Binghatti Holding Limited: Repayment of 27s looking increasingly challenged: Downgrade 27s to UW

Research evidence excerpt

Binghatti Holding Limited: Repayment of 27s looking increasingly challenged: Downgrade 27s to UW

Zafar Nazim, CFA AC CEEMEA Credit Research

(44-20) 7134-7551 30 July 2026 J P M O R G A N

zafar.nazim@jpmorgan.com

Figure 2: Binghatti 2H26 cash flow forecast

AED mn

Binghatti 2H26 cash flow forecast

Unrestricted cash 2Q26 393

Inflows

Handovers 3Q26 2,054

Handovers 4Q26 799

Interest received 50

Other income 25

Sub-total: Inflows 2,928

Outflows

Repayment of debt -109

Repayment of lease liab -56

Repayment to investors -50

Purchase of PPE -100

Land payment -1,200

Interest expense -450

SG&A -1,147

Tax on 2025 profit -271

Sub-total: Outflows -3,382

Change in unrestricted cash -454

Unrestricted cash FY26 -61

Drawing on available lines 1,336

Unrestricted cash FY26 - final 1,275

Source: Company reports and JP Morgan estimates

Project completions appear to have been delayed, adversely

impacting cash flow

During their post-war webinar at the end of 1Q, Binghatti’s management expected

completion of 16 projects during 2Q-4Q26 (2Q: 5, 3Q: 4; 4Q: 7). The company now appears

to be experiencing delays and expects only 13 projects to be completed this year (2Q: 3, 3Q:

6; 4Q: 4). Project handovers are typically associated with 30%+ (of project value) payment

inflows and such delays exacerbate the company’s liquidity shortfall.

In the table below, we have estimated inflows into unrestricted cash from project handovers.

The company’s payment plan calls for a 30% final payment from customers at handover. We

add an additional 20% (of the sale value) cash release from escrow (for a total of 50%) under

the assumption of 50% gross margin. We are, of course, approximating numbers here given

the lack of granular data from the company. We note that the AED 767mn inflow we have