Leading Kuwaiti developer National Real Estate Company (NREC) has recorded excellent growth in FY 2021 with its net profit attributable to the owners of the parent company ballooning to KD199.6 million ($654.3 million) from KD443,000 ($1.45 million) last year.

A major player in the region, NREC is currently developing various mega projects in the Middle East and North Africa region. It also has a strategic investment in Kuwaiti logistics group Agility Public Warehousing Company.

Announcing its financial and operational results for the year ended December 31, 2021, NREC said its

operating revenue came in at KD32.5 million, up 93% compared to the previous year. Its total assets too netted solid growth hitting KD654.2 million, up 33% over 2020.

The Kuwaiti group had registered an EPS of 134.5 fils in 2021 compared to 0.3 fils the year before.

Impressed with the results, NREC’s board of directors has recommended the distribution of 20% bonus shares (20 shares for every 100 shares) for the year. This recommendation is subject to the approval of the General Assembly.

NREC Vice Chairman and CEO Faisal Jamil Sultan Al Essa said: "Through another year of extraordinary circumstances, NREC’s Management proved once again that our dedication to putting our stakeholders’ interests first, acting with integrity, and delivering enduring value not only guides us through uncertain conditions, but enables us to thrive."

"During the fiscal year 2021, we have remained focused on maintaining our longstanding priorities of maximising value for our shareholders, safeguarding the Company’s financial health, preserving employment, and securing sustainable operations," observed Al Essa.

On the Agility investment, Al Essa said: "In addition to its core real estate business, NREC is the largest shareholder with a 22.3% share in Agility Public Warehousing Company. Agility operates and invests in companies that transform supply chain by making them smarter, faster, cleaner, fairer and more efficient."

"Agility has an enviable track record of growth and sustained value creation for its shareholders, and has positioned itself as a leading provider of supply chain services, infrastructure, and innovation," he noted.

Agility’s profile includes a number of businesses including the Agility Logistics Parks, Tristar, National Aviation Services (NAS), UPAC, and Global Clearinghouse Systems.

According to him, NREC’s strategic investment in Agility dates back to 1997. As on December 31, 2021, this investment stands at KD467 million on the company’s books, with a current market value of around KD600 million, which is around 6 times the current corporate debt.

"This investment has generated an IRR of 15% since inception and cash returns equating to 1,000%”, revealed Al Essa.

NREC was ranked third in Kuwait and 29th in Mena region on Forbes Middle East “Top Real Estate Developers in Mena 2021, list. Companies under this category were ranked based on financials, total assets, market value and revenues.

Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).