ShareBy Majd Othman
KUWAIT: Vice Chairman and CEO of Arkan Al-Kuwait Real Estate Company Abdulrahman Hamad Al-Terkait announced that the company's board of directors succeeded in setting plans and strategies that contributed significantly to reach the planned goals to maintain the company's stability and maximize assets to grow annual profits for shareholders and maintain the financial stability of the company in order to achieve the best possible financial results.
Al-Terkait made the statement during the ordinary general assembly meeting of Arkan held on Tuesday, which approved the distribution of 6 percent cash dividends, equal to 6 fils per share. He said total assets grew by 67 percent compared to the previous fiscal year - from KD 89.7 million to KD 149.6 million. Total managed properties exceeded KD 570 million in various sectors, while operating revenues amounted to KD 7.7 million, an increase of 57 percent compared to the previous fiscal year.
Al-Terkait mentioned rental revenues amounted to KD 6.3 million, a 23 percent increase compared to the previous fiscal year, which led the company to achieve a net profit of KD 2,216,998, with a profit of 8.83 fils per share. He added the company in 2022 continued to achieve positive results supported by a steady and strong performance, which in turn led to achieving the desired profits and implementing the expansion strategy.
"It consolidated our vision that Arkan Al-Kuwait Real Estate be among the largest leading companies in the real estate sector in the local market, stressing that it is keen on establishing solid bases that are compatible with its future aspirations through its strategy to enhance and diversify its investments in new markets, as well as its keenness to reduce its presence in real estate markets affected by the current economic difficulties and fluctuations," Al-Terkait said.
Al-Terkait explained that the company seeks during the coming period to increase its market share in the real estate sector by investing in attractive markets to obtain high returns in various real estate sectors as well as development and operation projects. He added that the company also officially announced its acquisition of a controlling stake in First Investment Company (FIC) with a financial value of about KD 7.3 million, which is considered one of the most important current deals in the local real estate sector. The project of the SVN health club has been completed, which is a quantum leap in the field of entertainment and sports.
Al-Terkait said Arkan's successes are represented in enhancing operating revenues by raising occupancy rates in various real estate sectors, the first of which is the medical sector, as Arkan Clinic offers a privileged location and a rental area of up to 5,000 square meters with an occupancy rate of 100 percent, and the commercial sector, the most prominent of which is Wafi Complex in Khaitan with an occupancy rate of 98 percent, the vital industrial sectors on Al-Zina Street and service sectors on King Fahd Highway with an occupancy rate of 100 percent, as well as real estate management services on top of the distinguished services provided by the company, as its long-standing experience in this field contributed to obtaining the trust of the General Secretariat of Awqaf to entrust it with a real estate management contract with a total value of KD 425 million, which contributed to raising the total real estate managed by the company with various clients to more than KD 570 million. Meanwhile, the company also held an extraordinary general assembly meeting, where it agreed to add an activity to the company's purposes - the "real estate appraisal" activity.
