Kuwait’s National Real Estate Company reports net profit of $22mn in H1 2019
According to the National Real Estate Company (NREC), which is presently developing properties valued at over USD 2 billion in the Middle East and North Africa region, today reported its financial and operational earnings for the first half of 2019, announcing a net profit of KD 6.6 million ($22mn), and an EPS of 4.9 fils.
The Company’s operating revenue stood at KD 8.5 million ($28mn) in H1 2019 and its EBITDA at KD 11.8 million (39mn). Total assets reached KD 465.9 million by June 30, 2019.
Total liabilities decreased by 16.2% to KD 194.9 million from Q2 2018, while loans and borrowings decreased by 18.5%.
NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, said: “NREC is delivering on its strategy to strengthen its cash position by reducing debt and enhancing the performance of its operating properties and developing landmark projects. In a year, the Company’s debt was reduced palpably while operations performed better from our existing income-generating portfolio in Kuwait, Jordan, Libya and Iraq, translating into our bottom line.”
NREC has also progressed in the development and leasing of the landmark project, Reem Mall, in Abu Dhabi. The project has a confirmed tenant-mix of leading retailers in the region and world.
In Egypt, the Company’s mega-residential project, Grand Heights, reached advanced phased of development and delivery of residential units. The project covers a total of four million square meters and caters to the housing needs of a growing population in Cairo and its suburban areas.
Sultan said: “Reem Mall and Grand Heights are significant investments that will support NREC in growing and diversifying its sources of operating cash flow in the coming years.”
In Kuwait, NREC manages the waterfront destination, Souq Sharq, and the El Joan resort. In Jordan, the Company owns and operates the South Aqaba Investment Park, a 1.5 million square meters property dedicated for warehousing, factories, companies and logistics in an attractive investment climate the provides access to major international markets and Free Trade Agreements. In Libya, NREC’s Palm Residences is a residential project offering high-end facilities and security on the Mediterranean coastline in Janzour, a suburb of Tripoli. In Iraq, the Company operates an existing property and is seeking new investment opportunities in close to largest and busiest ring road in Erbil.
Established in 1973 and listed on Boursa Kuwait, National Real Estate Company (NREC) is a real estate investment, development and property manager based in the Middle East and North Africa, presently developing assets exceeding USD 2 billion. The Company’s portfolio comprises a mix of retail, commercial and residential properties in the region. In addition to its core real estate business, NREC is the largest shareholder with a 22.3% share in Agility Public Warehousing Company K.S.C.P. which is one of the top ten logistics companies in the world.