Monday 13 July 2020

Kuwait NREC's 9-month net profit hits $31m

KUWAIT CITY, November 16, 2019

Kuwait-based National Real Estate Company (NREC), a leading real estate development and property manager based in the Middle East and North Africa (Mena), has reported a net profit of KD9.5 million ($31.2 million) for the first nine months of 2019.

The NREC, which is currently developing projects valued at over $2 billion in the Mena region, boasts a major portfolio comprising a mix of retail, commercial and residential properties in the region.

In addition to its core real estate business, NREC is the largest shareholder with a 22.3% share in Agility Public Warehousing Company, one of the top 15 logistics companies in the world.

Announcing its financial and operational earnings for nine-month period, NREC said its operating revenue stood at KD11.7 million, while the ebitda was seen at KD17 million and the EPS stood at 6.97 fils.

Meanwhile, tthe Kuwait developer said its total assets surged to hit KD467.4 million for the nine-month ending September 30, 2019.

On the solid performance, NREC Vice Chairman and CEO Faisal Jamil Sultan Al Essa said: "NREC remains focused on its strategy of debt reduction to below KD100 million in addition to an overall reduction of total company expenses in bid to strengthen its cash position."

"We remain focused on enhancing the performance of our operating properties and the development of our landmark projects Reem Mall in Abu Dhabi and Grand Heights in Egypt," he added.

NREC has progressed in the development of its landmark project, Reem Mall. Located in Reem Island in Abu Dhabi, Reem Mall is a major new retail, leisure, dining and entertainment destination that comprises 450 stores and has a confirmed tenant-mix of leading retailers in the region and world.

In Egypt, the company’s mega-residential project, Grand Heights, reached advanced phased of development and delivery of residential units. The project covers a total of 4 million sq m and caters to the housing needs of a growing population in Cairo and its suburban areas.

Sultan said: "Reem Mall and Grand Heights are significant investments that will support NREC in growing and diversifying its sources of operating cash flow in the coming years."

In Kuwait, NREC manages the waterfront destination, Souq Sharq, and the El Joan resort.

In Jordan, the company owns and operates the South Aqaba Investment Park, a 1.5 million sq m property dedicated for warehousing, factories, companies and logistics in an attractive investment climate that provides access to major international markets and Free Trade Agreements, said the top official.

In Libya, NREC’s Palm Residences is a residential project offering high-end facilities and security on the Mediterranean coastline in Janzour, a suburb of Tripoli.

In Iraq, the Kuwaiti developer operates an existing property and is seeking new investment opportunities in close to the busiest ring road in Erbil, he added.-TradeArabia News Service


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