Q1 net profit down by 72% at Eshraq Investments in Abu Dhabi
ADX-listed developer says Marina Rise project will complete by Q2 2020 and contribute to next year's bottom line
Abu Dhabi Securities Exchange-listed (ADX) real estate and investment firm Eshraq Investments has seen net profits decline by more than 70% in the first quarter of 2019, with revenue also reducing compared to Q1 2018.
In the three-month period ending 31 March, net profits stood at $571,714 (AED2.1m) for the real estate company, a 72% decline on Q2 2018’s corresponding figure of $2m (AED7.7m).
Operational revenues during Q1 2019 dropped by 7%, hitting $1.9m (AED6.8m) during the opening quarter of this year.
The group, however, noted a 15% year-on-year increase in its net finance income, which it attributed to a “deployment of capital in fixed income investments”.
Eshraq said its hospitality and leasing business maintained its revenue per available room – or RevPAR – during the quarter, noting occupancy rates of more than 90% in Q1 2019.
The group's Marina Rise project in Abu Dhabi is currently 23% complete and is targeted for full completion by Q2 2020.
Marina Rise is a 2B+2P+24+R tower located within Reem Island, and comprises 233 homes across studio (84), one-bedroom (116), two-bedroom (27), and three-bedroom (6) layouts.
Eshraq said the project would be its first development to contribute to bottom line in 2020.
This February, Eshraq announced that construction had hit the 19% mark on the project, with construction work reaching the sixth floor.
Khatib & Alami is involved as Marina Rise’s design and supervision consultant, as well as its architect of record. Al Sweidi & Shams Contracting Co was awarded a $39m (AED144m) deal to work as Marina Rise’s main contractor in August 2017.