Management of Palm Hills Development (PHD) has conducted a conference call yesterday to discuss 4Q2015 results and outlook for 2016. The call was conducted by Tarek Abdel Rahman (Co-CEO), and Mamdouh Abdel-Wahab (IR & Investments Director). The following are the main highlights from the call: i) the company’s inventory of units in the North Coast will be fully sold this summer, with construction works completed in 2017-18; ii) PHD is, therefore, looking to acquire new land plots in the North Coast and is expecting to close one or two land acquisitions there, in the short term; iii) the launch of Capital Gardens in December was successful, with EGP600 million worth of reservations recorded; iv) guidance for 2016: EGP6.7-6.8 billion in reservations (EGP6.3 billion in 2015), EGP2 billion in construction cost (EGP1.9 billion in 2015); v) the company will adopt IFRS 15 in 2016, and will accordingly, start revenue recognition on percentage of completion basis; vi) rationale behind cash distribution: ongoing projects are due for completion in 2017, availability of sufficient liquidity for new projects, with the reliance on revenue-sharing agreements rather than cash transactions for land acquisitions creating excess cash; vii) PHD plans to continue to pay dividends in the future, guiding for c30% of cash flow from operations; viii) PHD plans to dispose of all or parts of its land in Saudi in 2016 (or the company that owns the land). The land was acquired at SAR180/sqm; management believes it is now worth SAR350-380/sqm. Management is yet exploring whether the newly-announced white land tax in Saudi Arabia would apply to its land bank in Saudi; ix) Management sees sales momentum continuing in 2016, with the sales budget exceeded for January. (Management 4Q2015 conference call, Mai Attia, Sara Boutros)