NREC posts KD 7.5m net profit in first half – Company earns KD 3.7 million in second quarter

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KUWAIT CITY, Aug 14: National Real Estate Company (NREC), a leading regional developer with USD2 billion in projects under development in the UAE, Egypt and other markets, today released its financial results for the first half of 2017.

H1 2017 Financial Highlights (YoY)

* Operating Revenue: KD9.6 million, down 35.7%

* EBITDA: KD8.7 million, down 9.5%

* Net Profit to shareholders: KD7.5 million, down 1.6%

* Earnings Per Share (EPS) of 7.96 fils

Q2 2017 Financial Highlights (YoY)

* Operating Revenue: KD5.4 million, down 29.1%

* EBITDA: KD4.2 million, down 17.2%

* Net Profit to shareholders: KD3.7 million, down 7.4%

* Earnings Per Share (EPS) of 3.92 fils

Commenting on the results and outlook, Samuel Sidiqi, CEO of NREC said: “We are pleased to report that for the first half of the year, our results have met management expectations and are in line with our business plan. Both our asset management and development businesses across the region are healthy and exhibit strong growth prospects.

“In Egypt, the economy continues to improve which has positively impacted our local operations.  At Grand Heights, our 3.8 million square meter residential community, we have sold 961 residential units since inception representing a cumulative sales value of EGP3.2 billion and 146 units have been delivered as of June 30, 2017.

“Our income generating businesses in Kuwait and Jordan continue to perform well. In Kuwait, we generated revenues of KD5.4 million in H1 2017 and have secured several key tenant renewals. Additionally in Lebanon, our revenues of KD1.6 million in H1 2017 were up sharply due to strong sales at our developments.

“In Abu Dhabi, the development of the two million square foot Reem Mall is moving ahead steadily having secured leasing agreements with top retail groups in the region such as Landmark, Dubai Holdings, Majid Al Futtaim and many others. Reem Mall will house more than 450 stores including 85 restaurants, a large hypermarket, and family entertainment zones that include the world’s largest indoor snow-play park.

“Looking ahead, we maintain our favorable outlook across our core markets this year.”

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