Alargan International holds FY2016 AGM
KUWAIT: In its Annual General Meeting (AGM), shareholders of ALARGAN International Real Estate Company approved the Board of Directors’ recommendation to distribute 10% cash dividends of the share nominal value (10 fils per share). Dividends are paid to shareholders registered in the Company’s records as of the maturity date set for June 13, 2017, and paid to shareholders on June 22, 2017. Heading the AGM, Haitham Al-Khaled, Chairman of the Board of Directors of ALARGAN International Real Estate Company, said: “Through the market changes in 2016, ALARGAN continued to take prudent steps towards achieving its strategy thanks to its combined business model.
The Company advanced in the development of communities, residential projects and retail destinations that provide life-enhancing and sustainable solutions in the region, while consolidating its financial position and seeking new growth opportunities that add value to shareholders and stakeholders alike. “These advancements were strictly executed with our core business principle and motto in mind; to provide sustainability in everything we do, through our operations, investments and returns to shareholders, and to build communities that enable our stakeholders to live the life they love.”
For the financial year 2016, ALARGAN announced a net profit of KD1.8 million and earnings per share (EPS) of 7.09 fils for the year ending in December 31, 2016. Setting aside the one-time gain seen in 2015 from a divestment in the Kingdom of Saudi Arabia, ALARGAN’s operating profit increased in 2016 to KD2.95 million in comparison to a KD7.07 loss in 2015. Revenues also increased to KD26.8 million in 2016 by 37% in comparison to KD19.5 million in 2015. Expenses decreased by 14% from KD29.1 million in 2015 to KD25.1 million in 2016.
Khaled Al-Mashaan, CEO and Vice Chairman of the Board of Directors of ALARGAN International Real Estate Company, said: “As an internationally-recognized developer with a focus on developing middle-income residential housing, we have taken in our responsibilities to develop sustainable buildings that support an economically and socially viable urban environment.
Today, we are developing residential and community projects that last, in an aim that they remain an integral part of the larger urban development process and add value to their surrounding communities. We are designing communities that integrate our motto, ‘Life... As You Love It’, which extends to our sustainability values for which we have invested in green and energy efficient developments.”
Operational updates
In addition to its recurring income generating assets in Kuwait, Bahrain and Oman, ALARGAN moved forward with the development of two commercial projects, ARGAN Square in the Salmiya area, and ARGANIA in the growing retail area of Shuwaikh, as well as completed procedures to start leasing the ALARGAN Business Park located in the Free Trade Zone, an area expected to boom with businesses from local and foreign investments. In Bahrain, ALARGAN continued the leasing of its award-winning mixed-use ARGAN Village, and started sales of the Beyout ALARGAN villas. In Oman, the Company continued to add to its achievements with the delivery of residential units in the Telal Al Qurm development, and received two new recognitions awarded on behalf of Al Waha and Telal Al Qurm developments for their affordability and high-quality designs.
Outlook
Al-Mashaan said: “ALARGAN is moving forward with large projects under development, others being planned, a diversified portfolio, a recognized team, and years of experience in the region to guide us. Our region has many opportunities in the near future, specifically within the partnership projects with the public sector; local needs will be satisfied with a great product to offer. Our primary focus at ALARGAN is to add value for the benefit of our society through which we develop real estate solutions to enhance our customers’ enjoyment of life.”
Financially, ALARGAN has settled its bonds, which came to maturity in April 2017, and started consolidating its financial structure. Operationally, the Company prepares to launch its Kuwait commercial developments, and will continue to develop the Jeyoun community in Bahrain, as well as Al Waha and Telal Al Qurm in Oman. Furthermore, ALARGAN has recently signed the agreement to develop the Al Nakheel Integrated Tourism Complex with the Omani Ministry of Tourism and is taking the next steps to expand in Morocco.
Al-Khaled concluded: “We move forward with experience and a track record that sets us apart from other developers. We’ve seized on opportunities for the long-term and are now entering new markets with the aim of balancing risks for the Company over the next years. Operationally, we remain focused in the coming year on Kuwait, Bahrain and Oman, and begin our entry into Morocco. Based on the performance of our investments during challenging times, we foresee sustained yields.”