NREC reports H1 financial results
Co posts 46.05% rise in operating revenue
KUWAIT CITY, Aug 13: National Real Estate Company (NREC), a real estate developer managing over $2 billion in properties in Kuwait, UAE, Egypt and other markets in the Middle East and North Africa region, today announced total operating revenue of KD 14.02 million for the first half ending June 31, 2018, up 46.05% from the same period last year.
The Company’s EBITDA stood at KD 11.94 million, up 35.17%, while net profit was KD 6.77 million and EPS 6.57 fils in H1 2018.
NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan AlEssa, said: “Our improved operational performance was supported by income from rents of properties owned in Kuwait, Jordan and Libya where security stability has improved, in addition to continued sales of residential units in our developing mixed-use project in Egypt as well as positive earnings announced by our associates.”
“Today, NREC maintains a healthy balance between its existing incomegenerating assets and upcoming developments that will in turn generate steady revenues in the coming years.” Financial Highlights in H1 2018:
Operating revenue: KD 14.02 million, up 46.05%
EBITDA: KD 11.94 million, up 35.17%
Net Profit: KD 6.77 million, down
9%
EPS: 6.57 fils Total Assets: KD 478.51 million Shareholder’s Equity: KD 221.09 million
Sultan added: “With a positive operational performance, NREC embarked on a bullish restructure plan to enable it to reduce its debt to below KD 100 million, improve its efficiency and grab new opportunities on the long term. The company reduced debt by KD 19.36 million at half-end and is expected to further strengthen its debt position by year-end after completing the conversion of its KD 31 million convertible loan from its associate Agility Public Warehousing Company K.S.C.P. On the other hand, the adoption of IFRS standards resulted in a decrease in reported earnings.” Operations Highlights in H1 2018: Kuwait: Sale of three properties and proceeds used to reduce existing debt.
UAE: Reem Mall progresses as planned and is expected to become a leading leisure destination in Abu Dhabi once completed.
Egypt: Sale of close to 1,000 residential units in Grand Heights, and delivery of half of these by end of H1 2018.
Libya: Rents occupancy in the Palm City Residences increased from 24% by end of 2017 to 40% by June 30, 2018. The project is the residence of choice for multinational companies and government-owned agencies.
Sultan concluded: “NREC will focus in the coming period on decreasing debt, divesting some of its properties, maintaining promising assets under management and progressing as per schedule in the development of its two landmark projects, the Grand Heights in Egypt and Reem Mall in UAE.”