NREC announces net profit of KD0.6 million for Q1/2020 and net loss of KD0.5 million for H1/2020

The Company announced a net profit of KD 574 thousand for the first quarter of the year 2020, and a net loss of KD 454 thousand for the first half of 2020

  
NREC Vice Chairman and CEO, Faisal Jamil Sultan Al-Essa

NREC Vice Chairman and CEO, Faisal Jamil Sultan Al-Essa

Kuwait: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 results for the three-months period ended 31 March 2020, and the six-months period ended 30 June 2020. The Company announced a net profit of KD 574 thousand for the first quarter of the year 2020, and a net loss of KD 454 thousand for the first half of 2020.

The Company’s operating revenue stood at KD 5.9 million in H1 and its total assets reached KD 481 million by June 30, 2020. 

NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, said: “Although the COVID-19 outbreak and the resulting measures to contain the virus, taken by governments of various countries where NREC operates, have negatively affected our business in the first half of 2020, the Company’s Management has assessed the existing and anticipated effects of this situation on the Company’s activities and has taken the needed mitigating actions."

“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."

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.

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.”

In Kuwait, NREC manages the waterfront destination, Souq Sharq, and the El Joan resort. In Jordan, the Company operates the South Aqaba Investment Park, a 1.5 million square meter property dedicated to warehousing, factories, companies and logistics services. In Libya, NREC’s Palm Residences is a residential compound offering high-end facilities and security on the Mediterranean coastline in Janzour, a suburb of Tripoli. In Erbil, Iraq, the Company owns a partially developed 104 thousand sqm property situated along an important road and is seeking further development opportunities on the site.

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.

-Ends-

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

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