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First Dubai Announces Net Profits of KWD 2.10 million in only nine months

Earnings per share of 2.10 fils logged in past nine months against 1.20 fils last year

  First Dubai Real Estate Company has announced net profits of KWD 2.10 million during the first three-quarters months of the year 2016 from KWD 1.20 million last year, a rise of 74.54%.

Announcing the financial results for the year, the Kuwaiti shareholding company said earnings per share of 2.10 fils were logged during the past nine months against 1.20 fils during the same period in 2015.

Following the company’s board meeting on Sunday, October 30th, Mr Shlash Al-Hajraf, Board Chairman and Managing Director of Capital Markets Authority in Kuwait, said, “During the first nine months of the year, First Dubai achieved incredibly positive financial results by virtue of its focus on selling housing units that are still under construction to investors and simultaneously renting the projects that have already been completed.”

Commenting on the company’s operating activities, Mr Al Hajraf said, “First Dubai has continued to post high-occupancy rates in its income-generating projects, including Sky Gardens at Dubai International Financial Centre where occupancy rate reached 96%. In addition, projects in Saudi Arabia have nearly reached full capacity. While Al Maathar Towers’ occupancy rate has reached 85% and Al Olaya Tower’s achieved 70% occupancy. Projects like Queue Point in Dubai Land also recorded effective sales.”

Mr Al Hajraf declared that during the first three-quarters of the year, the company showed progress in terms of operating performance and net profits as part of its long-term strategy, which aimed at garnering high returns with the lowest risk possible. He added that the company’s operating revenues jumped to KWD 9.20 million, a 54.9% rise when compared with 2015’s KWD 5.94 million.

Elaborating on the details of the operating revenues, the board chairman added, “Sales revenues rose from KWD 4.22 million by the end of the 3rd quarter of last year to KWD 6.87 million by the end of the 3rd quarter of 2016 achieving an increase of 62.88%. During the same period, the net profit for rental revenues was KWD 2.29 million, a 32.64% increase over KWD 1.72 million during the same period in 2015.

By the end of the third quarter 2016, the company’s total asset increased by 60.9% with total value of KWD 95.26 million. This has been achieved partly as a result of a financial settlement struck with Al Mazaya Holding, the parent company. Following this settlement, the company’s long-term assets increased to KWD 76.81 million, solidifying the quality of its real estate assets. Further indicative of recent growth, the owners equity grew steadily to reach KWD 70.24 million by the end of the 3rd quarter this year against KWD 67.45 million during the same period in 2015.

The company managed to reduce its short and long-term financial commitments, lowering costs from KWD 32.17 million by the end of the third quarter 2015 to KWD 25.02 million during the same period in 2016. Due to the continues delivery of all of its housing units and receiving the clients’ payments, the company reduced its short-term commitments from KWD 11.24 million by the end of the third quarter 2015 to KWD 6.40 million during the same period in 2016.

First Nine-Month Achievements:

Mr Al Hajraf highlighted the achievements of the first nine months of the current year as follows:

-     Settlement with the parent company resulting in an increase in the company’s real estate investments and assets and growth of its geographic share. Thus, reducing risk factors and expanding the geographical distribution of the company’s projects.

-     Strengthening the rental revenues of its current projects by renewing rentals at a higher lease rate proportionate to current market prices and corresponding with the real estate services offered by the company. This reflected positively on the company’s operating revenues generated from its property leases.

Mr Hajraf concluded, “First Dubai is now conducting a new action plan for the coming five years aimed at ensuring more expansion and successes in the best interest of the company and its shareholders.”

Based on the current trends of the company, these new action plans are likely to come to fruition.