News Update

 

NREC Announces a Net Profit of KD 3.4 million for Q3/2020 and a Net Profit of KD 2.9 million for the 9-months Period Ended 30 September 2020

National Real Estate Company (NREC), currently developing projects valued at over USD 2 billion in the Middle East and North Africa region, reported its financial and operational results for the periods ended 30 September 2020. The Company announced a net profit of KD 3.4 million and an EPS of 2.41 fils for the third quarter of 2020, and a net profit of KD 2.9 million and an EPS of 2.09 fils for the nine-months period ended September 30, 2020.

The Company’s operating revenue stood at KD 10.1 million, and EBITDA was KD 9.3 million, in 9M 2020. Total assets reached KD 487 million by September 30, 2020.

NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, said: “The Company’s operating environment had shown signs of recovery from the impact of the Covid-19 pandemic during the third quarter of 2020. The governments of various countries where NREC operates had relaxed the precautionary measures previously taken to contain the virus. This overall economic rebound, along with the Executive Management’s strategies and risk measures already in place, had been positively reflected on the Company’s financial results for the third quarter of 2020.”

“The Company remains focused on its strategy of Debt Reduction to below KD 100 million in addition to an overall reduction of total company’s 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.”

Sultan said: “Work at Reem Mall is steadily progressing, to ensure opening within set timelines, and in accordance with the best precautionary measures and procedures. A transformational aggregated application has been introduced in the mall, to significantly support the goal of making Reem Mall the world’s first life and business center featuring an omnichannel ecosystem. Capabilities of this first-of-its-kind app will extend to a robust digital infrastructure that will bring the entire mall ecosystem together on a unique platform to revolutionize the experience for retailers and consumers”.

Located on 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. The project covers a total of four million square meters and caters to the housing needs of a growing population in Cairo and its suburban areas.

Sultan said: “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 the El Joan resort. In Jordan, the Company operates the South Aqaba Investment Park, a 1.5 million square meter property dedicated to