Bahrain's Seef Properties posts $12mln profit

The construction works at Al Liwan project have reached their final stages

Bahraini traders are pictured in Bahrain Bourse in Manama, Bahrain, November 5, 2020. Image used for illustrated purpose

Bahraini traders are pictured in Bahrain Bourse in Manama, Bahrain, November 5, 2020. Image used for illustrated purpose

REUTERS/Hamad I Mohammed

MANAMA: Seef Properties has reported a net profit and comprehensive income of BD0.88 million attributable to the parent during the fourth quarter of 2020, compared with BD3.86m for the same period of the previous year, with a decrease of 77.13 per cent mainly attributable to revaluation of investment properties during these current conditions.

Diluted earnings per share attributable to the parent for the fourth quarter of 2020 amounted to 1.92 fils, compared with 8.39 fils for the same period the previous year.

Operating profits stood at BD3.20m for the quarter, compared with BD3.65m for the same period in the previous year, with a decrease of 12.18pc.

Net profit and comprehensive income attributable to the parent was BD4.52m for the year ended December 2020, compared with BD10.93m for 2019, with a decrease of 58.59pc.

This decrease is mainly attributable to the repercussions of the Covid-19 pandemic, which include reduction of income due to the introduction of the Tenant Support Fund of BD1.5m, closure of family entertainment centres and decrease in hotel apartment occupancy rates.

Diluted earnings per share attributable to the parent amounted to 9.84 fils for 2020, compared with 23.75 fils for the previous year.

Operating profits for 2020 reached BD10.4m, compared with BD15.13m for the same period of the previous year, with a decrease of 31.23pc.

Total equity (after excluding the equity attributable to minority) for 2020 decreased by 1.54pc, reaching BD152.17m, compared with BD154.54m for the previous year.

Total assets for 2020 decreased by 0.6pc, reaching BD173.28m, compared with BD174.32m for the previous year.

Based on the financial results, the board of directors is recommending the distribution of cash dividends of 5pc, amounting to a total of BD2.3m as well as the allocation of BD0.17m towards the company’s corporate social responsibility programme, in addition to transferring an amount of BD0.49m to the statutory reserve account.

Commenting, chairman Essa Najibi said: “The last quarter of 2020 witnessed a gradual recovery in the real estate, retail and hospitality sectors. This is largely due to the measured return to normalcy witnessed recently and increasing levels of confidence in the local markets, which come as a direct result of key economic stimulus packages introduced by the government.”

Mr Najibi added, “This has enabled us to absorb the unfavourable circumstances whilst minimising our losses. The secret to our success also lies in our unwavering commitment to supporting our tenants, who represent the core of our business models. The company was one of the first to announce the launch of a support fund, which provided tenants significant aid to overcome the challenges of the pandemic while maintaining the momentum of their businesses. This step was undertaken to further enhance our sustainable partnership with our local, regional and global clients, with whom we built strong relationships, some spanning more than two decades.”

“As the new year begins, we remain optimistic and look forward to witnessing the gradual recovery of all sectors, business models and investment portfolios in the kingdom, and for the restoration of the commercial, hospitality, real estate and retail sectors to their state prior to the outbreak of the pandemic. The company will continue to contribute to the development of the national economy and support its growth via expanding the horizons of retail, tourism and entertainment sectors. The company also reiterates its full commitment to comply with all directives by the government to ensure the health and safety of citizens and residents.”

Seef Properties’ chief executive Ahmed Yusuf said: “Thanks to the decisions taken by the board, the company was able to preserve its gains and maintain healthy partnerships with clients and shareholders, despite the Covid-19 outbreak, which necessitated that all businesses adapt to the new market challenges and pandemic realities.”

“The pandemic had a big impact on the company’s operations in the retail and hospitality sectors, as well as the entertainment sector, the latter of which faced full closure and cessation of business since March 2020 to date.

“The retail sector, as seen through the operation of the company’s malls, has reported partial recovery in the last quarter of 2020 due to the gradual growth in confidence amongst consumers and visitors. Throughout the crisis, the company ensured that all the necessary precautionary measures are taken, including comprehensive disinfection and sterilisation procedures at all facilities and common areas of the malls, with strict implementation of all decisions issued by the government.

“Our malls have remained open to all shoppers throughout 2020, continuing to provide a unique shopping experience to all visitors, despite the pandemic. We also maintained excellent occupancy rates, and Seef Malls across the kingdom continue to attract reputed regional and international brands, with new tenants and brands that are entering Bahrain for the first time in 2021, tailored to meet the needs and aspirations of local and regional shoppers.”

Commenting on the latest developments of the multi-purpose Al Liwan project in Hamala, Mr Yusuf said the project is proceeding as planned and has not been affected by the repercussions of the pandemic, affirming that the construction works have reached their final stages.

“Leasing in the project is steadily progressing at the present time, attracting regional and international brands, and Al Liwan will soon become an exceptional commercial, residential and entertainment icon in the Northern Governorate,” he added.

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