NREC posts KD 7.6 mln net profit in first half - Operating revenues

surge by 52 pct to KD 14.9 mln

16/08/2016 04:44 AST

National Real Estate Company (NREC), a leading regional asset manager and developer with development projects exceeding $1 billion in both Egypt and the UAE, today released its financial results for the first half of 2016.

The company recorded growth in top-line earnings of 52% and a net profit KD 7.6 million. Revenue growth was driven by income generating assets in Kuwait, Jordan and Egypt, where NREC is developing a 3.8 million square meter residential community.

The company is also developing Reem Mall, a two million square foot major shopping destination in Abu Dhabi. Reem Mall will house more than 450 stores including 85 restaurants, a large hypermarket, and family entertainment zones that include the world's largest indoor snow-play park.

H1 2016 Financial Highlights

¦ Operating Revenue: KD 14.9 million, up 52% from H1 2015

¦ EBITDA: KD 9.6 million, down 4% from H1 2015

¦ Net Profit to shareholders: KD 7.6 million, down 1% from H1 2015

¦ Earnings Per Share (EPS) of 8.49 fils Q2 2016 Financial Highlights

¦ Operating Revenue: KD 7.6 million, up 37% from Q2 2015

¦ EBITDA: KD 5.1 million, down 8% from Q2 2015 ¦ Net Profit to shareholders: KD 4.0 million, down 10% from Q2 2015

¦ Earnings Per Share (EPS) of 4.44 fils

NREC CEO Samuel Sidiqi said, "We are pleased to report record revenues for the first half of 2016 with our income generating properties in Kuwait, Jordan Dubai Financial Group sells EFG-Hermes stake to Natixis Dubai Financial Group sold its 11.8 percent stake in Egyptian investment bank EFG-Hermes Holding to France's Natixis under a debt restructuring deal, its parent company said on Sunday. The sale was "consistent with the business plan for Dubai Group, which was agreed with its lenders as part of the restructuring agreement," Fadel al-Ali, Dubai Group chairman, said in a statement. The price of the transaction was not disclosed.

Based on Thursday's closing price, the stake is worth around $107 million, according to Reuters calculations. Dubai Group completed a drawnout restructuring of its $10 billion debt pile in January 2014, with banks extending repayment deadlines on loans so that the group could be given time to sell its assets to raise cash needed to fund the payments.

As part of its restructuring deal, it recently completed the sale of a 48.4 percent stake in Dubai-based Shuaa Capital to Abu Dhabi Financial Group (ADFG) for an undisclosed amount. Dubai Group was obliged to divest its holdings in EFG-Hermes, Shuaa Capital and Bank Muscat this year, al-Ali, who is also chief executive of Dubai Group's parent firm Dubai Holding, said in May. (RTRS) Damac profit Dubai's DAMAC Properties reported a 37.4 percent fall in secondquarter net profit on Sunday. The developer reported a net profit of 886.8 million dirhams ($241.4 million) for the three months to June 30, according to a statement to Dubai's bourse.

This was down from 1.42 billion dirhams a year earlier. EFG Hermes forecast the firm would make a quarterly net profit of 771 million dirhams. (RTRS) Samuel Sidiqi and Egypt performing well despite regional macroeconomic challenges. In Kuwait, rental income was KD 5.3 million, up 4% from the same period last year. NREC Misr continues to perform well, generating half of our H1 2016 revenue. At Grand Heights we have sold 791 units since inception representing a cumulative sales value of EGP 2.55 billion. In Abu Dhabi, Reem Mall has acquired all necessary government approvals and enabling works are currently being completed. We are in the final stages of tendering the remaining works and are pleased to have selected Al Futtaim Carillion as the project's preferred tenderer for construction.

Al Futtaim Carillion has a strong reputation and track record in delivering high quality retail projects in the region including Dubai Mall and Deira City Cen

Arab Times