publish time

18/03/2024

author name Arab Times

publish time

18/03/2024

Kuwait City, Mar 18: The ordinary and extraordinary general assembly meeting of Salhia Real Estate Company was held on Monday, March 18, 2024, where it approved the recommendations of the Board of Directors to distribute cash dividends of 15% (15 Fils per share) and distribute free bonus stock dividends of 5%.

Mr. Ghazi Fahad Alnafisi, Chairman of the Board of Directors of Salhia Real Estate Company, said in his speech to the Company’s shareholders during the meeting, that Salhia Real Estate Company has achieved development in the extent of its operational performance and succeeded in increasing its total revenues, especially those resulting from its main activities in real estate investment.

He added, “Our view is positive for the next stage, and we seek to enhance the Company’s investments locally, in light of the country’s entry into a greater path of economic development, and the increasing recovery in the state’s general budget, which enhances spending opportunities and stimulates investment.”

Assima Project

Regarding the Assima Project, Ghazi Alnafisi said that the project has completed last November its second year since its opening, and the Assima Mall continues to offer a lot of new things to its visitors, whose interests in shopping have diversified, and their desires to obtain distinct activities and experience different services have increased. The mall has also succeeded in attracting new categories of visitors, including youth, families, and children, through its distinguished mix of tenants from the finest and best international and local brands in all fields, including restaurants, entertainment, cinema, and retail stores for clothing, accessories, electronics, food, and other activities that occupy the Assima Mall. It is characterized by renewal and development to keep pace with the increasing number of visitors of the mall and their needs.

Alnafisi explained that the early marketing plan for the project had a positive impact on drawing the project’s map and directions on the rental space, which is estimated at 71,500 square meters, as the rental rate in the mall reached approximately 99% of the total available units.

Alnafisi also said that the Marriott Hotel Apartments, which occupy eleven floors in the Assima project, were launched, and the hotel provides distinguished and unique accommodation for guests during vacation periods through luxurious units that include the latest equipment and means of comfort and relaxation.

The Assima office tower, which consists of 54 floors, has also begun leasing with a rental area estimated at 59,700 square meters allocated for commercial offices. Thus, all components of the Assima project have entered into actual operation so that the company begins to reap the fruits of years of building and construction.

Anwar Al-Sabah Complex

Regarding the Anwar Al-Sabah towers property land deal, Alnafisi stated that Salhia Real Estate Company had completed the deal, as a “lease purchase agreement” was signed with a local Islamic bank for an amount of KD 70 million, for the purpose of financing a lease purchase agreement for the aforementioned lands.

Anwar Al-Sabah towers are located in Qibla area - Kuwait City, on a total area of 9,284 square meters. The Company is currently studying the best proposed development plans to achieve the maximum benefit from the lands of Anwar Al-Sabah towers, whether through direct exploitation by the company or through building strategic partnerships or cooperation with related parties. Alnafisi added that this deal will increase the Company’s total investment properties in exchange for an increase in financial obligations. The value of Anwar Al-Sabah’s real estate lands will also be included in the Company’s financial statements in the first quarter of 2024.

Developing Salhia Complex and JW Marriott Hotel

During the year 2023, development work started on the ground floor of the Salhia Commercial Complex, extending from the Complex to the new main entrance from the side of Abdulaziz Al-Saqer Street. The installation of the new facades of the Complex was completed, and work is still underway to develop the JW Marriott Hotel adjacent to the Complex.

The work is carried out according to a framework agreement to ensure implementation with high professionalism and in a logical manner that ensures completion on time. The development is carried out in cooperation with the best local and international engineering consulting houses to achieve a development that befits the name of Salhia and reflects the luxury and sophistication enjoyed by the Company’s facilities.

Salhia Company shares were upgraded to the Premier market on the Kuwait Stock Exchange - Boursa Kuwait

The shares of Salhia Real Estate Company Public on the Kuwait Stock Exchange at the end of the year with good levels of trading and liquidity, and succeeded in joining the list of Premier market companies on the Kuwait Stock Exchange after applying all the required standards, according to the stock exchange’s disclosure regarding the summary of results of the annual review of listed companies for the year 2024, and the Premier market is the elite market of listed companies.

Summary of financial performance

Regarding a summary of the financial performance for the year 2023, the Company achieved a profit of KD 16 million, with earnings of 29.3 Fils per share, compared to the previous year, where profitability amounted to KD 14.6 million, with earnings of 26.8 Fils per share.

The Company's total assets increased by 9% to KD 458 million for the year 2023, compared to KD 419 million, and property rights amounted to KD 179.7 million, compared to KD 168 million, with a growth rate of 7% over the previous year. On the other hand, total liabilities increased to KD 278 million in the year 2023, compared to KD 250 million for the previous year, to cover the costs of financing the Assima project.

The Company's operating revenues during the year 2023 witnessed remarkable growth of 13% to the amount of KD 41 million compared to KD 36 million, and the net operating profit increased by 15% to the amount of KD 31 million compared to KD 27 million for the previous year.

Taking into account that all previous financial statements were recorded at historical cost and based on the financial statements for the year 2023.

With regard to the market value of total assets, which includes assets that were evaluated by neutral professional evaluators at the end of the year 2023, it amounted to KD 730 million, and thus the property rights, plus the asset revaluation surplus, became approximately KD 452 million, thus increasing the book value according to the fair value to 827 Fils per share.

Ordinary and extraordinary general assembly

The 52nd ordinary general assembly of Salhia Real Estate Company and the 26th extraordinary general assembly concluded by approving all the items contained in the two agendas, including the Board of Directors’ report, the governance report, and the financial statements for the fiscal year ending on December 31, 2023. The Board of Directors’ recommendation to distribute cash dividends of 15% (15 Fils per share) and free bonus shares of 5% of the issued and paid-up capital was approved to the Company’s shareholders registered in the Company’s records at the end of the entitlement day.