Reem Investments announce “strong financial position”
US $68 million profit for last financial year
Abu Dhabi-based investment company Reem Investments PJSC, has announced profits of almost US $68 million for the financial year 2010.
Managing director Abdulhamid M. Saeed said the company had given priority to infrastructure works on its projects, particularly at Rawdhat one of two UAE megaprojects, undertaken by real estate arm Reem Developers.
The company reported 90% of the phase one works has been completed and that work had begun on phase two; which includes the beach and Reem Island project.
“Reem Investments was able to put in a strong performance as a result of conservative measures we had taken in previous years to protect ourselves from market forces,” said company chairman H.H.Sheikh Tahnoon Bin Zayed Al Nahyan.
“These measures included our master development policy to sell land plots to strong established players as well as our decision not to revalue our land at Najmat Abu Dhabi during the boom times in order to post healthier profits,” he added.
Reem’s investment arm contributed $13.5 to the group income through the sale and realisation of its investments, with the focus for 2011 on healthcare, education, and logistics to diversify operations further.
Shareholders have also accepted Reem’s proposal for a capital reduction of 50%, to be achieved by returning the surplus capital from accumulated cash reserves.
From 2007 to 2009, the company distributed 40% dividends. With this capital reduction Reem Investments will have returned a total of 90% of the original invested capital.
“Our strong financial position is proof that we are well equipped to meet the demands ahead as we look to build on our ongoing development and exploit new business opportunities.”
