Kuwait: National Real Estate Company (NREC) today held its Ordinary General Assembly Meeting of Shareholders for the financial year ended December 31, 2019, 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 as a result of the COVID 19 situation.
NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, said: “NREC has taken the needed risk management measures to overcome the effects of the current Covid-19 situation."
“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.”
“During 2019, NREC completed the exit process of one of our 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 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.
2019 Financial Highlights:
- Operating Revenue stood at KD17.2 million
- Net Profit of KD11.4 million compared to KD10.8 million in 2018
- Earnings Per Share (EPS) of 8.39 fils vs. 7.55 fils in 2018
- Total Assets of KD482.9 million compared to KD477.7 million in 2018
- Net debt to equity ratio of 0.43 compared to 0.5 in 2018
- Shareholders’ Equity attributable to the Parent Company of KD272.6 million compared to KD257.8 million in 2018.
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.
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© Press Release 2020