Abu Dhabi-based Reem Investments, a real estate and financial services provider, posted profits of Dh238.7 million ($64.98) for the financial year 2010 at its recent annual general meeting.

The profits represent a return on equity of 5 per cent and an EPS (earnings per share) of Dh1.53, a company statement said.

“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 Sheikh Tahnoon Bin Zayed Al Nahyan, the firm’s chairman.

“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.”

“Last but not least, we adopted measures to control costs and followed a prudent investment strategy.  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,” he added.

In April 2010, the company successfully completed the infrastructure works in Rawdhat, one of the two mega projects being undertaken in the UAE capital by its real estate arm, Reem Developers, said Abdulhamid M Saeed, managing director of Reem.

By the end of 2010, Reem had completed 90 per cent of Phase 1 infrastructure works at Najmat and had also commenced Phase 2 infrastructure works, which included the beaches at the Reem Island project, he added.

The investment team contributed Dh49.6 million to the group income through the sale and realisation of its investments during 2010, he said.

In 2011, Saeed said the team will examine and exploit new areas such as healthcare, education, and logistics among others in order to diversify its income streams.

At a separate extraordinary general meeting, shareholders accepted the company’s proposal for a capital reduction of 50 per cent.

The capital reduction will be achieved by returning the surplus capital from the cash reserves accumulated over the years, according to the statement. – TradeArabia News Service