Mubasher: National Real Estate Company (NREC) on Monday reported drops in profits for both the second quarter of 2017 and the first six months of the year.
NREC logged KWD 3.7 million ($12.3 million) in net profits attributable to shareholders in Q2-17, down 7.4% year-on-year, according to a statement.
Operating revenues fell 29.1% year-on-year to KWD 5.4 million, while EBITDA was down 17.2% to KWD 4.2 million. Earnings per share (EPS) amounted to 3.92 fils in Q2-17.
The Kuwaiti company, with $2 billion in projects under development across the UAE, Egypt, and other markets, achieved KWD 7.5 million in net profits attributable to shareholders in the period between January and June 2017, registering a year-on-year decline of 1.6%.
Its operating revenue dropped 35.7% to KWD 9.6 million in H1-17 compared to figures from the year-ago period, while EBITDA declined 9.5% to KWD 8.7 million. EPS amounted to 7.96 fils in H1-17.
Commenting on the results and outlook, NREC CEO Samuel Sidiqi stated that his company’s results met management’s expectations and were in line with the company’s business plan.
“Both our asset management and development businesses across the region are healthy and exhibit strong growth prospects,” he said.
The recent improvements in the Egyptian economy have positively affected NREC’s operations there, Sidiqi said, noting that the company’s 3.8 million-square metre residential community at Grand Heights has seen 961 sales of residential units, bringing cumulative sales to EGP 3.2 billion. So far, 146 units have been delivered as at 30 June 2017, the CEO added.
“Our income generating businesses in Kuwait and Jordan continue to perform well. In Kuwait, we generated revenues of KWD 5.4 million in H1-17 and have secured several key tenant renewals. Additionally in Lebanon, our revenues of KWD 1.6 million in H1-17 were up sharply due to strong sales at our developments,” Sidiqi revealed.
NREC’s 2 million-square foot development Reem Mall in Abu Dhabi is moving ahead “steadily” after acquiring leasing agreements with top retail companies. The mall is set to include over 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 favourable outlook across our core markets this year,” NREC’s CEO concluded.
