NREC reports net profit of KD11.1 million in Q3

Operating revenue reaches KD20.5 million

NREC CEO Samuel Sidiqi
NREC CEO Samuel Sidiqi

KUWAIT: National Real Estate Company (NREC), a leading regional asset manager and developer with $2 billion in projects under development in the UAE, Egypt, and other markets, today released its financial results for the third quarter of 2016.
The company recorded a growth of 11.1 percent in its top-line earnings for the quarter, bringing its year-to-date revenue to KD20.5 million, a growth of 38.4 percent from the same period last year. The company’s net profit was KD3.5 million for the quarter, bringing its year-to-date net profit to KD11.1 million, a 4.7 percent decrease from the same period last year.

Revenue growth was driven by income generating assets in Kuwait, Jordan and Egypt, where NREC is developing a 3.8 million square meter residential community. The company is also developing Reem Mall, a two million square foot major shopping destination in Abu Dhabi. 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.

9 Months (YTD) 2016 financial highlights
Operating Revenue: KD20.5 million, up 38.4 percent

EBITDA: KD13.6 million, down 7.5 percent
Net Profit to shareholders: KD11.1 million, down 4.7 percent

Earnings Per Share (EPS) of 11.8 fils
Q3 2016 financial highlights

Operating revenue: KD5.6 million, up 11.1 percent
EBITDA: KD4.1 million, down 15.1 percent

Net Profit to shareholders: KD3.5 million, down 11 percent
Earnings Per Share (EPS) of 3.73 fils

NREC CEO Samuel Sidiqi said, “We are pleased with our growth in operating revenues and continued profitability quarter to quarter and year to year. Though there are several external macroeconomic factors impacting our drop in profitability for the quarter, such as the currency issues in Egypt, both our project development business and our asset management business are healthy and standing on solid fundamentals.

Our income generating properties in Kuwait, Jordan and Egypt are performing well. In Kuwait, YTD rental revenue reached KD8 million, up 3.1 percent for the year. NREC Misr continues to perform well, we sold 805 residential units since the inception of our main residential development in the country, representing a cumulative sales value of EGP2.61 billion.
In Abu Dhabi, Reem Mall has acquired all necessary government approvals and is in the process of tendering the remaining works. Our leasing program is on track and continues to exceed expectations.”

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