NREC reports a net profit of KD 10.8m for 2018

Faisal Jamil Sultan Al-Essa

KUWAIT: National Real Estate Company (NREC), which is presently developing properties valued at over USD 2 billion in the Middle East and North Africa region, today announced its financial and operational earnings for the year ending December 31, 2018, recording an operating revenue of KD 21.6 million, and an EBITDA of KD 25 million, up 22 percent from the previous year.

The net profit stood at KD 10.8 million for the year while its EPS was 7.71 fils. The total assets reached KD 478 million by year-end and shareholder’s equity attributable to the Parent Company stood at KD 258 million.

NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, said: “NREC focused in 2018 on the development of its two landmark projects, Reem Mall in Abu Dhabi and Grand Heights in Egypt. These projects have started generating revenue from sales and confirmed lease, enabling the Company to grow and diversify sources of operating cash flow in the next years.

“Revenues were also driven from our existing assets across the region, mainly from rental income from properties owned in Kuwait, Jordan and Libya, in addition to positive earnings announced from our associate.”

Located in Reem Island in Abu Dhabi, Reem Mall is a major new retail, leisure, dining and entertainment destination that comprises 450 stores and has a confirmed tenant-mix of leading retailers in the region and world. Grand Heights in Egypt is a residential development covering 1.5 million square meters and caters to the housing needs of a growing population in Cairo and its suburban areas. Sultan added: “The Company also ended the year with a better cash position as part of its plan to decrease debt below KD 100 million. NREC completed the conversion of KD 31 million in debt into shares owned by Agility Investment Holding Limited Company in the Company’s capital, enabling us to work closely with a leading group such as Agility to support our strategy for growth. Some of the assets were also sold, enabling the Company to focus on its larger projects as they come on line. By year-end, NREC had reduced its overall debt by a total of KD 49.7 million through the sale of assets and the loan conversion to equity.”

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. Note: 2018 and 2017 earnings were subject to a restatement following the implementation of the IFRS 9 accounting standards, adjusting the 2017 net profit from KD 10.6 million to KD 11.9 million and the 2017 operating profit from KD 38.5 million to KD 40.4 million.