National Real Estate Company (NREC), currently developing projects valued at over USD 2 billion in the Middle East and North Africa region, reported its financial and operational earnings for the year ended 31 December 2019. The Company announced a net profit of KD 11.2 million and an EPS of 8.39 fils in 2019, compared to a net profit of KD 10.5 million and an EPS of 7.55 fils in 2018.
The Company’s operating revenue stood at KD 17.2 million in 2019 and its total assets reached KD 482.9 million by December 31, 2019.
NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, said: “NREC 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."
NREC has progressed in the development of its landmark project, 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.
In Egypt, the Company’s mega-residential project, Grand Heights, reached an advanced phase of development and delivery of residential units. The project covers a total of four million square meters and caters to the housing needs of a growing population in Cairo and its suburban areas.
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.”
“During the year, NREC exited from one of its investments, and a major part of the proceeds was used towards the reduction of debt. Our debt with local financial institutions in Kuwait was reduced by KD 5.8 million and our total debt and liabilities collectively were reduced by KD 9.4 million.”
In Kuwait, NREC manages the waterfront destination, Souq Sharq, and the El Joan resort. In Jordan, the Company 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, NREC’s Palm Residences is a residential project offering high-end facilities and security on the Mediterranean coastline in Janzour, a suburb of Tripoli. In Iraq, the Company operates an existing property and is seeking new investment opportunities in close to largest and busiest ring road in Erbil.
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, currently developing assets exceeding USD 2 billion. 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.
© Press Release 2020