributed to an increase in income in the residential sector following the increase in the number of housing units sold during 2020 and the progress of projects, as well as an increase in income in construction work. Through the subsidiary Al-Har, which earned about NIS 295 million this year, and about NIS 41 million in operating profit.

Gross profit in 2020 Increased by 43% to NIS 102 million, compared to NIS 71 million in 2019. The increase in gross profit was due to the said growth in revenues, along with a significant improvement in the rate of gross profit in the construction sector and stability in the profitability of the residential sector.

“The market has matured greatly, after two or three months of internalizing the event called Corona,” says Amos Dabush, CEO of Cardan Real Estate. “People realized that not all industries in the economy were affected by Corona, and just went ahead and bought apartments, “Except for industries that were severely damaged by the corona, there is nothing to do. A significant part of the apartment buyers were not harmed, the lawyers were harmed? The appraisers were harmed? If you work for a construction company that is not harmed;

What are your forecasts for the coming year?
“In light of the repeated election campaigns and personal changes that often occur in government ministries, and the resulting policy changes, I think not much will change in the coming years, certainly in light of the large deficit created by the State of Israel. I think decision makers should think well The construction industry in the State of Israel, which is a very significant part of the economy, has horizontal implications for everything that happens in the country, and it would be good if they did it as soon as possible. ”

Apartment prices continue to rise. According to the CBS, they have risen by 4% in the past year, and according to economists’ estimates, they will continue to rise this year as well. So it is true that the managers of a real estate company have an interest in the matter, but they also have a deep and long perspective. Are apartment prices expected to rise further?
“Yes. This is reflected in the land prices that contractors win in tenders, if a contractor wins the tender at a certain price, then he can not sell the flat for less than that – it reflects what is going to happen next.”

Where will there be ups, and where will there be downs?
“The increase in apartment prices will be reflected all over the country, both in the center and in the periphery, unless they manage to flood the country with land then it probably will not happen, but I do not think we are there.”

Dabush adds: “We intend to continue to expand and develop significantly, in land acquisition and combination transactions throughout the State of Israel. We see the country as a place that is developing at a crazy pace, and we are happy to be a part of it and will continue to be a part of it.”