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NREC records KD 11.9 million net profit for nine months of 2014

24 - November - 2014

NREC’s financial results for nine months of 2014

NREC (NRE) announced its nine months consolidated financial results for the period ending 30th September 2014.  Net Profit reached KD 11.9 M and Earning per Share (EPS) 13.98 fils; an increase of 26.3% compared to 2013. Consolidated Group Total Gross Revenue stands at KD 28.2 million and EBITDA is KD 15.6 million.

“2013 was a very good year for NREC, and I am happy to show that we are continuing to improve on that in 2014. We are seeing sustainable growth in our rental portfolio as well as increased revenue from our sales focused developments, it is a good balanced result,” said NREC’s CEO, Sam Sidiqi.

Update on Developments and Investments

In Abu Dhabi, NREC has announced the participation of RTKL as lead architect for The Reem Mall and has announced that M squared is leading the leasing efforts. NREC signed a preliminary agreement with Al Arfaj Real Estate Company, one of the subsidiaries of United Projects for Aviation Services Company KSCP (“UPAC”) for the development of the mall and the amount of UPAC’s investment in the Project may reach USD 225 million.

In Egypt NREC is achieving strong sales with more than EGP 1bn of sales in the nine months of 2014. The Egyptian consumers are very impressed with the “day one community” that NREC is offering in its Grand Heights development in 6th of October City near Cairo.

NREC’s investment in Libya faces headwinds due to geopolitical challenges and our property is under threat of renters leaving the country due to security reasons. However, the company has not experienced a significant adverse impact on profitability up to this point.

In Aqaba, NREC received its first cash dividend from its subsidiary ANREPCO, and sees continued good operating performance with options to expand.

Overview of financial performance for nine months of 2014 vs. 2013

  • Net profit attributable to shareholders up 26.3% to KD 11.9 million
  • EPS improved from 11.07 fils to 13.98 fils
  • Group total gross revenue up by 46.5% to KD 28.2 million
  • EBITDA increased by 15.4% to reach KD 15.6 million
  • Total assets increased by KD 20.5 million to KD 542.6 million
  • Bank debt at KD 177.4 million
  • Shareholders’ equity increased by KD 14.1 million to KD 190.7 million
  • Outlook for the full year 2014

“NREC’s nine months results show good improvements over last year. Our view is that NREC should continue to perform better during the remainder of 2014 in comparison with 2013.

We continue to focus our efforts to increase cash flows from existing rental properties, to manage risk across our portfolio and to drive our developments systematically to deliver good return on investment for our shareholders,” said Mr. Sidiqi.