Kuwait: National Real Estate Company (NREC) provides the following update on portfolio activity and strategic priorities for the quarter ended March 31, 2026.

Key Metrics

Total Assets:  KD 471 million

Operating Revenue:  KD 0.8 million

Net Loss:  KD 53.8 million (reflecting non-cash share of associate results)

Portfolio Overview

NREC maintains a KD 471 million asset base diversified across real estate, logistics, and infrastructure — spanning Kuwait and select regional and international markets. The portfolio is structured to provide resilient exposure across economic cycles, with an ongoing focus on concentrating capital in higher-returning positions.

Strategic Progress

Global Positioning — Agility Global PLC

NREC's investment in Agility Global PLC anchors its international exposure, providing participation in globally diversified platforms across logistics, aviation services, supply chain infrastructure, and industrial real estate. Near-term, this position is expected to deliver participation in Agility's shareholder distribution of approximately USD 75 million by 21 May 2026.

As of 31 March 2026, NREC held an 18.5% strategic stake in Agility Global, which continues to achieve strong performance across its portfolio companies. For Q1 2026, Agility Global reported EBIT of $103 million, EBITDA of $185 million, and revenue of $1.4 billion. Total assets stood at $13.2 billion and shareholders’ equity at $5.6 billion.

NREC’s Strategic Stake in Makhazen

NREC also owns a strategic 22.3% stake in Makhazen, which has recognized a one-off non-cash charge of KD 233 million in Q1 2026, as part of a strategic balance sheet reset. This charge represents the full write-down of investment property assets and related balances associated with legacy leasehold land disputes in Kuwait.

Makhazen reported revenues of KD 36 million for the first quarter of 2026, adjusted EBITDA of KD 16 million and adjusted net profit attributable to equity holders was KD 7 million for the quarter (after excluding non-recurring items).

Asset Monetization — MIH Libya Exit

During Q2, NREC completed the exit of its MIH investment in Libya at a transaction value of approximately KD 26 million. Initial proceeds of approximately 10% have been received, with the balance expected by 30 June 2026. This exit marks the opening of an active monetization program targeting approximately KD 80 million in additional proceeds over the next two years.

Capital Allocation Priorities

Monetization proceeds are being deployed against three defined priorities: debt reduction, reallocation toward higher-returning opportunities within the portfolio, and direct returns to shareholders where appropriate.

CEO Commentary

"NREC's portfolio has demonstrated consistent resilience, underpinned by diversified exposure across real estate, logistics, and infrastructure — both regionally and globally through our Agility Global position. We have moved from strategy to execution on our monetization agenda: the MIH exit is completed, proceeds are flowing, and our pipeline of further asset realizations is active and advancing. Our capital allocation framework is clear — reduce leverage, redeploy into higher-returning positions, and return capital to shareholders as we create the capacity to do so. We are focused on delivery."

— Faisal Jamil Sultan Al-Essa, Vice Chairman and Chief Executive Officer

Financial Performance

Operating revenue for the quarter stood at KD 0.8 million, consistent with the prior year period. The net loss of KD 53.8 million for the quarter reflects a non-cash share of results from an associate and is not indicative of the underlying operational performance of the Company's core portfolio.

About NREC

Established in 1973 and listed on Boursa Kuwait, NREC is a real estate investment and development company operating across the Middle East and North Africa, with a diversified portfolio spanning retail, commercial, and residential assets.

Investor Contact: Mageda Abbas  |  m.abbas@nrec.com.kw