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NREC announces Q3 2017 earnings

14 - November - 2017

Kuwait, November 14, 2017 – National Real Estate Company (NREC), a leading regional developer with USD2 billion in projects under development in the UAE, Egypt and other markets, today released its financial results for the third quarter of 2017. The company recorded a growth of 120% in its top-line earnings for the quarter, bringing its year-to-date revenue to KD21.9 million, reflecting a growth of 6.9% from the same period last year. The company’s net profit for the quarter was KD5.1 million, up 45.7% from last year, bringing the company’s year-to-date net profit to KD12.6, a 13.3% increase from the same period last year.


Q3 2017 Financial Highlights (YoY)
• Operating Revenue: KD12.3 million, up 120.0%
• EBITDA: KD6.9million, up 70.3%
• Net Profit to shareholders: KD5.1 million, up 45.7%
• Earnings Per Share (EPS) of 5.45 fils

9 Months (YTD) 2017 Financial Highlights (YoY)
• Operating Revenue: KD21.9 million, up 6.9%
• EBITDA: KD15.3 million, up 13.8%
• Net Profit to shareholders: KD12.6 million, up 13.3%
• Earnings Per Share (EPS) of 13.42 fils

Commenting on the results and outlook, Mr. Samuel Sidiqi, CEO of NREC said: “I am delighted with both our financial and business performance during the third quarter and particularly with operating revenues of KD12.3 million and EBITDA of KD6.9 million. This represents a top line year on year growth of 120% and EBITDA margin of 40.3%. This growth is mainly on account of operations in Egypt and Lebanon where we started the recognition of revenue from previously sold units. For the nine months year-to-date, our performance has resulted in operating revenues KD21.9 million and net profit increasing by 13.3% to KD12.6 million.

Our Kuwait rental portfolio reported revenues year-to-date of KD8.1 million, which is an increase of 1.6% for the same period last year. We have continued to be successful in securing renewals with several of our key tenants, which is a clear reflection of the attractiveness of our portfolio. Furthermore, our investment in Lebanon generated strong sales during the quarter bringing year-to-date sales to KD2.7 million.

At the Grand Heights in Egypt, we continue to see strong interest from new potential buyers and have also been successful in converting existing enquiries into sales. We have now sold 901 residential units since start of the development, which represents a cumulative sales value of EGP 3.0 billion. Of the total units sold, 234 units have been delivered as of September 30, 2017.

In Abu Dhabi, Reem Mall’s leasing progression remains above set targets having executed agreements with Landmark, Dubai Holdings, Majid Al Futtaim and others, bringing many of the top international and local brands including: Vox cinemas, Magic Planet, Carrefour, Centrepoint, Max, New Look, and Snow Park Abu Dhabi, whereas final agreements with other major retailers are imminent.

Looking at the fourth quarter, we continue our positive outlook across our core markets this year.”