NREC reports net profit of KD11.1 mil­lion in Q3 Op­er­at­ing rev­enue reaches KD20.5 mil­lion

Kuwait Times - - BUSINESS -

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, yes­ter­day 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:

per­cent

EBITDA: Net Profit to share­hold­ers:

down 4.7 per­cent Earn­ings Per Share (EPS) of 11.8 fils

Q3 2016 fi­nan­cial high­lights: Op­er­at­ing rev­enue:

KD20.5 mil­lion, up 38.4 KD13.6 mil­lion, down 7.5 per­cent KD11.1 mil­lion,

KD5.6 mil­lion, up 11.1 per­cent

EBITDA: Net Profit to share­hold­ers:

KD4.1 mil­lion, down 15.1 per­cent 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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