Reports a net profit of AED 7.75 million for the first quarter 2018 versus a net loss of AED 0.95 million for the same period last year
Achieved more than 90% occupancy in its hospitality and leasing business
Remains on track and within budget on its various project developments in Abu Dhabi and Dubai; Marina Rise project in Reem Island on track for delivery in Q2 2020
Abu Dhabi, UAE: Eshraq Properties PJSC (“Eshraq” or “Company”), the Abu Dhabi based real estate company listed on Abu Dhabi Securities Exchange (“ADX”), continues its turnaround strategy under the new leadership as it reported its fourth continuous profitable quarter. The Company achieved a net profit of AED 7.75 million for the first quarter 2018 vs a net loss of AED 0.95 million for the same period last year.
In commenting on the results, Eshraq’s Chairman Mr. Jassim Alseddiqi said: “We are very proud of Eshraq’s turnaround and remarkable performance over the past twelve months. The results show a stellar return to profitability compared to the same quarter last year. We are committed to making Eshraq one of the most coveted real estate developers in the UAE and to deliver significant returns to Eshraq shareholders”.
Eshraq is on track and within budget on its development projects in Abu Dhabi and Dubai. On Eshraq’s Marine Rise project on Abu Dhabi’s Reem Island, the shoring works are currently in their final stages. Eshraq expects construction of this project to be completed by Q2 2020. The company is also on track to appoint a new contractor for its project in Jumeirah Village Circle, Dubai by the end of Q2 2018. The Company is in the final stages of awarding the design contract for its flagship Gateway project in Abu Dhabi, Maqta area by the end of Q2 2018.
Eshraq’s hospitality and leasing business has maintained above 90% occupancy levels across all its assets in Dubai and the US.
On macro front, Eshraq remains optimistic of the income yielding real estate investment opportunities in UAE. Eshraq’s unlevered financial position is ideal to benefit from such opportunities and consequently, the Board has mandated its Investment Committee to seek income generating investments in the UAE. In the meantime, the Company is working on optimizing its capital structure and has deployed excess cash in high return investments and term deposits. The Company is also exploring options to cross-list its shares in Saudi Arabia and is in the process of appointing a financial advisor for that purpose.
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