Manama: Esterad Investment Co. B.S.C. (“Esterad” or “the Company”) (Trading Code: ESTERAD) today announced its financial results for the fourth quarter (“the quarter”) and the full year (“2024”) ending December 31, 2024.

Net profit attributable to shareholders was BD 3,810,244 for the fourth quarter of 2024, compared to BD 3,576,993 for the same quarter in 2023, reflecting a robust 7% increase. The strong performance was driven by enhanced profits from the Company’s investment activities, as well as higher returns from its real estate and equity portfolios. Notably, the quarter’s results benefited from the successful exit from a major real estate portfolio, which Esterad acquired and successfully transformed into a high-value investment under its management. Additionally, the Company’s financial performance was positively impacted by income generated from Esterad Bank, including returns related to a legacy exit and the closing of a US$73 million multifamily housing investment in the United States. Earnings per share for the fourth quarter increased to 24.76 fils, compared to 23.25 fils in Q4 2023. Total comprehensive income attributable to shareholders for the quarter stood at BD 3,687,402, compared to BD 3,688,549 for the same period last year, a slight decreased by 0.03%. Total income for the fourth quarter surged to BD 5,321,046 marking a significant increase of 7% from BD 4,909,247 in Q4 2023.

For the full year 2024, Esterad reported net profit attributable to shareholders of BD 6,133,826 reflecting a strong 11% year-on-year increase compared to BD 5,524,450 in 2023. Earnings per share for the year was 39.90 fils, compared to 37.70 fils in the previous year. Total comprehensive income attributable to shareholders reached BD 5,379,133 an increase of 15% from BD 4,697,669 in 2023. Total income for the year grew 60% to BD 12,752,971 a substantial increase from BD 7,977,110 recorded the previous year.

Total assets were BD 93,100,840 as of 31 December 2024, compared with BD 119,858,511 at 31 December 2023, a decrease of 22% which was primarily a result of sale of a real estate portfolio.  Total liabilities decreased by 42% to BD 42,017,033 from BD 71,996,492 in 2023, primarily as result of early repayment of a bank financing facility of BD 30,160,000 resulting in significant deleveraging, derisking and strengthening of the Company’s financial position. Total equity attributable to owners of the Company increased by 8% to BD 43,377,483 from BD 40,198,706 in 2023 corresponding to an increase in the Company’s book value by 3% to BD 0.282 (Fils) per share from BD 0.275 (Fils) per share in 2023.

Commenting on the results, Mr. Hisham Alrayes, Chairman of Esterad, said, "We are pleased to report another year of strong financial results, with net profit increasing by 11% and total income rising by 60% in 2024. These results reflect the continued strength of our investment strategy, disciplined execution, and ability to capitalize on market opportunities in order to deliver solid returns and another sound dividend for our shareholders for the year."

"Our real estate and private equity investments have been key drivers of performance, supported by strong asset management and successful exits. The well-timed sale of a major real estate portfolio, a project we transformed from a distressed acquisition into a high-value luxury development, demonstrates our ability to identify and create value through strategic investments. In addition, our financial assets, including our investment in Esterad Bank, have contributed positively to results as the Bank made significant progress in its transformation and financial turnaround, with a return to profitability in the fourth quarter and significant strengthening of its balance sheet and financial position by year-end."

“As we build on this momentum across the portfolio in 2025, Esterad remains well-positioned to deliver sustainable growth and long-term value for our shareholders.”

He concluded by saying, “As a result of the Company’s success, stability and strength of earnings, the Board of Directors recommended the distribution of cash dividends of 15% of the capital, equivalent to 15 fils per equity share, and bonus shares of 5%, equivalent to 5 shares for every 100 shares owned for the fiscal year 2024 for the shareholders registered with the company on the record date. However, this recommendation is subject to the approvals of the regulatory authorities and shareholders at the Annual General Meeting’’.

Adding, Mr. Ahmed Abdulrahman, CEO of Esterad, said, "Esterad’s strong financial results for 2024 reflect the solid progress we have made across all areas of our business. Through a sustained focus on effective management and value creation, we have delivered strengthened performance across our portfolios, generating strong returns and unlocking value."

“At Esterad Bank, we made positive steps throughout 2024 in our restructuring activities, which saw the Bank deliver profits in the fourth quarter. This was an important milestone supported by a number of key transactions during the quarter. We have successfully exited from a legacy asset, returning capital to investors, and completed one of our most significant investments to date—a US$73 million acquisition in the U.S. multifamily housing sector. The investment was met with strong demand, highlighting investor appetite for high-yielding, well performing alternative assets and, importantly, growing trust and confidence in the Bank and our ability to deliver sounds and unique opportunities. Additionally, during 2024 we significantly strengthened the Bank’s financial position, recapitalizing and deleveraging its balance sheet and returning the Bank to positive equity, marking a major milestone in its strategic transformation.  As we move into 2025, Esterad Bank has a robust pipeline of opportunities, with several transactions expected to start closing within the first half of the year and onwards. Throughout 2025, we remain focused on strengthening the Bank’s operational foundations, with an eye towards further enhancing its financial position and performance.”

He added, “The successful turnaround and sale of a major real estate portfolio was another significant milestone and success for the Company in final quarter of the year. The work we did since acquisition of the project and this well timed and profitable exit underscores our ability to identify and execute high-value real estate investments. By transforming this asset from a distressed acquisition into a landmark waterfront project that sets a new standard for luxury beachfront living in Bahrain, we have demonstrated our expertise in real estate investment and development. We will continue to leverage this expertise to undertake and deliver further high-value real estate projects that align with our investment strategy and where we are confident to replicate success.”

Concluding, Mr. Abdulrahman said, “Looking ahead, Esterad remains committed to building on its momentum, expanding and optimizing its portfolio, and delivering long-term, sustainable value for its shareholders. We will continue to identify new opportunities, execute high-yield investments, and further strengthen our financial position to drive another year of strong performance in 2025 and beyond.”

Note: The press release and the full financial statements are available on Bahrain Bourse’s website.

About Esterad Investment Co. B.S.C. (ESTERAD)

Esterad Investment Co. B.S.C. (“Esterad”) is a leading investment firm and one of the oldest to be established in the Kingdom of Bahrain. Founded in 1973 and listed on the Bahrain Bourse, Esterad has pioneered investments into key national projects and industries and has a long and proven track record of making secure investments in a variety of assets, regionally and internationally. Esterad’s investment divisions include Real Estate, Private Equity and Public Market investments. The Company invests proprietary capital across a broad spectrum of real estate assets in lucrative locations and sought-after destinations. It also leverages its extensive experience and expertise in multi sector private equity, investing in diversified industries including Infrastructure, Technology, F&B, Services, and Real Estate across the GCC. Esterad’s Public Instruments division invests capital in both equities and fixed income securities in Bahrain as well as in regional and global markets. With an ambition rooted in transformative investments in Bahrain and beyond, Esterad’s world class management team selects investments based on stringent risk parameters, and the value it can add for shareholders, and the economies and societies in which it operates and serves.

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