NREC reports KD18.42 million operating revenue for 9M in 2018

Faisal Jamil Sultan Al-Essa

KUWAIT: National Real Estate Company (NREC), which is developing properties valued at over $2 billion in the Middle East and North Africa region, today announced its financial and operational earnings for the first nine months of 2018, announcing an operating revenue of KD 18.42 million, and an EBITDA of KD 17.82 million, up 16.54 percent from the first nine months of 2017.

The Company’s net profit stood at KD 10.41 million in the nine-month period of 2018 and EPS was 9.10 fils for the same period. NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, said: “NREC has sustained its financial position supported by rental income from properties owned in Kuwait, Jordan and Libya, sale of units in the developing mixed-use project in Egypt, and positive earnings announced from our associate.”
By September 30, 2018, the Company’s total assets reached KD 482.06 million and shareholder’s equity attributable to the Parent Company stood at KD 223.21 million.

Sultan added: “The Company continues to focus on decreasing its debt below KD 100 million and has last week received shareholders’ approval to convert a KD 31 million debt into shares owned by Agility Investment Holding Limited Company in the Company’s capital, enabling it to work closely with a leading group such as Agility to support our strategy for growth. In addition to strengthening its financial position, the Company is focused on initiatives to both grow and diversify sources of operating cash flow through the development of two landmark projects in Abu Dhabi and Egypt.”

NREC launched at the beginning of 2018 its restructure plan to significantly reduce debt, improve efficiency and subsequently grab new opportunities on the long term. This is achieved by selling certain assets, improving the performance of others and developing large projects that will become new sources of revenue. These projects comprise the Reem Mall development in Abu Dhabi and the Grand Heights project in Egypt. Established in 1973 and listed on Boursa Kuwait, National Real Estate Company (NREC) is a real estate investment, development and property manager based in the Middle East and North Africa, developing assets exceeding $2 billion. The Company’s portfolio comprises a mix of retail, commercial and residential properties in the region. In addition to its core real estate business, NREC is the largest shareholder with a 22.3 percent share in Agility Public Warehousing Company K.S.C.P. which is one of the top ten logistics companies in the world.

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