14 February 2017
Represents a 5.6% profit increase compared to 2015

On-going focus on revenue diversification to drive steady long-term growth

Key Highlights:

· Revenues were higher at AED 749 million, compared to AED 740 million in 2015.

· Net profit for 2016 up 5.6% to AED 206.5 million, compared to AED 195 million in 2015 driven by successful restructuring and diversification strategy.

· EBITDA for 2016 up 2.7% to AED 271 million, compared to AED 264 million in 2015.

· The Company's assets increased from AED 4,211million in 2015 to AED 4,691 million, an increase of 11.4%.

· Shareholder's equity increased from AED 2600 million in 2015 to AED 2,802million as at the end of 2016 resulting in book value of AED 1.08per share (as at 31st December 2016) compared to AED 1.00 as at 31stDecember 2015, an increase of 8%.

· Basic earnings per share were AED 0.079 compared to AED 0.075 in 2015, on a capital base of AED 2.600 million.

Note: FY 2015 figures have been adjusted to reflect the Bonus shares issued in 2016 Annual General Meeting

Abu Dhabi, UAE - Manazel Real Estate PJSC (”Manazel”), a leading UAE developer, today announced its results for the twelve months ended 31 December 2016.

Growth in earnings reflects a robust performance for the year as net profit grew 5.6% to AED 206.5million from AED 195 million in 2015, driven by the benefits of a successful restructuring strategy. Manazel delivered higher consolidated revenues for the period at AED 749 million compared to AED 740 million in 2015 driven by the construction progress and successful sales of 90% of the Al Reef-2 project. This success underpins the company’s business and growth strategy and with accelerated construction underway, the project is expected to deliver its first phase in 2017.

Diversity in the company’s projects, the support of subsidiaries’ revenues, commercial and residential properties, cooling and its subsidiaries have all contributed to revenue stability as part of  Manazel’s long term strategy to diversify income streams and underpins the ability of Manazel’s subsidiaries to drive  long term and successful growth.

Commenting on the FY 2016 results, Manazel’s Chairman H.H Mohamed M. Al Qubaisi said:

“Manazel Real Estate delivered a strong performance for 2016 driven by its focused business strategy to diversify its income resources while growing revenues and effectively managing costs.

In pursuit of sustaining and optimizing significant shareholder value, Manazel continues to enrich and diversify its portfolio through the development of real estate and tourism projects with Manazel recently announcing its new coastal project in Ghantoot. Also, the company has started developing its ‘’Manazel Medical City’’ project during 2017 which will have a positive impact on the company’s future performance”.   

Operational highlights

Following the successful handover of Manazel’s Al Reef development, the company focused on its Al Reef 2 project during 2016, which consists of 860 villas located in Samha, near Kizad and Khalifa Port in Abu Dhabi. As of the end of December 2016, Manazel had sold 90% its villas demonstrating the appeal for affordable, quality homes in the United Arab Emirates. Construction progress is moving according to schedule with Manazel opening its Al Reef 2 Showcase Villas to reveal the villa’s interior and exterior design to potential buyers.

The company has also continued fulfilling its strategy to diversify into closely aligned growth sectors with its entry into the healthcare market with its project The Manazel Medical City. The City will comprise specialized healthcare facilities leveraging the growing opportunity for quality healthcare with the roll out of mandatory health insurance across the UAE.

Manazel also focused through the year in growing the recurring rental streams from its portfolio of malls/retail areas through its subsidiary and district cooling assets to ensure revenue stability for future growth.

Manazel Real Estate’s subsidiaries “Manazel Specialists Census International and Manazel Malls contribute to the company’s strong financial performance over both the short and long term. This has been further supported by Manazel’s advanced, energy-efficient cooling plants constructed for its Al Reef, Capital Mall and Prestige Towers developments, with the aim of reducing maintenance and operational costs. This has also provided an additional revenue stream for the company from its clients. 

Manazel Real Estate’s diversification strategy uniquely positions the business to deliver steady and sustained growth in the years ahead.

-Ends-

© Press Release 2017