KUWAIT: National Real Estate Company (NREC), a leading regional asset manager and developer headquartered in Kuwait with $2 billion in projects under development in the UAE, Egypt and other markets, today announced its financial results for the first quarter of 2018.
The Company recorded an operating revenue of KD 5.9 million, an EBITDA of KD 5.5 million and a net profit of KD4 million, up 6.7 percent from Q1 2017.
Q1 2018 Financial Highlights
Operating Revenue: KD5.9 million, +15.2 percent from Q1 2017
Gross Profit: KD2.7 million, -2.5 percent from Q1 2017
EBITDA: KD5.5 million, +26.3 percent from Q1 2017
Net Profit: KD4.0 million, +6.7 percent from Q1 2017
Basic EPS (fils): 4.31 fils
(Figures above have been rounded)
NREC Vice Chairman & CEO, Faisal Jamil Sultan Al-Essa said, “We continue to report healthy results from our core operations mainly from our rental business in Kuwait and Jordan, along with solid sales in Egypt which contributed to the favorable performance to date. In Libya we are seeing occupancy rates increase month on month mainly due to the improved security conditions. We have continued to achieve major milestones in our two largest projects, Grand Heights in Egypt and Reem Mall in UAE. Both projects are progressing well and in line with expectations. In the first period of 2018 we have executed the first part of our strategy by reducing debt from KD 149.5 million to KD 131.3 million which will be reflected during the next period. Looking forward for the remaining period of 2018, NREC will continue to focus on asset repositioning and debt reduction aiming towards our stated objective of reducing leverage to below KD 100 million.
Q1 2018 Business Highlights
The development of Reem Mall in UAE is progressing well and in line with management expectations.
At the Grand Heights residential community in Egypt, NREC has sold 1,011 units and plots, of which 502 were delivered as of March 31 2018, with a total cumulative sales value (delivered and to be delivered) of EGP 3.49 billion.
NREC’s JV in Libya, Palm City Residences closed another positive quarter, reporting operating profits of 1.9 million Euro and Net Profit of 1.5 million Euro, with occupancy rate rising from 24 percent to 30 percent during the quarter. The project continues to be the best choice for multinational companies and government agencies participating in the recovery of Libya.
Q1 2018 balance-sheet highlights
As of March 31, 2018, total assets stood at KD 501.6 million, and shareholder’s equity at KD 218.7 million. NREC’s capital and shareholder base is expected to further strengthen during the year upon conversion of KD 31 million Convertible Loan from Agility Logistics Company. The conversion process is currently in progress.
Bank dues as of March 31, 2018 stood at KD 149.5 million.