Duna House Group Returns to Growth Trajectory

Real estate venture Duna House Group says its crisis-resistant model has exceeded expectations by returning to its previous growth trajectory in the middle of the COVID-19 pandemic.

A report by the Group on the website of the Budapest Stock Exchange highlights that net sales revenue increased by 11%, cleaned core EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 14%, and PAT (profit after tax) more than doubled in the third quarter 2020 compared to the same period in 2019.

It adds that that all segments of the Group performed well in the third quarter 2020: real estate brokerage volumes in Poland and overall reached record highs during the quarter. Only the Hungarian own office real estate brokerage and the Polish financial product brokerage activities performed below expectations. The former due to the declining demand in downtown Budapest, the latter due to the somewhat weaker Polish housing loan
market.

• The handover and invoicing of the MyCity Residence residential real estate project, which is 50% owned by the Group, successfully began in Q3 2020. 45% of the profit from the sale of the apartments was recognized during the quarter, while the remaining profit of HUF 329 million is expected to be recognized in the following quarters.

The report also notes that the planned completion of the Forest Hill residential park, 100% owned by the Group, is postponed to April 2021 due to the intensified labor shortage caused by COVID-19, and quality improvement works on construction jobs completed by the previous general contractor.