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Al Nafisi: Al-Mazaya Holding posts 34.7% Profit Leap by End of 2014
Al Saq'abi: Operational activities the driving force behind leap in financial results with excellent strategic planning and management, al Mazaya is the first listed company to announce their year results
•80.7% successfully achieved Islamic loans in 2014
•100% of Office Towers located at the heart of Kuwaiti capital are now occupied
•AED 400.6 million for new financial facilities to be invested in new projects
•5.25% decrease in the cost of funding.
•Commenced the design of new medical center located at Sabah Salim
•Commenced the design of a new residential project at "Al-Mawaleh" area in the Sultanate of Oman.
•Commenced the prequalification of contractors for 4 new buildings at "Dubai Land" dedicated to middle class accommodations.
•Concluded 100% Al-Mazaya Logistic Service Project located in Bahrain preparing to its lease process. 
Al Mazaya Holding Company announced its financial results achieved by end of 2014, following a board meeting held on Sunday, Jan. 18th, 2015. Chairman of the Board, Rashid Jacob Al Nafisi presided the meeting, with the presence of the Board Members and CEO of the Group.
Following the meeting, Mr. Rashid AL Nafisi , the chairman of the company said : "Throughout 2014, Al-Mazaya holding continued to achieve positive leaps in its financial results. The company achieved a net profit of AED 101.23 million by the end of 2014, compared to AED 75.13 million end of 2013, with 16.34 Fils per-share profitability, compared to 12.13 per-share profitability by virtue of the company's focus on operational activities increasing the occupancy rate in its income-generating projects, which ultimately led to an increase in the rental revenues of the company by 33.7%, valued at AED 66.39 million by end of 2014, as compared to AED 49.64 million achieved in 2013. This included the Sky Gardens Project in Dubai International Financial Centre, in which the occupancy rate reached 99%, and Al-Mazaya Towers at the heart of the Kuwaiti capital which is 100% leased now. Not to mention Al-Mazaya projects in a number of the GCC countries such as the KSA and Dubai, in which the company occupancy rates totalled 100%".
As for other project-sale activities of the Company, Al-Nafisi stressed Mazaya was able to achieve good revenues from the sale of the final stage the residential villas of "The Villa" Project in Dubai Land. This is in addition to selling major parts of the second stage of "Queue Point" residential Project at Al-liwan which will be considered upon handing over the project to clients. And the Office Spaces Project at "Mazaya Business Avenue", with revenues earned from the sale operations amounting to AED 137.32 million, achieving operating revenues amounting to AED 208.63 million by end of 2014.
Financial Results
Speaking of the company's financial results materialized by end of 2014, Al-Nafisi said: "The Company was able to maintain steady growth in its operational performance and net profit, in line with its carefully designed smart objectives". Reviewing the remaining details of the company's financial statements last year, he pointed out that: "By end of 2014, the company's total assets amounted to AED 3,278.53 million, compared to AED 2,855.73 million during 2013, with 14.8% increase. The shareholders' equity added up to AED 1,348.96 million end of 2014, compared to AED 1,216.41 million for 2013, representing a 10.9% increase.
The 2014 Achievements:
As for Al-Mazaya's major accomplishments during 2014, CEO, Eng. Ibrahim Abdul Rahman Al-Saq'abi said on this occasion:
•Al Mazaya announced its entry into the Turkish Real-Estate Market, by establishing a Turkish company "Mazaya Turkey Real-Estate Investment" and appointing a CEO, in a promising step to geographically expand and benefit from the promising investment opportunities in the new market.
•Al-Mazaya signed an Alliance Agreement with one of the giant real-estate development companies in Istanbul, whereby Al-Mazaya develops joint ventures, taking advantage of the experience and position of the Turkish company in the Turkish real-estate market.
•The company managed to push forward the timetable for all under-implementation projects, in line with Al Mazaya Logistics Bahrain- a group of industrial units available for rent in Bahrain Investment Port, worth more than AED 75.11 million - in order to speed up the operating / leasing operations, hoping to positively impact company revenues. The project is now 100% completed and is being leased. The company also achieved positive results implementing "Queue-Point" Project in Dubai Land consisting of 38 plots being currently under implementation. The Project so far exceeded 75% of its implementation processes while numerous residential units have been already delivered.
•Al-Mazaya owned a new land in "Sabah Al-Salem" area in Kuwait which spans for 2,000 m² at a strategic location in order to build a sophisticated medical center in line with "Clover" Medical Project at Al-Jabriyah. Al Mazaya announced a contest to Engineering Offices to come up with an original drawing for the Project and accordingly, assigned the selected Engineering Office to commence the design and implementation processes.
•Al-Mazaya concluded 80% of the designs to a new residential project on its own land in Al-Mawaleh (Seeb District) in Muscat, to be implemented on an area of 23.193m², intended to be tendered to the contractors to commence the implementation process.
•Al-Mazaya concluded the designs for 4 new buildings in the Emirate of Dubai (Dubai Land) preparing to commence the implementation processes expected to be completed by end of 2017.
•Al-Mazaya participated in the largest real estate event in the Middle East (Cityscape-Dubai), confirming its presence and persistence amongst major real-estate companies, after having put forward a number of projects for sale and lease.
•Al-Mazaya had broadened its relations with many banks and investors in order to enter into strategic partnerships for the development of its new projects in the Gulf region and the Middle East, in addition to preparing extensive studies for the local, Gulf and regional markets, as a preliminary step to engage in the sectors that will achieve satisfactory returns with a limited risk rate, benefitting from the company's previous experience and the current market factors.
•Al-Mazaya participated in many financial analysts events aiming to attract new segments of shareholders to join its strategic partners and was successfully able to add new shareholders and increase the portion of other current shareholders. These tours aimed to raise the trust in company performance, contribute to its market share, and provoke new investments.
•NBK capital has issued an equity research lately tackling a full study on Al-Mazaya assets, affiliate companies, investment amounts, revenues, current and future projects, gross liabilities and loans reflecting an overall favorable impact and strategic future vision while Al-Mazaya enjoys considerable solvency and a solid financial statement. The NBK study further introduced a straightforward plan that Al-Mazaya had prepared for the forthcoming cash flows and presented the workable methodology that the company adopts to distribute risk and successfully overcome risk. This is accomplished by wisely selecting varied project sites and a well-studied distribution of company returns yielded from rewarding real-estate projects available for sale. The reports assures the Fair Share Value of Al-Mazaya Holdings shares is higher than last weeks' exchange value simultaneous to the release of the report.
Al-Saqabi concluded that Mazaya still has numerous investment opportunities under consideration, which are going to see light in the near future according to the company's strategic plan.
-Ends-
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Fahad Ahmed
SAHARA Communications
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© Press Release 2015
