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- Finance income grew 7.7% vs. previous quarter, and 64% vs. Q3 ‘23, to AED 2.4 million
- Real Estate rental revenues up 8% quarter-on-quarter
- Goldilocks Fund net investment value of AED 1.044 billion in Q3 ‘24 vs. AED 1.038 billion in Q2 ‘24
- Good progress on recently announced investment strategy, shifting focus to Private Equity complemented by income generating assets
- Eshraq maintains efforts to redeem its holdings in the Goldilocks Fund, with a view to directly managing these investments in the near future
Abu Dhabi, UAE: Eshraq Investments PJSC ("Eshraq" or "Company"), listed on the Abu Dhabi Securities Exchange ("ADX"), has announced its financial results for the three- and nine-month periods ended 30 September 2024. Eshraq delivered a strong third quarter, with healthy growth in profitability versus the previous quarter and marking a significant improvement versus the prior year, when the Company reported a net loss. Eshraq is also making positive strides in the execution of its refreshed strategy to maximise shareholder value and spur future growth.
Eshraq’s financial performance improved materially as compared to the previous quarter, driven by growth in the value of the Goldilocks Fund. Finance income was up 64% compared to Q3 ‘23, with finance costs decreasing 30.9%. Compared to the previous quarter, finance income grew by 7.7%. Eshraq reported profit for the period of AED 6.7 million in Q3 ‘24, a significant improvement on the AED 83.3 million net loss reported for Q3 ’23 and a 91% improvement versus the prior quarter. Total liabilities have reduced 11.4% since year-end 2023 to AED 145.2 million, as the Company continued to deleverage its balance sheet.
Over the course of 2024, strategic exits from holdings within the Goldilocks Fund have significantly strengthened the Group’s balance sheet, with Goldilocks reducing its liabilities by AED 403 million during the nine-month period. Eshraq is resolutely working towards an agreement with SHUAA Capital with respect to the redemption of assets held within the Goldilocks Fund, with the objective of giving Eshraq full control of its holdings as well as on investment decision-making. The Company maintains its efforts to satisfactorily conclude discussions as soon as possible.
The Company’s commercial Real Estate operations generated revenue of AED 4.0 million in Q3 ‘24, down 42% year-on-year due to a decline in rental income following the profitable sale of Real Estate assets in Dubai in 2023. Gross profit from commercial Real Estate operations stood at AED 2.8 million, down by 5% versus Q2 ‘24, and down 28% year-on-year. Eshraq’s residential assets in Marina Rise Abu Dhabi continued to register strong occupancy rates in Q3 ‘24, with average occupancy of c.97%.
Fahad Abdul Qader Al Qassim, Chairman of Eshraq, said: “We are making good headway on the execution of our refreshed long-term strategy, with the core business to focus on directly held Private Equity stakes in high-growth GCC companies. Eshraq has committed to building Private Equity capabilities and exposure, while transitioning legacy portfolio assets. Under the refreshed strategy, we intend to maintain a greater degree of control over our investments through direct holdings, complemented by cash generation from minority equity positions, fixed income assets and the sale or development of our Real Estate assets to balance the portfolio and support consistency in earnings.”
The Company has progressed on sourcing and evaluating potential acquisitions during Q2 and Q3, having identified a numberof opportunities. Although still in the screening phase, Eshraq is actively evaluating assets in a number of attractive and strategic sectors, on which it expects to make further announcements to the market in due course, should these materialize.
Mohamed Al Hashimi, Chief Executive Officer of Eshraq, commented: “As we continue to rationalize our portfolio, we are making solid progress in executing our strategy to create long-term and competitive shareholder value. On a year-to-date basis, our financial and operational performance is a direct reflection of our portfolio optimization efforts, as well as those to significantly deleverage our balance sheet. We are very encouraged by the progress we have achieved since announcing our refreshed strategy and are close to delivering some material wins in both our Investment and Real Estate portfolios. On this front, we expect to make some important announcements during the coming months, as we press ahead on critical initiatives that will accelerate our return to profitable growth.”