NREC posts KD 17.9mn net profit in 2022

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KUWAIT CITY, April 1: National Real Estate Company (NREC), currently developing various mega projects in the Middle East and North Africa region, reported its financial and operational results for the year ending December 31, 2022. The Company announced a net profit attributable to the owners of the Parent Company of KD 17.9 million and an EPS of 10.1 fils in 2022, compared to a net profit of KD 199.6 million and an EPS of 112.2 fils in 2021. The Company’s operating revenue came in at KD 26 million for the year ending December 31, 2022, as compared to KD 32.5 million in 2021. Total assets were KD 539 million by December 31, 2022, as compared to KD 654 million in 2021. For Q4 2022, the Company reported a net profit of KD 6.3 million, or a profit per share of 3.6 fils, and an operating revenue of KD 7.3 million.

Commenting on the Company’s results, NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, said: “The continuous progress in the delivery of units in the Company’s project Grand Heights in Egypt supported the Company’s operating revenues for the year 2022.” Sultan added: “The reason for the decline in profits in 2022 as compared to 2021 is the impact of an exceptional gain that arose from our associate company Agility’s sale of the Global Integrated Logistics unit to DSV, in exchange for shares in DSV, during FY 2021.” “We would like to take the opportunity to express our gratitude to our valued shareholders and stakeholders for their continued trust in our management team.”

NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa

Recommendation The Company’s Board of Directors has recommended not to distribute any dividends for the year 2022, due to the uncertainty and inconsistency associated with public sector policies concerning land use and the role of the private sector in the economy. This recommendation is subject to the approval of the General Assembly of Shareholders.

Landmark Projects
“Our focus continues to be centered on improving the performance of our operational properties, as well as advancing the development of our two key projects, Reem Mall in Abu Dhabi and Grand Heights in Egypt”, said Sultan. Reem Mall – Stores and restaurants have already started opening their doors to Abu Dhabi customers (bold) A $1.3 billion state-of-the-art project, situated on Reem Island, right in the heart of new Abu Dhabi, Reem Mall covers nearly 2.8 million square feet of useable area and is destined to house around 450 of the finest international and local brands, as well as featuring around 85 restaurants and cafes and a range of family-focused entertainment offerings including Vox Cinemas, Carrefour Hypermarket, and the iconic Snow Abu Dhabi.

“Many stores and restaurants have already opened their doors to customers in Abu Dhabi, and we maintain a positive outlook on the transition of Reem Mall from a construction project to an operating asset, which will boost the Company’s revenue growth in the upcoming years” said Sultan. Grand Heights – The development and delivery of residential units continues to progress (bold) The Company’s residential project in Egypt, Grand Heights, has made significant progress in developing and delivering residential units. Grand Heights forms part of a more extensive parcel of land owned by NREC’s subsidiary KUWADICO, and is presently being developed in different sections by three sub-developers

. Covering an area of 3.8 million square meters, the project addresses the surging housing needs of the growing population in Cairo and its suburbs. Sultan said: “The percentage of units sold across the whole project as of the end of 2022 was 74%.” “Total sold units across the entire project in Egypt stood at 6,607 and the remaining unsold units stood at 2,291 by year-end”, added Sultan. Established in 1973 and listed in Boursa Kuwait, National Real Estate Company (NREC) is a real estate investment, development and property manager based in the Middle East and North Africa. The Company’s portfolio comprises a mix of retail, commercial and residential properties in the region

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