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Kuwait's Al Mazaya Holding notes 42% decline in 2018 net profits

Sales revenue down to a fifth of 2017 values, but progress made on Mazaya Residence (Oman) and Mazaya Downtown (Kuwait)

Mazaya Residences is an ongoing development in Oman.
Mazaya Residences is an ongoing development in Oman.

Kuwait-headquartered real estate developer Al Mazaya Holding reported a 42% decline in its full-year net profits, valued at $19.2m (KWD5.8m) in 2018 against corresponding 2017 figures of $27.5m (KWD8.3m). 

In a missive to the Dubai bourse, where it is listed, the developer behind projects such as Oman’s Mazaya Residences said its 2018 revenues dropped to $72.7m (KWD22.1m) from $225.7m (KWD68.6m) in 2017.

Earnings per share (EPS) attributed to shareholders were noted at $26.9 (KWD8.17), down from 2017's EPS of $38.2 (KWD11.6).

According to its financial statements for 2018, Al Mazaya Holding’s rental revenue increased by 9.4% in 2018, reaching $27.6m (KWD8.4m) during the year and a minor hike over 2017's rental revenue of $25m (KWD7.6m).

In an Arabic-language statement released on the company’s website, Ibrahim Abdulrahman Al Saqabi, chief executive officer of Al Mazaya Holding, said sales revenues were affected by a decline in the regional markets that the developer operates in.

Al Mazaya Holding's sales revenues, which came from 200 properties held for trading, were recorded at $44.7m (KWD13.6m) in 2018 – almost a fifth of the $200m (KWD60.8m) sales revenues posted in the previous year.

Among the Al Mazaya Holding projects that progressed in 2018 is the Mazaya Downtown scheme in Al Sharq, Kuwait, on which Pace has worked with the development company.

Drilling works are due to commence for the Sharq project, Al Mazaya Holding's Arabic-language statement said.

The UAE remained Al Mazaya Holding’s key market in 2018, generating revenues of $29.6m (KWD9m). The developer also noted sales at its home project in Liwan, Dubai. 

During the year, Al Mazaya Holding, which is also listed on Boursa Kuwait, was actively involved with Oman's real estate market, where it completed Phase 1 of Mazaya Residence Al-Mawalehm, for which an owners' association was established and registered during the year. 

The Kuwaiti developer also signed contracts for its third healthcare project during the year. Mazaya Clinic (3) is a 25-storey building spanning 4,000m2 in Benid Al-Qar, a key healthcare neighbourhood in Kuwait. 

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Construction Week - Issue 743
Jun 01, 2019