Kuwait's National Real Estate Co reports $22m net profit in H1 2019
Work on the firm's 4km² Grand Heights, a mega residential project in Egypt, is at an advanced phase of development
Kuwait Bourse-listed National Real Estate Company (NREC) has recorded $22.4m (KWD6.6m) net profit in the first half of 2019, with operating income for the same period being recorded at $28.9m (KWD8.5m).
In a statement, the company said that its total assets in the first six months of 2019 was $1.5bn (KWD465.9m) and total liabilities dropped by 16.2% to $640m (KWD194.9m) from Q2 2019, with loans and borrowings having decreased by 18.5%.
Speaking about the financial results, vice chairman and chief executive officer of NREC, Faisal Jamil Sultan Al-Essa, said that NREC continued to implement strategies to strengthen its cash position by reducing debt level and improving the performance of its operating properties and developing landmark projects.
The company’s earnings before interest, tax, depreciation and amortisation stood at $40.1m (KWD11.8m) as on 30 June, 2019.
Work on the firm's 4km² Grand Heights, a mega residential project in Egypt, has reached an advanced phase of development.
Al-Essa 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 May 2019, NREC was shortlised as one of the six real estate companies that were invited by the Kuwait Municipality and Kuwait Authority for Partnership Projects (Kapp) to submit proposals for an upcoming entertainment, cultural, commercial and sports centre within the Al-Egaila area of Al-Ahmadi Governorate.