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NREC holds its 45th Annual General Meeting

05 - June - 2016

The National Real Estate Company (NREC), one of the leading real estate companies in the Middle East and North Africa (MENA), held its 45th Annual General Meeting of Shareholders (AGM) in Kuwait at the company’s Souq Sharq Waterfront project.

Shareholders approved the Board of Directors’ Report on the company's activities and financial position for the Financial Year ending December 31, 2015, the Auditors’ Report for 2015, as well as the issuance of 5% bonus shares at a nominal value of 100 fils per share.

FY2015 financial highlights:
● Operating Revenue: KD28.5 million, up 46.6% from 2014
● Gross Profit: KD8.8 million, up 42.0% from 2014
● EBITDA: KD22.1 million, up 41.8% from 2014
● Net Profit to shareholders: KD15.4 million, up 47.2% from 2014
● Earnings Per Share (EPS) of 17.21 fils
● Total Assets of KD580 million; increased by KD27 million from December 2014
● Net debt to equity ratio: 0.7
● Shareholders’ Equity of KD217 million; increased by KD17 million from December 2014

NREC CEO, Samuel Sidiqi, said: “I am pleased to report that our overall operational performance in 2015 marked a five-year high and our outlook is positive despite the regional economic climate. We look forward to growth being driven by strong recurring rental cash flows from key development projects across the region and unit sales at Grand Heights to enhance shareholders’ returns in the coming years.

Our Grand Heights project in Egypt generated strong sales in 2015 and as the first tenants have taken handover of their units, the project’s profile has been raised and will allow us to increase prices periodically. Meanwhile, progress on Reem Mall continues to exceed expectations as enabling works commenced in Q4 2015 and leasing negotiations for over 70% of the area are currently underway. We also acquired the developer license from the Abu Dhabi Department of Municipal Affairs after the new Real Estate Law came into effect this year. Reem Mall is scheduled to open in 2018 as a super-regional mall with over 260,000 square meters of gross floor area, setting new standards in retail real estate development.”

Sidiqi added, “Our outlook for 2016 is positive despite the regional economic climate. Egypt, Kuwait, and Jordan will continue to provide strong cash flow for the company through rental income streams and unit sales at Grand Heights. Development activities at Grand Heights and Reem Mall will progress substantially as management focuses on project delivery.”

Q1 2016 Financial Highlights
On May 14, the company announced that its first quarter net profit was up 9.8%, while operating revenues were up 73.1%

● Q1 Operating Revenue: KD7.3 million, up 73.1% from Q1 2015
● Q1 EBITDA: KD4.5 million, up 1.9% from Q1 2015
● Q1 Net Profit to shareholders: KD3.6 million, up 9.8% from Q1 2015
● Q1 Earnings Per Share (EPS) of 4.05 fils