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NREC announces 2015 financial results

30 - March - 2016

National Real Estate Company (NREC), a leading regional developer, today announced the company’s financial results for the year 2015 and reaffirmed a growth outlook for 2016. The company recorded KD15.4 million in net profit for the year, up 47.2% from 2014.

NREC CEO Mr. Samuel Sidiqi said, “We are pleased to report to our shareholders that the company recorded its highest profitability in five years and progress across geographies. In Kuwait, our commercial and retail portfolio continued to be a strong source of recurring revenue with rental income growing 4.6% in 2015 to KD10.4 million. In the UAE, where we are developing Reem Mall, we received the final detailed planning approval from the Urban Planning Council, started enabling works on the site, and commenced the selection process for the main contractor. In Egypt, our 3.8 million square meter Grand Heights project generated KD11.0 million in sales in 2015 and the handover of Phase 1 units commenced in March 2016. The project is scheduled for completion between 2020 and 2021.”

FY2015 Financial Highlights:
● Operating Revenue: KD28.5 million, up 46.6% from 2014
● Gross Profit: KD8.8 million, up 42.0%
● EBITDA: KD22.1 million, up 41.8% from 2014
● Net Profit to shareholders: KD15.4 million, up 47.2%
● Earnings Per Share (EPS) of 17.21 fils

Balance Sheet Highlights:
● Total Assets of KD579.9 million; increased by KD26.9 million from December 2014
● Net debt to equity ratio: 0.7
● Shareholders’ Equity of KD216.8 million; increased by KD16.9 million from December 2014

Sidiqi added, “Our outlook for 2016 is positive. We forecast that our core business will continue to provide a strong cash flow for the company through our operations in Kuwait and Jordan. We expect our top line to grow, driven by continued strong sales in Egypt. Reem Mall progress will continue to exceed expectations.”