• The Board recommends the distribution of 5% bonus shares
  • Operating Revenue: KD 5.8  million
  • EBITDA: KD 19.7 million
  • Total Assets: KD 574 million

Financial Highlights for the Periods Ended December 31, 2024 (Million KD)

Item

Q4 2024

Q4 2023

Variance (%)

FY 2024

FY 2023

Variance (%)

Operating Revenue

2.1

2.6

-20%

5.8

12.4

-53%

Net Revenue

1.8

1.4

34%

3.9

7.2

-45%

EBITDA / (Negative EBITDA)

8.9

(35.2)

126%

19.7

(24.5)

180%

Net Profit / (Loss)

5.6

(33.7)

117%

9.3

(35.2)

126%

EPS / (Loss per Share) (fils)

2.97

(18.9)

116%

4.91

(19.8)

125%

Kuwait: National Real Estate Company (NREC) reported its financial and operational results for the year ended December 31, 2024. The Company announced a net profit of KD 9.3 million and a profit per share of 4.91 fils in 2024, compared to a net (loss) of KD (35.2) million and a (loss) per share of (19.8) fils in 2023.

The Company’s operating revenue was KD 5.8 million for the year ended December 31, 2024, compared to KD 12.4 million in 2023. Total assets were KD 574 million by December 31, 2024, compared to KD 533 million in 2023.

For Q4 2024, the Company reported a net profit of KD 5.6 million, or a profit per share of 2.97 fils, and operating revenue of KD 2.1 million.

Commenting on the Company’s results, NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, said: “Our FY 2024 results reflect a continued growth trend, driven by strong operational strategies and flexible risk management.”

Sultan added: “Despite external challenges, we have maintained steady progress, reinforcing our commitment to long-term value creation for shareholders.”

Dividend Recommendation

The Company’s Board of Directors has recommended the distribution of 5% bonus shares (5 shares for every 100 shares) for the year 2024. This recommendation is subject to the approval of the General Assembly of Shareholders.

NREC's Strategic Investment in Agility: Enhancing Long-Term Value for Shareholders

Sultan stated: “At NREC, our commitment to creating long-term value for our shareholders extends beyond our core real estate business. We are proud to be the largest shareholder in Agility Public Warehousing Company K.S.C.P., holding a 22.3% stake. Agility is a leader in transforming supply chains to be smarter, faster, greener, and more efficient, delivering exceptional growth and value for its shareholders.”

Sultan added, “NREC is also an investor in Agility Global, directly and through Agility Public Warehousing. Agility is the majority shareholder of Agility Global, holding a 51% stake. Agility Global, an ADX-listed company, manages some of the world’s leading businesses, including Menzies Aviation (the world's largest aviation services company), Tristar (a global fuel logistics provider), and Agility Logistics Parks (one of the largest developers and operators of warehousing and logistics parks in the MEA region).”

He concluded: “Our strategic investment in Agility underscores our belief in the company’s continued growth and innovation, further enhancing NREC’s long-term value creation for our shareholders.”

Company Project Updates

Reem Mall – Abu Dhabi: 197 Actively Trading Units and Promising Outlook Ahead

Sultan stated: "Reem Mall officially opened its doors at the end of May 2024, and we’re pleased to report that 197 units are already actively trading. This reflects strong early engagement and a growing retail presence. With a solid portion of the mall now operational, we are seeing a vibrant and dynamic retail environment taking shape, driven by both established brands and new entrants. This early success highlights the mall's appeal and its ability to meet the demands of an ever-evolving market."

He continued, “Abu Dhabi's continued recognition as the most livable city in the MENA region offers the perfect setting for Reem Mall's growth. The city’s ongoing investments in infrastructure and its focus on creating a vibrant, family-friendly atmosphere provide a strong foundation for the mall’s long-term success. Central to Reem Mall’s vision is its commitment to delivering memorable experiences for families, with a diverse range of entertainment and retail offerings for all ages. With attractions like Snow Abu Dhabi adding to its appeal, we are confident that Reem Mall will become a popular destination for both residents and visitors, meeting the growing demand for family-focused entertainment.”

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: A Sustainable, Gated Community with 83% of Units Sold by End of 2024

Sultan said: "The Grand Heights residential project in Egypt, developed by NREC’s subsidiary KUWADICO, is part of a larger land parcel owned by KUWADICO."

He added: "Grand Heights is a fully integrated, gated community that offers a range of modern amenities and services, creating a sustainable, secure, and vibrant living environment for residents. The community features residential, commercial, and recreational spaces, all designed to enhance the quality of life for its diverse population.”

“The percentage of units sold across the whole project as of the end of the year 2024 was 83%,” Sultan stated. The Grand Heights project is being executed in phases by three sub-developers and covers 3.8 million square meters. It is strategically designed to address the growing housing demand in Cairo and its surrounding suburbs.

South Aqaba Investment Park – Jordan: Strong Occupancy and Stable Rental Revenues amid Regional Geopolitical Tensions

Sultan said: “Jordan's South Aqaba Investment Park continues to maintain a robust 100% occupancy rate for warehouses and full occupancy for industrial buildings by the end of 2024.”

“FY 2024 rental revenues reached KD 983 thousand, reflecting a modest 1% increase compared to last year, underscoring a stable operational performance despite ongoing geopolitical tensions in the region,” added Sultan.

Optimizing Shareholder Value through Strategic Initiatives

“We remain focused on maximizing shareholder value with a primary goal of strategically divesting assets that no longer align with our long-term objectives. At the same time, we are actively evaluating a range of investment opportunities and exploring restructuring options to strengthen our portfolio further and drive enhanced returns for our shareholders”, said Sultan.

Commitment to Sustainability: Driving Positive Impact through ESG Initiatives

Sultan said, "At the group level, we are committed to advancing ESG initiatives that align with the United Nations Sustainable Development Goals (UNSDGs). We focus on creating a lasting positive impact by integrating sustainability into our operations, promoting environmental stewardship, social inclusion, and ethical governance. We aim to contribute meaningfully to the well-being of communities and drive long-term value, fostering resilient, sustainable growth in the regions where we operate."

About NREC

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. ENDS

For more information, please contact:
Mageda Abbas – m.abbas@nrec.com.kw