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NREC Shareholders Approve 10% Stock Dividends, Elects Board

16 - April - 2019

  • Company announced 22% increase in EBITDA for 2018
  • Reduced debt by KD 49.7 million, the equivalent of 28%
  • Reduced Net Debt to Equity ratio to 0.5
  • Progressed in landmark developments in Abu Dhabi and Egypt

Kuwait, April 16, 2019: National Real Estate Company (NREC) today held its annual general meeting of shareholders for the financial year ended December 31, 2018, which approved the Board recommendation to distribute 10% in stock dividends and elected a new Board for the next three years.

Highlighting the Company’s operational and financial milestones for the year, NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, said: “NREC has reduced its debt by KD 49.7 million as part of its strategy to strengthen its balance sheet in order to pursue new opportunities in the region and diversify sources of operating cash flow in the next years. The Company also progressed in the development of its landmark projects in Abu Dhabi and Grand Heights which will provide significant returns to our Company once completed.”

NREC announced for the year 2018 an EBITDA of KD 25 million, up 22% from the previous year, while net profit stood at KD 10.8 million. The total assets reached KD 478 million by year-end and shareholder’s equity attributable to the Parent Company stood increased to KD 258 million.

Sultan said: “The Company’s net debt to equity decreased from 0.8 to 0.5, while our shareholder’s equity increased as part of our commitment at the Company to preserve our shareholders’ rights as proven by our track record in over 40 years. The real estate industry is today a challenging one and we believe at NREC that we have taken the right conservative steps to maintain a healthy position.”

Developing projects

NREC is currently developing two new projects. The first, Reem Mall in Abu Dhabi 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. The second is Grand Heights in Egypt, a residential development that covers 1.5 million square meters and caters to the housing needs of a growing population in Cairo and its suburban areas.

Earnings in 2018

 

- EBITDA: KD 25 million, up 22%
- Net profit: KD 10.8 million
- Shareholder’s equity: KD 258 million, up from KD 227 million
- Net debt to equity ratio: 0.5, down from 0.8
- Debt reduction by 28%

About NREC

Established in 1973 and listed on Boursa Kuwait, National Real Estate Company (NREC) is a real estate investment, development and property manager based in the Middle East and North Africa, developing assets exceeding USD 2 billion. 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 22.3% share in Agility Public Warehousing Company K.S.C.P. which is one of the top ten logistics companies in the world.

Note:

 Comparative figures were restated following the implementation of the new IFRS accounting standards.