Al-Mazaya Hold­ing an­nounces KD 4.17m in net profit for H1

Op­er­at­ing rev­enues surge 22% to KD31.32m, EPS at 6.70 fils

Kuwait Times - - BUSINESS -

Al-Mazaya Hold­ing has an­nounced its fi­nan­cial state­ments for H1 2017, post­ing KD 4.17 mil­lion in net prof­its, against KD 4.14 mil­lion for the same pe­riod in 2016. Earn­ings per share reached 6.70 fils in 2017 against 6.66 fils for the cor­re­spond­ing pe­riod in 2016.

Com­ment­ing on the fi­nan­cial state­ments, fol­low­ing the com­pany’s re­cent board meet­ing, Al-Mazaya Group CEO En­gi­neer Ibrahim Al-Saq’abi said that Al-Mazaya Hold­ing has con­tin­ued to boost its op­er­at­ing per­for­mance for the first half of 2017 thanks to an in­ten­sive fo­cus on a ro­bust op­er­at­ing plan based on well-in­te­grated strat­egy and a strict time frame that boosted the com­pany’s to­tal op­er­at­ing rev­enues by 22.02 per­cent to KD 31.32 mil­lion by the end of the first half of this year against KD 25.67 mil­lion for the same pe­riod last year.

Al-Saq’abi at­trib­uted the sig­nif­i­cant growth in rev­enues to well-thought-out mar­ket­ing and sales strat­egy that drove op­er­at­ing rev­enues up to KD 27.52 mil­lion this year, show­ing a growth of 25.46 per­cent from KD 21.93 mil­lion for the cor­re­spond­ing pe­riod last year, with rental rev­enues in­creas­ing 3.52 per­cent to KD 3.73 mil­lion by the end of the first six months of 2017 against KD 3.61 mil­lion for the same pe­riod in 2016. The com­pany de­clared KD 7.41 mil­lion op­er­at­ing prof­its for Jan­uary to June pe­riod, show­ing around 22 per­cent year on year growth, gen­er­ated by sales and rentals.

Elab­o­rat­ing on the fi­nan­cial rev­enues gen­er­ated by the com­pany’s op­er­a­tions, Al-Saq’abi said that the rental rev­enues were driven by in­creased rentals from Al-Olia Tower, a project lo­cated in Riyadh, Saudi Ara­bia, which the com­pany added to its in­come-gen­er­at­ing streams re­cently. In this re­gard, the group chief ex­ec­u­tive also high­lighted the com­pany’s suc­cess in se­cur­ing high oc­cu­pancy rates at its other pro­jects, in­clud­ing Sky Gar­dens in Dubai In­ter­na­tional Fi­nan­cial Cen­tre where the oc­cu­pancy ca­pac­ity hit 95 per­cent, and Al-Mazaya Tow­ers in the Kuwaiti cap­i­tal (3 tow­ers) where the oc­cu­pancy rate recorded al­most 100 per­cent along with the com­pany’s other pro­jects ex­e­cuted in a num­ber of other re­gional coun­tries, such as KSA, and Dubai where the oc­cu­pancy rate also surged to around 100 per­cent as well.

On a sim­i­lar note, Al-Saq’abi added that the com­pany se­cured other sales in ready-for-sale prop­er­ties, in­clud­ing of­fice spa­ces at Al-Mazaya Busi­ness Av­enue in ad­di­tion to sell­ing and hand­ing over a large num­ber of res­i­den­tial units at its “Q-Point” and “Q-Line” de­vel­op­ments and at Ritim Is­tan­bul Devel­op­ment in Turkey.

Al-Saq’abi in­formed that the com­pany has main­tained pro­gres­sive growth in its op­er­at­ing per­for­mance and sig­nif­i­cant net prof­its thanks to a well-cal­cu­lated strat­egy based on smart ob­jec­tives. The com­pany’s to­tal as­sets reached KD242.13 mil­lion by the end of H1 against KD233.95 mil­lion for the same pe­riod last year, show­ing a growth of 3.50 per­cent. Stock­hold­ers’ rights amounted to KD 116.60 mil­lion by the end of H1 2017 from KD114.29 mil­lion over the same pe­riod in 2016, record­ing a growth of 2.02 per­cent.

Mile­stones in H1

Com­plet­ing up to 25 per­cent of the con­struc­tion work at Al-Mazaya Res­i­dence project which is due for han­dover in 2018 in the Al-Seeb Prov­ince in the heart of the Omani cap­i­tal. Con­struc­tion work on the project’s foun­da­tion and base­ment, which is spread over 6,614 square me­tres, has been com­pleted. It will help to start the main up­per con­struc­tion work and ex­ter­nal struc­ture. A large-scale mar­ket­ing cam­paign has been im­ple­mented by the com­pany for the project and re­sulted in sell­ing 30 per­cent of its units.

Al-Mazaya has com­pleted the devel­op­ment of a world-class med­i­cal build­ing to serve as an in­di­vid­ual health clinic in Sabah Al-Salem. The project has to­tally been rented out to lead­ing doc­tors in Kuwait and its rental rev­enues are pro­jected to be listed by the end of the 4th quar­ter of the cur­rent year.

Al-Mazaya Hold­ing has been named among the top 50 com­pa­nies listed on the Kuwaiti Stock Ex­change by “Forbes Mid­dle East”, a lead­ing source for re­li­able busi­ness news and fi­nan­cial in­for­ma­tion. The an­nounce­ment was made at the annual cer­e­mony or­ga­nized by the mag­a­zine un­der the pa­tron­age of Sheikh Mo­ham­mad Ab­dul­lah AlMubarak Al-Sabah, Min­is­ter of State for Cab­i­net Af­fairs, who pre­sented the award in the pres­ence of Dr Nasser Bin Aqeel Al-Tay­yar, Pres­i­dent and Pub­lisher of Arab Pub­lisher House, and Pub­lisher of Forbes Mid­dle East. Al-Mazaya Hold­ing Group CEO Eng. Ibrahim Al-Saq’abi re­ceived the pres­ti­gious award in the pres­ence of a galaxy of key CEOs of lead­ing pub­lic and pri­vate sec­tor com­pa­nies and di­plo­mats in Kuwait as well as Arab re­gion.

Al-Mazaya Lo­gis­tics project in Bahrain In­vest­ment Wharf has been to­tally rented out at a 100 per­cent oc­cu­pancy rate. Al-Mazaya Lo­gis­tics rep­re­sents an au­da­cious busi­ness plat­form for lo­gis­tics in­vest­ments. Its rev­enues have al­ready been in­cluded in this year’s H1 bud­get.

An agree­ment with In­jaz-Kuwait to train 1,000 high­school and col­lege stu­dents by com­pany’s pro­fes­sion­als dur­ing 2017 as part of its Cor­po­rate So­cial Re­spon­si­bil­ity obli­ga­tions to­wards the coun­try’s youth.

Com­ple­tion of the ini­tial con­cept de­sign stage at its new project in Al Sharq area in Kuwait (Mazaya Down­town) through Gensler, an in­te­grated ar­chi­tec­ture, de­sign, plan­ning and con­sult­ing firm. The fi­nal de­sign and ar­chi­tec­tural li­cens­ing have been en­trusted to a lead­ing lo­cal com­pany in Kuwait to get the con­struc­tion li­cense from state depart­ments con­cerned.

Con­tin­u­ing to ex­e­cute its new pro­jects in Dubai, in­clud­ing com­ple­tion of Phase II con­struc­tion con­crete and ce­ment works of the Q-Line project, which con­sists of two res­i­den­tial build­ings with 253 apart­ments. In ad­di­tion, the com­pany has com­pleted de­sign and li­cens­ing of Q-Zone Devel­op­ment which con­sists of 500 flats.

Com­plet­ing sales and de­liv­ery of Phase I units at the 121-flat Q-Line project in a record time of 17 months. The project, whose prof­its have been in­cluded in the Q1 bud­get, is lo­cated in Dubai­land and ad­dresses mid­dle-in­come seg­ments.

Com­pleted the ex­e­cu­tion of Ritim Is­tan­bul Devel­op­ment, which con­sists of 6 res­i­den­tial tow­ers and a mall. Up to 80 per cent of the res­i­den­tial units have been sold, with the mall’s oc­cu­pancy reach­ing 50 per cent so far. Work is un­der way to hand over sold units to its new own­ers and in­crease the mall’s oc­cu­pancy rate.

Com­plet­ing build­ing work at the Q-Point fi­nal phase. The project, lo­cated in Dubai­land, ad­dresses mid­dlein­come seg­ment, with work un­der way to de­liver res­i­den­tial units to their new own­ers and in­clude the project’s prof­its within the 2017 prof­its. The project’s mar­ket­ing cam­paign is go­ing on in full swing to ac­cel­er­ate sales.

Al-Mazaya Hold­ing con­tin­ued its rental op­er­a­tions at its com­mer­cial tower in Al-Olia area, Riyadh, through one of its sub­or­di­nates. The project achieved rental re­turns, in­cluded in the H1 bud­get, achiev­ing an oc­cu­pancy rate of more than 68 per­cent.

Al-Mazaya con­sol­i­dated its rental rev­enue pro­ceed­ings from its ex­ist­ing and fully-oc­cu­pied pro­jects by re­new­ing leas­ing con­tracts with its clients at an in­creased rate com­men­su­rate to cur­rent mar­ket prices and match­ing the ser­vices the com­pany is ren­der­ing at its prop­erty, which re­sulted in in­creased op­er­a­tional rev­enues.

Al-Mazaya Hold­ing and Boubyan Bank have signed a part­ner­ship agree­ment whereby the Kuwaiti bank will pro­vide credit fa­cil­i­ties of up to KD 70,000 for prop­erty own­er­ship so­lu­tions out­side Kuwait. Un­der the agree­ment, the bank will pro­vide up to KD 70,000 and free debt in­sur­ance with no salary trans­fer re­quired, which means that the credit is avail­able for all, in­clud­ing those who don’t have ac­counts at Boubyan Bank.

Con­clud­ing, Al-Saq’abi said the com­pany is cur­rently mulling over the pos­si­bil­ity of launch­ing sev­eral in­vest­ment op­por­tu­ni­ties avail­able in the mar­kets it is work­ing at over the com­ing pe­riod, par­tic­u­larly GCC states, where the com­pany boasts max­i­mum cred­i­bil­ity thanks to its ex­ten­sive ex­pe­ri­ence therein, said Al-Saq’abi. He added that the com­pany is closely fol­low­ing up the on­go­ing de­vel­op­ments in global fi­nan­cial mar­kets and their im­pact on the real es­tate mar­ket in line with its ex­pan­sion plans which are based on the devel­op­ment of strate­gic part­ner­ships and work­ing with lead­ing in­vestors to se­cure the high­est pos­si­ble re­turns in the greater in­ter­est of the com­pany and its share­hold­ers.

En­gi­neer Ibrahim Al-Saq’abi

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