Operating revenue reaches KD 4.2 million

Faisal Jamil Sultan Al-Essa

KUWAIT: National Real Estate Company (NREC), which is presently developing properties valued at over $2 billion in the Middle East and North Africa region, yesterday reported its financial and operational earnings for the first quarter of 2019, announcing KD 4.2 million in operating revenue, and KD 6.1 million in EBITDA.

The net profit reached KD 3.6 million for the quarter, while its EPS was 2.93 fils. The total assets stood at KD 468.8 million by quarter-end.

NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, said: "NREC's earnings continue to be driven by our operating properties owned in Kuwait, Jordan, Libya and Iraq, in addition to sale of units in the developing mixed-use project in Egypt, and positive earnings announced from our associate. The Company has also progressed in the development of the landmark project, Reem Mall, in Abu Dhabi. Together with Grand Heights in Egypt, the Company is set to grow and diversify its sources of operating cash flow in the coming years.

"The Company's debt reduction strategy has also continued to move forward through the completion of asset sale. The strategy aims to strengthen our cash position and enable us to focus on our promising landmark projects which are under development and our existing income-generating portfolio."

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. Grand Heights in Egypt is a residential development covering a total of four million square meters and caters to the housing needs of a growing population in Cairo and its suburban areas. 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 square meters property dedicated for warehousing, factories, companies and logistics in an attractive investment climate the provides access to major international markets and Free Trade Agreements. 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 Company operates an existing property and is seeking new investment opportunities in close to largest and busiest ring road in Erbil.

Established in 1973 and listed on Boursa Kuwait, National Real Estate Company (NREC) is a real estate investment, development and property manager based in the Middle East and North Africa, developing assets exceeding $2 billion. The Company's portfolio comprises 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 percent share in Agility Public Warehousing Company K.S.C.P. which is one of the top ten logistics companies in the world.