Eshraq Investments records net profit of AED 7.5 mn

Reported net profit of AED 7.5 million for 9 months ending 30 September 2019; continuing the profitable operations trend

  
  •  Marina Rise in Reem Island (Abu Dhabi) is on track for completion in Q4 of year 2020
  • Board of Directors will call for general assembly to approve capital reduction to eliminate accumulated losses by Special Resolution
  • Board of Directors recommends renewal of share buyback program
  • Cross- listing process in Tadawul-KSA to resume after capital reduction
  • Abu Dhabi: Eshraq Investments PJSC (“Eshraq” or the “Company”), the Abu Dhabi based investment company listed on Abu Dhabi Securities Exchange (“ADX”), reported a net profit of AED 7.5 million for the 9-month period ended September 30, 2019, achieving another profitable quarter.

Eshraq’s diversification plans continued to pay off with each of its business divisions recording profitability during the 9-month period. The Company’s leasing and hospitality businesses including its residential apartments in DIFC and Nuran Marina hotel apartments continued to outperform the market through their premium offering and quality, with occupancy rates touching 93% and 89% respectively. Eshraq’s investment portfolio also generated strong income from investments.  

The construction of Marina Rise on Reem Island is expected to top out by the year end and on track for completion by Q4 2020. Marina Rise will be the first development project to contribute to Eshraq’s profit.  Eshraq intends to develop existing and new land banks with the intention of completing one project every 12-15 months.

The Board of Directors resolved to offset losses accumulated during previous years amounting to AED 979,831,540 as at 30/06/2019 against the Company’s paid-up capital and has received in-principle approval from the SCA. This will strengthen the Company’s financial structure going forward and once implemented, will put Eshraq on track towards resuming dividend distributions.

The Board of Directors also approved renewal of the share buyback program, subject to regulatory and shareholder approvals.

In addition, discussions are ongoing with the Saudi authorities and the Company’s advisors in KSA, for the cross-listing of the shares of the Company on the Saudi Stock Exchange (Tadawul), and which cross-listing was previously approved by SCA. Saudi Capital Market Authority’s recent amendments to the Listing Rules on 30/09/2019 has paved the way to allow foreign companies such as Eshraq to cross-list its shares on Tadawul. The proposed plan for a capital reduction and the offsetting of losses will also further the Company’s opportunities in this direction.

-Ends-

About Eshraq Investments:

Eshraq Investments is an investments company with an extensive portfolio of residential, hospitality and other real estate projects. Eshraq also has a diversified investment portfolio across equities, fixed income, private equity and debt products. For further information, please visit www.eshraquae.com

For media inquiries, please contact:
Dhanya Issac
ASDA’A BCW
Dubai, UAE
Tel: 971-4-450-7600
Email: dhanya.issac@bcw-global.com  

© Press Release 2019

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.

More From Press Releases