NREC announces 4.4% growth in net profit
National Real Estate Company (NREC), a leading regional and developer with $2 billion in projects under development in the UAE, Egypt, and other markets, yesterday released its financial results for the year 2016. 2016 Financial Highlights Operating Revenue: KD33.9 million, up 19.2% EBITDA: KD19.9 million, down 10.0% Net Profit to shareholders: KD16.1 million, up 4.4% Earnings Per Share (EPS) of 17.14 fils.
The company’s 19.2 percent 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. NREC CEO Samuel Sidiqi said, “Though the regional macroeconomic business environment hasn’t improved, we are pleased with the above-peer performance of our properties and sales activities. Our diversified asset portfolio continues to show its resilience, yielding a double digit growth in operating revenues and continued profitability for five years in-a-row. Our business is healthy and standing on solid fundamentals.
Looking ahead, we expect to start construction of Reem Mall through a strong support of equity and debt financing. Reem Mall has further been bolstered by a key senior management hire and recently announced partnerships with Dubai Holding Group, Landmark Group and Majid Al Futtaim Retail. In Egypt, where we see a stabilizing economy and currency, and a revived demand on residential real estate, we expect a robust performance in 2017 and beyond.”