First Dubai re­ports net profits of KD 2.10 mil­lion in 9 months

Earn­ings per share of 2.10 fils logged in past nine months

Kuwait Times - - BUSINESS -

First Dubai Real Es­tate Com­pany has an­nounced net profits of KD 2.10 mil­lion dur­ing the first three-quar­ters months of the year 2016 from KD 1.20 mil­lion last year, a rise of 74.54 per­cent. An­nounc­ing the fi­nan­cial re­sults for the year, the Kuwaiti share­hold­ing com­pany said earn­ings per share of 2.10 fils were logged dur­ing the past nine months against 1.20 fils dur­ing the same pe­riod in 2015.

Fol­low­ing the com­pany’s board meet­ing on Sun­day, Oc­to­ber 30th, Sh­lash Al-Ha­jraf, Board Chair­man and Man­ag­ing Di­rec­tor of Cap­i­tal Mar­kets Author­ity in Kuwait, said, “Dur­ing the first nine months of the year, First Dubai achieved in­cred­i­bly pos­i­tive fi­nan­cial re­sults by virtue of its fo­cus on sell­ing hous­ing units that are still un­der con­struc­tion to in­vestors and si­mul­ta­ne­ously rent­ing the pro­jects that have al­ready been com­pleted.”

Com­ment­ing on the com­pany’s op­er­at­ing ac­tiv­i­ties, Al-Ha­jraf said, “First Dubai has con­tin­ued to post high-oc­cu­pancy rates in its in­come-gen­er­at­ing pro­jects, in­clud­ing Sky Gar­dens at Dubai In­ter­na­tional Fi­nan­cial Cen­tre where oc­cu­pancy rate reached 96 per­cent. In ad­di­tion, pro­jects in Saudi Ara­bia have nearly reached full ca­pac­ity. While Al-Maathar Tow­ers’ oc­cu­pancy rate has reached 85 per­cent and Al OlayaTower’s achieved 70 per­cent oc­cu­pancy. Pro­jects like Queue Point in Dubai Land also recorded ef­fec­tive sales.”

Al-Ha­jraf de­clared that dur­ing the first three­quar­ters of the year, the com­pany showed progress in terms of op­er­at­ing per­for­mance and net profits as part of its long-term strat­egy, which aimed at gar­ner­ing high re­turns with the low­est risk pos­si­ble. He added that the com­pany’s op­er­at­ing rev­enues jumped to KD 9.20 mil­lion, a 54.9 per­cent rise when com­pared with 2015’s KD 5.94 mil­lion. Elab­o­rat­ing on the details of the op­er­at­ing rev­enues, the board chair­man added, “Sales rev­enues rose from KD 4.22 mil­lion by the end of the 3rd quar­ter of last year to KD 6.87 mil­lion by the end of the 3rd quar­ter of 2016 achiev­ing an in­crease of 62.88 per­cent. Dur­ing the same pe­riod, the net profit for rental rev­enues was KD 2.29 mil­lion, a 32.64 per­cent in­crease over KD 1.72 mil­lion dur­ing the same pe­riod in 2015.

By the end of the third quar­ter 2016, the com­pany’s to­tal as­set in­creased by 60.9 per­cent with to­tal value of KD 95.26 mil­lion. This has been achieved partly as a re­sult of a fi­nan­cial set­tle­ment struck with Al-Mazaya Hold­ing, the par­ent com­pany. Fol­low­ing this set­tle­ment, the com­pany’s long-term as­sets in­creased to KD 76.81 mil­lion, so­lid­i­fy­ing the qual­ity of its real es­tate as­sets. Fur­ther in­dica­tive of re­cent growth, the own­ers’ eq­uity grew steadily to reach KD 70.24 mil­lion by the end of the 3rd quar­ter this year against KD 67.45 mil­lion dur­ing the same pe­riod in 2015.

The com­pany man­aged to re­duce its short and long-term fi­nan­cial com­mit­ments, low­er­ing costs from KD 32.17 mil­lion by the end of the third quar­ter 2015 to KWD 25.02 mil­lion dur­ing the same pe­riod in 2016. Due to the con­tin­ues de­liv­ery of all of its hous­ing units and re­ceiv­ing the clients’ pay­ments, the com­pany re­duced its short-term com­mit­ments from KD 11.24 mil­lion by the end of the third quar­ter 2015 to KD 6.40 mil­lion dur­ing the same pe­riod in 2016.

First nine-month achieve­ments

Al-Ha­jraf high­lighted the achieve­ments of the first nine months of the cur­rent year as fol­lows:

* Set­tle­ment with the par­ent com­pany re­sult­ing in an in­crease in the com­pany’s real es­tate in­vest­ments and as­sets and growth of its ge­o­graphic share. Thus, re­duc­ing risk fac­tors and ex­pand­ing the ge­o­graph­i­cal dis­tri­bu­tion of the com­pany’s pro­jects.

* Strength­en­ing the rental rev­enues of its cur­rent pro­jects by re­new­ing rentals at a higher lease rate pro­por­tion­ate to cur­rent mar­ket prices and cor­re­spond­ing with the real es­tate ser­vices of­fered by the com­pany. This re­flected pos­i­tively on the com­pany’s op­er­at­ing rev­enues gen­er­ated from its prop­erty leases.

Ha­jraf con­cluded, “First Dubai is now con­duct­ing a new ac­tion plan for the com­ing five years aimed at en­sur­ing more ex­pan­sion and suc­cesses in the best in­ter­est of the com­pany and its share­hold­ers.” Based on the cur­rent trends of the com­pany, these new ac­tion plans are likely to come to fruition.

Sh­lash Al-Ha­jraf

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