Bahrain's Seef Properties reports net profit of $7.2mln

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MANAMA: Seef Properties reported net profits and total comprehensive income of BD2.71 million for the six-month period end-June 2020, compared with BD4.72m for the same period in the previous year, with a decrease of 42.63 per cent.

This decrease when compared to last year 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 BD1m, closure of family entertainment centres and decrease in hotel apartment occupancy rates.

Diluted earnings per share for the period ended June 2020 amounted to 5.89 fils, compared to 10.26 fils for the same period in the previous year.

Total equity (after excluding the equity attributable to minority) for the period end-June 2020, has decreased by 2.74pc reaching BD150.31m, compared to BD154.54m last year.

Total assets for the period has increased by 0.59pc reaching BD175.35m compared to BD174.32m last year.

Seef Properties’ chairman Essa Najibi said, “Despite the challenges we experienced in the first half of this year, we have been able to take steady strides to achieve our objectives in accordance with our preset plans and strategies, mainly attaining additional value for our shareholders in the long term through the investment in the development of our operations to bolster growth sustainability and cope with the current and future circumstances. The board had previously launched the Tenant Support Fund of BD1m, which is approximately 38pc of the net profits declared, and initiated a transitional strategy for the redeployment of the company’s resources to curtail the impact of the pandemic on its business model and to enable it to continue towards the future”.

Mr Najibi further added, “Our financial results reflect the robust infrastructure of the Bahraini economy and its ability to withstand crises, owing to the vision set for this sector by the wise leadership over the previous years, and in particular, the support provided to the real estate development, retail, entertainment and hospitality fields, which are at the core of our company’s operations.”

For his part, Seef Properties’ chief executive Ahmed Yusuf said, “The financial results reported in the first half of the year reflect the operational efficiency of Seef Properties amidst the current circumstances.

“We have implemented an advanced programme to increase cost efficiency to counteract the recent decline in profits and revenues.”

He added, “The company’s profitability has been impacted due to the sharp decline in consumer shopping trends experienced in local and global markets due to the pandemic, with the official precautionary measures resulting in closure of food courts, cinemas and family entertainment centres in our malls, in addition to a sizeable decline in hotel occupancy, which are all at the heart of the company’s operations. However, we remain optimistic of achieving better results during the second half of this year, which shall coincide with the gradual alleviation of the precautionary measures and the return to ordinary life, all of which are indications we are currently noticing through the increase in footfall at our malls.”

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