Abu Dhabi real estate firm Eshraq to cross-list stock in Saudi Arabia
ADX-listed real estate developer posts 11% revenue hike and 91% net profit decline for 2018 as 'legacy issues' are resolved
Abu Dhabi Securities Exchange-listed (ADX) Eshraq Investments will cross-list some of its shares on Saudi Arabia’s Tadawul stock exchange, with Banque Saudi Fransi and Baker McKenzie appointed as advisors for the transaction.
The announcement was made as part of the company’s board meeting that also approved its audited financial results for 2018. Net profits declined by 90.7% at the developer, reducing from $8.8m (AED32.5m) in 2017 to $816,780 (AED3m) in 2018.
Jassim Alseddiqi, chairman of Eshraq Investments, said the firm's financial performance reflected its operational strategy to "resolve all legacy issues".
Marking its second year of profitability, Eshraq also recorded an 11% surge in its 2018 operational revenues to $7.1m (AED26m), up from $6.4m (AED23.4m) in 2017.
Commenting on Eshraq's 2018 figures, Alseddiqi added: “In the last few years, our focus has been to resolve all legacy issues and to return Eshraq to sustainable profits, ensuring efficient utilisation of the excess cash balances.”
The chairman added that Eshraq has been exploring ways to adopt a more flexible model amid a slowdown in real estate activity, with diversification beyond core property investments also being reviewed.
“Our goal is to identify and invest in lucrative opportunities to maximise shareholders’ value,” added Alseddiqi, who was appointed to the role in July 2016.
According to the company’s statement, its hospitality and leasing business maintained occupancy rates of more than 91% in Q4 2018.
Eshraq's under-construction 110m-tall Marina Rise tower in Abu Dhabi has achieved 20% completion and is due to be ready by Q2 2020.