PHOTO
Kuwait: National Real Estate Company (NREC) today held its Ordinary General Assembly Meeting of shareholders for the financial year ended 31 December 2020, which approved the Board’s recommendation to distribute 5% bonus shares, i.e., 5 shares for each 100 shares. The meeting took place electronically due to the current precautionary measures being implemented because of the COVID-19 situation.
NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, said: “In 2020, Management has executed several mitigating strategies and risk measures that have helped the Company overcome the economic and social challenges that have resulted from the COVID-19 crisis."
“Safeguarding the Company’s financial health, adjusting the cost structure, maintaining employment, and securing sustainable operations, have been our top priorities in 2020.”
Sultan added: “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. We remain focused on enhancing the performance of our operating properties and the development of our landmark projects Reem Mall in Abu Dhabi and Grand Heights in Egypt."
Debt Restructuring
“In 2020, Management restructured a major portion of the Company’s debt with a local bank. The goal was to reduce liquidity risk and to support sustainable operations, given the overall impact of the current health and economic crisis. This resulted in extending the debt maturity and re-classifying the long-term portion of the facilities from current to non-current liabilities”, said Sultan.
Reem Mall
Located in 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.
“Construction and pre-leasing at Reem Mall are progressing well, with a target project completion towards the end of 2021. Construction progress is currently nearing 90%.”
Grand Heights
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 3.8 million square meters and caters to the housing needs of a growing population in Cairo and its suburban areas.
Sultan stated: “Total sold units across the entire project in Egypt stood at 4,790 and the remaining unsold units stood at 6,008 as of 31 December 2020. Moreover, KUWADICO distributed dividends during 2020, for the first time.”
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 resort.
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.
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.
2020 Financial Highlights
- Operating Revenue stood at KD16.9 million
- Net Profit of KD 443 thousand
- Earnings Per Share (EPS) of 0.31 Kuwaiti Fils
- Total Assets of KD 491 million
- Net debt to equity ratio of 0.42
- Shareholders’ Equity attributable to the Parent Company of KD 274 million
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 22.34% 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
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
