BoD recommend allocation of 7% bonus

KUWAIT CITY, March 14: The Commercial Real Estate Company has achieved a net profits of KD 19,056,592 (nineteen million and fifty six thousands and five hundred and ninety-two Kuwaiti Dinar) for the financial year ended 31/12/2009 with an increase of 31.7% comparing to the same period of 2008, as the company net profits reached KD 14,465,476 (Fourteen million and four hundred and sixty five thousands and four hundred and seventy six Kuwaiti Dinar). The earnings per share reached 11.53 fils for 2009, comparing to the earnings per share for the same period of 2008, which reached 9.35 fils.
On the other hand, Abdul Fatah M. R. Marafie,  Chairman & Managing Director of the Commercial Real Estate Company, stated that the growth in the company assets and profits led to an increase in the shareholder equity to reach an amount of KD 235,035,351 (Two hundred and thirty five million and thirty five thousands and three hundred and fifty one Kuwaiti Dinar) as at 31/12/2009 with an increase of 7.6% comparing to the same period of 2008; whereas the total company assets were KD 413,035,351 (Four hundred and thirteen million and thirty five thousands and three hundred and fifty one Kuwaiti dinar) at the end of 2009 with an increase of 3.6% comparing to the end of 2008.

Despite the growth of the company assets and shareholders equities, the return on each of them increased during the year 2009 compared to the same period of 2008, that the return on shareholders equities was 8.1% during 2009 comparing with 6.6% during 2008. The return on total assets was 4.6% during 2009 comparing with 3.6% during 2008.

Marafie announced that the board of directors recommended the allocation of 7% (bonus shares) of the paid-up capital, i.e. 7 shares per 100 shares, provided that such dividends should be subject to the approval of the regular and irregular general assembly, whose date would be determined later. He also reported that the value of the dividends recommended by the Board of Directors had taken into consideration the standards of comparison between the internal resources and the future expectations of the company in addition to the cost of the shareholders' invested funds in order to face the situations of the local market now and in the future.

On the other hand, Marafie pointed out that an another achievement should be added to the above achievements concerning the company debts and obligations as the company management was able to reschedule a significant part of the short-term debts to long-term debts, which positively and enormously affected the company financial statements and cash flows as well as improving the operating capital. The rescheduling process was accompanied by a reduction in the ratio of debt cost and the ratio of debts to shareholders equities.

Commenting on the achieved results Mr. Abdul Fatah M. R. Marafie confirmed that the results has reflected the efforts made to achieve the sought goals in context of the commitment stated strategy of the company, which focused on the continuous quest to seize promising investment opportunities and bring added value to shareholders funds.

In addition to adopting a conservative policy aiming to protect the shareholders equities and presenting the real value and power of the company assets, taking such principle into consideration and in order to implement the international standers, after performing a careful study for the situation of these assets; the necessary provisions were deducted, as shown in the company's financial statements, in order to face the adverse results of the global economic crisis and its impacts on the global economy.

In addition, Marafie indicated that the Commercial Real Estate Co. would continue its journey both locally and regionally and work hard to participate in the real estate development in the State of Kuwait through its real estate projects with their distinctive mark.

In this frame, the Commercial Real Estate Company, on the local level, continue carrying-out its various real estate projects, including Symphony Complex which includes Missoni Hotel. The complex is located in Al Salymia area and directly overlooks at Salem A l Salem Al Mubark Street on one side and at the Arabian Gulf Street on the other as the company has started to conclude contracts with the tenants. Symphony Complex with its unique design is considered one of the achievements of Commercial Real Estate in the real estate development in Kuwait as it was constructed based on the most modern building intelligent systems.

© Arab Times 2010