• EBITDA: KD 9.9 million
  • Total Assets: KD 526.7 million

 

 

Financial Highlights for the Periods Ended June 30, 2022 (Million KD)

 

Item

Q2 2022

 

Q2 2021

 

Variance (%)

H1 2022

 

H1 2021

 

Variance (%)

Revenue

5.9

6.4

-7%

14.2

12.1

18%

Net Revenue

3.5

4.1

-16%

7.1

7.7

-8%

EBITDA

4.9

9.6

-49%

9.9

12.8

-22%

Net Profit

2.1

7.7

-72%

5.4

9.1

-40%

EPS (fils)

1.21

4.34

-72%

3.06

5.09

-40%

Kuwait: National Real Estate Company (NREC), currently developing various mega projects in the Middle East and North Africa region, reported its financial and operational results for the periods ended June 30, 2022. The Company announced a net profit attributable to the owners of the Parent Company of KD 5.4 million and an EPS of 3.06 fils in H1 2022, compared to a net profit of KD 9.1 million and an EPS of 5.09 fils in H1 2021.

The Company’s operating revenue came in at KD 14.2 million for the 6-months period ended June 30, 2022, an increase of 18% compared to the same period in 2021. Total assets stood at KD 526.7 million as of June 30, 2022.

For Q2 2022, the Company reported a net profit of KD 2.1 million, or a profit per share of 1.21 fils, and an operating revenue of KD 5.9 million.

Commenting on the Company’s results, NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, said: “The increase in the Company’s operating revenues in H1 2022 compared to H1 2021, was supported by the performance of the Company’s project Grand Heights in Egypt.”

“However, the overall performance for the first half witnessed an unfavorable impact from the prevailing geopolitical and economic market conditions.”

“We remain intensely focused on operational excellence and cost management, and on delivering on our promises to our stakeholders, despites the persisting challenges of inflation, and the uncertain global macroeconomic outlook”, added Sultan.

NREC’s strategic investment in Agility Public Warehousing Company K.S.C.P.

“In addition to its core real estate business, NREC is the largest shareholder with a 22.3% share in Agility Public Warehousing Company K.S.C.P. Agility operates and invests in companies that transform supply chain by making them smarter, faster, cleaner, fairer and more efficient”, stated Sultan.

“Agility has recently finalized its acquisition of UK-based John Menzies PLC, which will be integrated with Agility’s National Aviation Services (NAS). Once integrated, the combined company will operate as Menzies Aviation and will be the world’s largest aviation services company by number of countries and second largest by number of airports served.”

Sultan added: “Agility’s investment in the aviation sector will add more value to its shareholders, and will hence contribute to the creation of sustained value for NREC’s shareholders.”

The signing of two new banking facilities’ agreements

“Acting in the best interest of our shareholders, the Company has signed two banking facility agreements with two local banks for a total amount of KD 116 M, of which KD 73 M was signed in Q2, 2022, and KD 43 M was signed in July 2022, for the purpose of settling an existing banking facility previously obtained from a local bank and to support the Company’s operations”, said Sultan.

“The goal is to strengthen our financial position by reducing the Company’s liquidity risk, decreasing interest expenses, and increasing the available cash flow, while preparing to seize new investment opportunities”, revealed Sultan.

Sultan added: “This resulted in extending the maturity of our corporate debt, and re-classifying part of the long-term portion of facilities from current to non-current liabilities.”

Short term focus: Exiting certain assets and reducing debt

“Our short term focus continues to be the exiting of certain assets, proceeds of which will be used towards the reduction of a major part of our debt”, revealed Sultan.

Environmental, Social and Governance practices (ESG)

“NREC invests in developments that have a positive impact socially and environmentally, and it takes various initiatives to support social and environmental sustainability. Practices followed in this regard align with the United Nations Sustainable Development Goals (UNSDGs)”, said Sultan.

Sultan added: “NREC also follows and complies with the applicable corporate governance rules.”

Established in 1973 and listed in Boursa Kuwait, National Real Estate Company (NREC) is a real estate investment, development and property manager based in the Middle East and North Africa. The Company’s portfolio comprises a mix of retail, commercial and residential properties in the region. ENDS

-Ends-

For more information, please contact:
Mageda Abbas – m.abbas@nrec.com.kw