16 November 2015
Kuwait: ALARGAN International Real Estate Company (AIREC) has recorded a net profit of KD 24.3 million and 95.01 fils earnings per share for the nine months ending 30 September 2015.

Witnessing robust growth, AIREC achieved this with an increase in gross operating profit of 157.24%and net operating profit of 636.63% for the nine months ending September 30, 2015 compared to the same period of last year. The rise in net profit in 2015 resulted primarily from the concluded deal of selling 92.5% of the total shares owned in a real estate fund (wholly owned by the parent company and its subsidiaries) by an associate company in Saudi Arabia.

Financial ratios of the Company as of September 30, 2015, shows a positive growth compared to the same period of 2014. Total current assets increased by 42.15%, with growth seen in total assets by 6.39%, while total current liabilities decreased by 43.63% and total liabilities decreased by 19.14%. Equity attributable to the parent company rose by 33.22%, despite AIREC distributing a dividend amounting to KD 5.1 million, equivalent to 20 fils per share for the fiscal year 2014.

As part of executing AIREC's strategy for the next five years, focusing on optimizing the best use of financial resources, the company reduced its debt to equity ratio to 0.45 compared to 0.81  as of December 31, 2014, through settlement of KD 18 million from the total facilities granted to the company. The company has released the guarantees provided in relation to those facilities, amounting to KD 9.83 million as of September 30, 2015, in order to increase the free unencumbered asset base to enhance shareholder value.

Commenting on AIREC's positive performance, Eng. Khaled Al-Meshaan, CEO and Vice Chairman of the Board of Directors of AIREC, said: "ALARGAN International's success mirrors the company's aim to be the leading regional real estate developer and to deliver superior value to our stakeholders by achieving 40 fils earnings per share and a distribution of 20 fils per share by 2020, and to do this while maintaining our transparency with all stakeholders about all financial announcements."

He reaffirmed the company also aims to reinforce its national presence, expand its in-home expertise, and strengthen its network of branches and sister companies.

"The financial results justify ALARGAN's plans to diversify its investments on both categorical and geographical levels, without losing sight of our main field of business that focuses on delivering affordable middle income housing solutions," Al-Meshaan added.

Regarding the company's current projects, ALARGAN International will be launching soon a new commercial Complex in Kuwait, "ARGAN Square," which will be an important addition to the group's stable income generating assets. Located in the commercial area of Salmiya, and overlooking the panoramic sea view of the Gulf road, ARGAN Square will be designed to offer Kuwait's youth a vibrant destination where they can socialize, shop, study and host all their activities.

-Ends-

Note to Editor:
ALARGAN International Real Estate Company is a leading real estate company based in Kuwait and focused on the development of affordable and middle income housing in the GCC. The company strives to integrate its motto, 'Life... As You Love It', across its projects by creating "live, work, play and savor" environments that present a unique lifestyle experience. The company also endeavors to pass on its sustainability values to the community by including green and energy efficient initiatives in its projects. The only company in Kuwait to obtain Platinum ranking for the Leadership in Energy & Environmental Design (LEED) program, which is awarded by the U.S. Green Building Council (USGBC). ALARGAN follows a balanced investment strategy, and tries to seize opportunities with stable and superior returns based on the market's investment cycle. Its projects are diverse and located across the Gulf region, including the State of Kuwait, the Kingdom of Saudi Arabia, the Kingdom of Bahrain and the Sultanate of Oman, delivering popular hotels resorts, widely visited shopping and food destinations, large development communities, and middle income level residential housing.

© Press Release 2015