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- Operating Revenue: KD 17.8 million
- Net Profit: KD 225 million
- Total Assets: KD 700 million
An increase of 7428% in NREC’s profits for the nine-months period ended September 30,2021 and of 6173% for Q3 2021, compared with the same periods in 2020
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 30 September 2021. The Company announced a net profit of KD 216 million and an EPS of 146 fils for the third quarter of 2021, and a net profit of KD 225 million and an EPS of 151 fils for the nine-months period ended September 30, 2021.
The Company’s operating revenue came in at KD 17.8 million for the nine-months period ended September 30, 2021, an increase of 77% compared to the same period in 2020. Total assets reached KD 700 million by September 30, 2021.
NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, said: “Q3 2021 saw further progress towards a post-COVID-19 business environment and more lifting of health restrictions. This continued economic recovery supported the Company’s operating results for Q3. Management will keep on implementing resilient strategies to maximize value for the Company’s shareholders.”
Impact of the sale of a business unit division by an associate company
Sultan added: “A one-time deal made by NREC’s associate company Agility Public Warehousing Company K.S.C.P. was also reflected in Q3 results. Agility has sold its entire equity interest in Global Integrated Logistics (GIL) to DSV Panalpina, for a total consideration of around KD 1.5 billion, resulting in a gain after tax of around KD 897 million. The sale consideration was received in the form of allotment of 19,304,348 shares in DSV.”
“The impact of this deal on NREC’s financial statements was recognized in Q3 2021”, said Sultan.
Strategy of debt reduction to below KD 100 million
“The Company remains focused on its strategy of Debt Reduction to below KD 100 million in addition to an overall reduction of total company’s liabilities and expenses, which will strengthen NREC’s cash position.”
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 adheres to the strict application of the rules of governance.”
Landmark Projects
“We remain focused on enhancing the performance of our operating properties and the development of our two landmark projects Reem Mall in Abu Dhabi and Grand Heights in Egypt”, said Sultan.
Reem Mall - A completion rate of more than 97% – A highly automated unique logistics hub
“Construction and pre-leasing at Reem Mall are progressing well, with a target project completion towards the end of 2021”, said Sultan.
“Completion rate was more than 97% as of the end of September 2021.”
“One of Reem Mall’s unique features is its state-of-the-art logistics hub, which is a highly automated warehouse that will support shipments from the mall’s stores to shoppers’ doors across the UAE.”
Located on Reem Island in Abu Dhabi, Reem Mall is a major new retail, leisure, dining and entertainment destination that comprises 450 stores and has a confirmed tenant-mix of leading retailers in the region and world.
“We remain optimistic about the successful transition of Reem Mall from a construction project to an operating asset, which will contribute to the growth in the Company’s revenues for future years.”
Grand Heights – The development and delivery of residential units continues to progress
In Egypt, the Company’s mega-residential project, Grand Heights, reached an advanced phase of development and delivery of residential units. Grand Heights is part of a larger plot owned by NREC’s subsidiary KUWADICO, and in which three sub-developers are developing various portions. The project covers a total of of 3.8 million square meters and caters to the housing needs of a growing population in Cairo and its suburban areas.
Sultan said: “The percentage of units sold across the whole project as of the end of Q3 2021 was more than 58%.”
Strengthening the financial position by diversifying operational sources of income
Sultan said: “Reem Mall and Grand Heights are significant investments that will support NREC in growing and diversifying its sources of operating cash flow in the coming years.”
In Kuwait, NREC manages the waterfront destination, Souq Sharq, and the El Joan resorts.
South Aqaba Investment Park: Occupancy rate of 93% for warehouses, and 100% for industrial buildings
In Aqaba - Jordan, NREC’s subsidiary owns and operates the South Aqaba Investment Park, a 1.5 million square meters property dedicated for warehousing, factories, companies and logistics in an attractive investment climate that provides access to major international markets and Free Trade Agreements. “Occupancy rate as of the end of Q3 2021 was 93% for warehouses, and 100% for industrial buildings”, said Sultan.
In Libya, Palm City Residences is the first fully operational project to be developed by the NREC’s joint venture in Libya, Mediterranean Investments Holding p.l.c. (MIH). This residential project is offering high-end facilities and security on the Mediterranean coastline in Janzour, a suburb of Tripoli.
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. 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., which is one of the leading logistics companies in the world.
-Ends-
For more information, please contact:
Mageda Abbas – M: +965 66878225 – m.abbas@nrec.com.kw
© Press Release 2021
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