National Real Estate Company (NREC), currently developing various mega projects in the Middle East and North Africa region, reported its financial and operational results for the year ended 31 December 2020. The Company announced a net profit attributable to the owners of the parent Company of KD 44
National Real Estate Company (NREC), currently developing various mega projects in the Middle East and North Africa region, reported its financial and operational results for the year ended 31 December 2020. The Company announced a net profit attributable to the owners of the parent Company of KD 443 thousand and an EPS of 0.31 fils in 2020, compared to a net profit of KD 11.4 million and an EPS of 7.99 fils in 2019. The Company’s operating revenue stood at KD 16.9 million in 2020 and its total assets reached KD 491 million by December 31, 2020.
For Q4 2020, the Company reported a net loss of KD 2.6 million, or a loss per shareof 1.78 fils, and operating revenue of KD 6.9 million.
The Company’s Board of Directors has recommended the distribution of 5% bonus shares (5 shares for every 100 shares) for the year.This recommendation is subject to the approval of the General Assembly.
NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, said:“2020 was a challenging year that tested the resilience of businesses and communities everywhere, due to the COVID-19 crisis. NREC’s implemented strategies and risk measures have though helped the Company to navigate the resulting economic and social challenges”.
“Proactive steps have been taken to safeguard the Company’s financial health, to adjust the cost structure, to maintain employment, and to secure sustainable operations. Support has been extended to both Government and society to overcome the repercussions of the COVID-19 emerging health and economic crisis”.
Sultan added:“NREC remains focused on its strategy of debt reduction to below KD 100 million, in addition to an overall reduction of the company’s total liabilities and expenses, which will strengthen NREC’s cash position. We remain focused on enhancing the performance of our operating properties and the development of our landmark projects Reem Mall in Abu Dhabi and Grand Heights in Egypt".
“In 2020, Management restructured a major portion of the Company’s debt with a local bank. The goal was to reduce liquidity risk and to support sustainable operations, given the overall impact of the current health and economic crisis. This resulted in extending the debt maturity and re-classifying the long-term portion of the facilities from current to non-current liabilities”.
“Construction and pre-leasing at Reem Mall are progressing well, with a target project completion towards the end of 2021. Construction progress is currently nearing 90%. An interior fit-out contractor (JC Maclean International) has recently been appointed. Attractions such as the Snow Park are taking shape. With a national vaccination program well underway in the UAE, the economy started rebounding gradually, and we are optimistic about the successful transition of Reem Mall from a construction project to an operating asset”.
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.
In Egypt, the Company’s mega-residential project, Grand Heights, reached an advanced phase of development and delivery of residential units. Grand Heights is part of a larger plot owned by NREC’s subsidiary KUWADICO, and in which three sub-developers are developing various portions. The project covers a total of 3.8 million square meters and caters to the housing needs of a growing population in Cairo and its suburban areas.
Sultan stated: “Total sold units across the entire project in Egypt stood at 4,790 and the remaining unsold units stand at 6,008. During 2020, KUWADICO also launched its custom digital community management application catering to the hundreds of residents who have moved into their new homes. KUWADICO distributed dividends during 2020, for the first time.”
“Reem Mall and Grand Heights are significant investments that will support NREC in growing and diversifying its sources of operating cash flow in the coming years.”
In Kuwait, NREC manages the waterfront destination, Souq Sharq, and El Joan resorts. “Support has been provided to businesses in Souq Sharq, through a rent-free initiative that has been extended to tenants”, said Sultan. “El-Joan resorts were offered to the Ministry of Health, to use as a health quarry, from March 4, 2020 to July 10, 2020.”
In Aqaba - Jordan, NREC’s subsidiary 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 that provides access to major international markets and Free Trade Agreements. “Warehouses’ occupancy rate stood at 87% at the end of December 2020, and the Company continues to distribute dividends consistently”, said Sultan.
In Libya, Palm City Residences is the first fully operational project to be developed by the NREC’s joint venture in Libya, Mediterranean Investments Holding p.l.c. (MIH). This residential project is offering high-end facilities and security on the Mediterranean coastline in Janzour, a suburb of Tripoli. “MIH distributed dividends during 2020, also for the first time, and Palm City Residences occupancy was 55.72% at the end of December 2020”, revealed Sultan.
Established in 1973 and listed in Boursa Kuwait, National Real Estate Company (NREC) is a real estate investment, development and property manager based in the Middle East and North Africa. 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 22.34% share in Agility Public Warehousing Company K.S.C.P., which is one of the leading logistics companies in the world.