Chairman reveals highly commendable performance indicators at annual meeting

Abu Dhabi, UAE, 12 May 2010:  The Board of Reem Investments PJSC, the Abu Dhabi-based investment company, has announced profits of AED 238.7 million for the financial year 2010 at its annual general meeting on 11 May 2011.  This represents a return on equity of 5% and an EPS (Earnings Per Share) of AED 1.53.

Commenting on the company's financial performance, its Chairman, H.H.Sheikh Tahnoon Bin Zayed Al Nahyan, said: "Reem Investments was able to put in a strong performance as a result of conservative measures we had taken in previous years to protect ourselves from market forces.

"These measures included our master development policy to sell land plots to strong established players as well as our decision not to revalue our land at Najmat Abu Dhabi during the boom times in order to post healthier profits.  Last but not least, we adopted measures to control costs and followed a prudent investment strategy.  Our strong financial position is proof that we are well equipped to meet the demands ahead as we look to build on our ongoing development and exploit new business opportunities."

In his annual report, the company's Managing Director, Abdulhamid M. Saeed, explained that Reem gave priority to the successful execution of the infrastructure works on its projects.

In April 2010, the company successfully completed the infrastructure works in Rawdhat, one of the two mega projects being undertaken in the UAE capital by its real estate arm, Reem Developers.  By the end of 2010, Reem had completed 90% of Phase 1 infrastructure works at Najmat and had also commenced Phase 2 infrastructure works, which included the beaches at the Reem Island project.

Abdulhamid also said that on the investment front Reem had maintained a conservative approach.  In 2010, the investment team contributed AED 49.6 million to the group income through the sale and realisation of its investments.  Moving forward in 2011 he said the team will examine and exploit new areas such as healthcare, education, and logistics among others in order to diversify its income streams.

At a separate Extraordinary General Meeting on the same day, shareholders accepted the company's proposal for a capital reduction of 50%.  The capital reduction will be achieved by returning the surplus capital from the cash reserves accumulated over the years.  From 2007 to 2009, the company distributed 40% dividends.  With this capital reduction Reem Investments will have returned a total of 90% of the original invested capital.  The company expects that the return on equity, earnings per share and BVS will be further enhanced by this exercise.

The Annual General Meeting and the Extraordinary General Meeting took place yesterday (Wednesday 11 May) in the new Clubhouse alongside the Dome@Rawdhat, where the company has created a vibrant sporting community beside Airport Road, at the entrance to Abu Dhabi.    

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About Reem Investments
Reem Investments, established in May 2005, is a privately held company with a paid-up capital of AED 1.555 billion.  It is primarily involved in the real estate and financial investment sectors. Reem Developers, its real estate arm, is the masterplan developer for two mega projects - Najmat on Reem Island and Rawdhat along Airport Road.

Comprising a total of about 60 million sq ft of GFA, these projects are on track and are making their mark on the Abu Dhabi real estate landscape in terms of creativity, design and functionality. Rawdhat is located at the prime position at the entrance of Abu Dhabi. The USD 5 billion master development is spread over 28 hectares with a total GFA of 9 million sq ft.   

© Press Release 2011