Kuwaiti developer NREC reports $38.1m nine-month profit
Total assets of $1.8 billion have increased by $39.8 million from December 2014
Kuwait’s National Real Estate Company (NREC) has reported a net profit of KWD 11.6m ($38.1 million) in the first nine months of the year, making the company’s year-to-date earnings its second highest in five years.
The results, reported in a statement, show operating revenues at KWD 14.8 ($48.7 million), marginally higher than KWD 14.7m ($48.3 million) recorded in the same period last year.
EBITDA has come in at KWD 14.4m ($47.3 million), while EDITDA margins are at 57.8% versus 54.9% in 2014.
NREC’s total assets of KWD 565.5m ($1.8 billion) have increased by KWD 12.5m ($39.8 million) from December 2014.
“We are pleased to announce that we’ve recorded our second highest earnings over a five-year period despite the political and security challenges in some of our markets; proving once again that our well-diversified MENA-wide portfolio shields the company from market volatilities while taking advantage of the long-term opportunities that the region presents,” said Samuel Sidiqi, CEO at NREC.
“We continue to make strong progress growing our business across all segments and key geographies. Results from our Grand Heights development in Egypt were in line with our expectations and reflect a strong Egyptian real estate market. Revenues for the nine-month period from our Egyptian subsidiary grew 8.5% y-o-y to KD6.5 million. Strong rental income flows from our domestic operations continued with revenues at KD7.8 million, a 4.6% growth over the same period last year.”
Sidiqi also added that its plans for Reem Mall in Abu Dhabi were rapidly advancing. He confirmed that NREC have signed a contract for enabling works and have issued a tender for the main contract works in order for construction to begin early next year.
Reem Mall is set for completion in the second half of 2018.
