• Operating Revenue: KD 3.7 million
  • EBITDA: KD 10.7 million
  • Total Assets: KD 551 million

Kuwait: National Real Estate Company (NREC) reported its financial and operational results for the periods ended September 30, 2024. The Company announced a net profit of KD 3.7 million and earnings per share (EPS) of 1.94 fils for 9M 2024, compared to a net loss of KD 1.5 million and a loss per share of 0.79 fils for the same period in 2023.

The Company's operating revenue for the first nine months of 2024 reached KD 3.7 million, reflecting a 62% decline compared to the same period in 2023. Total assets stood at KD 551 million, as of September 30, 2024.

For Q3 2024, the Company reported a net profit of KD 2.0 million, a profit per share of 1.07 fils, and operating revenue of KD 1.1 million.

Commenting on the Company’s results, NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, said: “The profitability achieved in Q3 2024, along with year-to-date profits growth compared to last year, underscores our ongoing commitment to maximizing value for shareholders, even amid a challenging geopolitical and economic environment.”

Sultan added: “This performance reflects our continued focus on delivering sustainable financial results, and highlights the effectiveness of the Company’s operational strategies and the resilience of our robust risk management measures in adapting to a dynamic market environment.”

Company Project Updates

Reem Mall – Abu Dhabi: 183 Actively Trading Units and Promising Growth Prospects

Sultan stated: "As of the end of Q3 2024, we had 183 actively trading units in Reem Mall, reflecting a year-to-date increase of 45 units. This is a positive indicator of the mall's growing appeal and operational success. This upward trend highlights strong demand and a healthy retail environment, demonstrating that Reem Mall continues to attract new businesses and foster a thriving commercial atmosphere. The ongoing growth reflects confidence in the mall’s strategic location and its potential for continued progress."

“We remain confident in the promising future of Reem Mall, particularly given Abu Dhabi’s strong economy, ongoing infrastructure development, and rising consumer demand. With Reem Island’s inclusion in the Abu Dhabi Global Market (ADGM) as a free zone, the mall is well-positioned for continued growth, benefiting from a business-friendly environment and streamlined regulations”, added Sultan.

NREC is a co-investor in Abu Dhabi’s $1.3 billion Reem Mall on Reem Island. The mall spans an area of 186,000 sqm GLA, making it one of the largest malls in the region. With more than 400 stores, including 80 F&B concepts, and 6,400 parking spaces, it caters to visitors from all over the UAE and beyond.

With digital innovations like an aggregated mobile app for hands-free shopping, in-mall navigation, and smart parking, Reem Mall is leading the way in integrated online and in-person shopping.

Grand Heights Residential Development in Egypt: 82% of Units Sold to Date

The Company's residential project in Egypt, Grand Heights forms part of a more extensive parcel of land owned by NREC's subsidiary KUWADICO and is presently being developed in different sections by three sub-developers. Covering an area of 3.8 million square meters, the project addresses the surging housing needs of the growing population in Cairo and its suburbs.

Sultan said: “The percentage of units sold across the whole project as of the end of Q3 2024 was 82%.”

“Total sold units across the entire project in Egypt stood at 7,359 and the remaining unsold units stood at 1,617 by quarter-end.”

South Aqaba Investment Park – Jordan: Strong Occupancy and Stable Rental Revenues Despite Geopolitical Tensions in the Region

Sultan said: “Jordan's South Aqaba Investment Park maintained a solid occupancy rate of 98% for warehouses and full occupancy for industrial buildings.”

“Year-to-date rental revenues totaled KD 728 thousand, showing a slight 1% decline compared to the same period last year, highlighting a stable operational performance, despite ongoing geopolitical tensions in the region,” added Sultan.

Strategic Asset Divestment, Restructuring, and Active Evaluation of Investment Opportunities for Shareholder Value Optimization

"We are committed to our strategy of selectively divesting assets to maximize shareholder value," said Sultan.

"As part of this value-maximization strategy, management is actively evaluating several investment opportunities and restructuring options to further strengthen our portfolio and enhance returns for our shareholders."

Established in 1973 and listed in Boursa Kuwait, National Real Estate Company (NREC) is a real estate investment, development and property manager based in the Middle East and North Africa. The Company’s portfolio comprises a mix of retail, commercial and residential properties in the region.