Net profits skyrocket at Abu Dhabi's Eshraq
The chairman of the Abu Dhabi-based real estate firm said its 2018 first half results were the best in four years
Eshraq Properties has reported a net profit of $4m (AED14.8m) in H1 2018, a significant turnaround compared to first half of last year when the Abu Dhabi-based real estate firm reported a loss.
According to its latest financials, its H1 2018 net profit figure represented a 4,725% increase on H1 2017 when the group experienced a net profit loss of $87,121 (AED320,000).
The group’s second quarter results mirrored these figures, with year-on-year net profits between April and June rising to $1.9m (AED7m) – a 994% increase on the same three months last year.
Eshraq said performance in its hospitality and leasing portfolios were key in achieving the group's "stellar" results.
When asked by construction week what drove the group's performance, Jassim Alseddiqi, its chairman, told Construction Week: "Efficient utilization and deployment of surplus cash has allowed for higher earnings compared to bank deposits. We have also diversified of our investment portfolio. For example, we have also invested in financial assets which is income generating."
For the first half of 2018, Nuran Marina hotel apartments also achieved an occupancy rate of 91.3%. On the leasing front, Eshraq has achieved an occupancy ratio of 96.5% across its leasing portfolio.
"The results are the best half-yearly results for the company since the first half of 2014 and a further confirmation of the successful turnaround story that Eshraq has embarked on under the new leadership," the firm added in a statement.
"Our vision for Eshraq is to be a prominent real estate developer in the UAE and the region. We are keen to deliver real and substantial returns to our shareholders".
Alseddiqi told Construction Week: "Currently, our project pipeline is made up of three major developments with a combined value of $326.7m (AED1.2bn)"
"Marina Rise in Reem Island is under construction and due to be completed by Q2 2020 and we are tendering the contracting work for the Jumeirah Rise project in Dubai’s Jumeirah Village Circle. We are also close to finalising a design consultant for our flagship Gateway project in Abu Dhabi."