Honorary Chairman Message

Al Mazaya Holding Company is the result of an idea for investment taken to its logical conclusion. Thinking big, creating high value and earning, as well as growing and maintaining the trust of big-time investors in the Kuwaiti market and abroad, have been the hallmark of Al Mazaya. We provide a wide range of real estate products and services across the spectrum, from purchasing, apportionment and developing of large areas in select zones to offering ready-to-use residential and commercial spaces. 

Al Mazaya Holding Co (K.S.C) a leading property firm in the region.

Rashid Yaqoub Al Nafisi

 

Dear Brothers and Sisters,

Valued Shareholders

My warmest greetings to you all…

I welcome you all to our first meeting in the New Year, asking Almighty Allah to bless us all during the year 2020, which, we hope, will see a paradigm shift in Al Mazaya’s march towards brighter horizons. Across the year, we’ll be consistently seeking to optimize the company's work system performance at the various administrative, operating and financial levels in a way that keeps pace with the rapid and multi-faceted developments taking place all over the world.

Ladies and Gentlemen,

In 2019, Al Mazaya survived myriad challenges and difficulties which resulted from the drastic changes taking place in the real estate markets in which the company has been operating across the years, especially the UAE and Turkey - two countries that have been significantly hit by many geopolitical and economic woes, which have ultimately resulted in a lack of liquidity. The Emirate of Dubai, for example, has gone through major movements and shifts in relation to the supply and demand curves that manifested themselves in an oversupply of real estate units and led to a significant drop in prices. This is coupled with heated and growing competition between real estate developers, which forced property companies to introduce more competitive financing facilities. In Turkey, the currency fluctuation has played a major role in reducing the financial value of the sales and leasing transactions of the company’s projects there. However, thanks to Almighty Allah, we have been fully aware of these challenges since the beginning of the year. Therefore, the resilient efforts made by the members of the Board of Directors and the company's administrative and executive teams, fructified in a dynamic business plan, based on a number of strategic solutions to survive the besetting challenges in a way that enabled us to come up with moral and material successes at the end of that challenging year.

The company’s 2019 Business Plan was founded on three main tenets through which Al Mazaya has sought to develop fundamental solutions to counter liquidity scarcity on the one hand and maintain its financial resilience on the other while continuing to fulfil its financial obligations for banks and all contractors and suppliers as well as prepare the company for a fresh start over the coming years.

The first tenet of the company’s business plan has been to reduce our presence in the real estate markets hit by serious difficulties, by selling our assets, reducing operations and optimizing administrative costs. The second tenet is restructuring the company’s current liabilities for companies and changing these obligations from short to long-term ones.

The third tenet is strengthening the company's operations by terminating projects under development, increasing occupancy rates in projects under leasing and beefing up the company's revenues through managing new projects in the medical sector.

Honourable Shareholders

The prominent commercial brand of Al Mazaya Holding carries great weight in the real estate industry after the company has successfully left a strong imprint through its distinguished projects at the local and international levels over the past sixteen years, during which the company has made resounding successes in a number of Arab countries and Turkey thanks to the credentials it boasts and which qualify the company to access any real estate market worldwide, through an integrated business model and highly qualified administrative teams in addition to an impressive portfolio of distinguished real estate projects.

Ladies and Gentlemen,

In this regard, it’s our sincere pleasure to present you with the annual report of your company for the fiscal year ended on December 31, 2019, in which, as is the case always, we present a quick summary of the key milestones at the operating and financial levels. Al Mazaya Holding - thanks to Almighty Allah – achieved a total operating revenues of about KWD 27.86 million by the end of 2019 compared to KWD 22.06 million at the end of 2018, driven by successful sales and leasing operations which resulted in leasing revenues of KWD 8.73 million by the end of 2019 compared to KWD 8.38 million in 2018. The company secured KWD 7.02 million in leasing profits by the end of 2019 compared to KWD 6.75 million in 2018. Sales revenues increased by nearly 40% to KWD 19.08 million in 2019 from KWD 13.58 million in 2018, which demonstrates the company’s resounding success in addressing the markets affected by the current conditions. However, the increased sales amidst the drop in real estate prices in the aforementioned affected markets triggered total losses of KWD 8.77 million by the end of 2019.

Distinguished Shareholders,

Al Mazaya Company has solid assets of KWD 229.34 million by the end of 2019 compared to KWD 225.62 million in 2018, while total ownership rights dropped to KWD 92.98 million by the end of 2019 from KWD 104.12 million in 2018. In accordance with the Corporate Governance Rules, Al Mazaya Holding Board of Directors acknowledges and guarantees the integrity and authenticity of the company's financial statements along with all the reports submitted to

Shareholders that include the company's financial profile, data and operating results.

Brothers and Sisters

Allow me to review the achievements made by the company during the past year, thanks to an integrated business plan that included three tenets, which enabled us to achieve the aspired financial and operating results. The first tenet is to reduce the company’s presence in the real estate markets affected by the current difficulties. The company was able to sell the majority of the units of the Q-Zone project in the Dubai land, which consists of 328 apartments, after the full completion of the project, in addition to selling 110 apartments in Q-Point and Q-Line. In Istanbul, the company succeeded in selling 50 apartments in the Ritim Istanbul Project. The company also sold 23 apartments at Mazaya Residence in the Sultanate of Oman, thus managing to reduce its economic exposure in the Dubai and Turkey markets.

The second tenet is restructuring and the company's debt. Al Mazaya has succeeded in fulfilling all the company's financial obligations for banks and contractors. We have been determined to achieve the best financial results by reaching convenient agreements with our lenders to schedule current, medium and long-term debt. The third tenet is enhancing the company’s operations by raising occupancy rates in the projects under leasing while completing the projects under development in addition to launching new projects in the medical sector. The company has succeeded in achieving a 100% occupancy rate in its current medical projects, including Clover Medical Centre in Jabriya, the Wara Hospital in Sabah Al-Salem and Mazaya Clinic 3 in Bneid Al-Qar. Up to 98% and 90% occupancy rates have been achieved in Al Mazaya Towers in Kuwait City and the Sky Gardens in the Dubai International Financial Centre, respectively. A 100% occupancy rate was achieved in the Indigo despite the challenges besetting the UAE real estate market; the company also maintained an occupancy rate of 60% in the Ritim Istanbul, in addition to a 100% occupancy rate in the Mazaya Logistics in Bahrain and an average occupancy rate of 70% in its projects in Saudi Arabia.

The company has been able to maximize gains from its projects in the healthcare sector in a manner that ensures the optimal utilization of available and income-generating opportunities, by introducing new projects in the medical sector in 2019, including the “Mazaya Clinic 4” and “Mazaya Clinic 5” projects, both of which are complimentary to the Al Mazaya Clinic Series, which are specialized in this important and vital sector that secures significant returns for the company.

We’ve succeeded in completing Al Mazaya’s underdevelopment projects, creating a solid ground for the company to rise again in the coming year without any financial or logistical obligations towards all the markets in which it operates. Finally, we can safely say that the well-thought-out strategies adopted by Al Mazaya have cemented the financial position of the company and will ensure balanced cash flows during the current year. We will adhere to our precautionary measures and well-calculated steps to survive the rapid geopolitical and economic challenges surrounding the Middle East region, as well as tirelessly continue to work to establish a new stage that meets the growing demands of the coming years.

Dear Shareholders,

In conclusion, I would like to extend my sincere thanks and gratitude to all of you for your support as well as my appreciation to all those who’ve contributed to the company's prestigious status, remarkable achievements and coveted branding. Many thanks to all our Board members, and our colleagues in Al Mazaya Holding!

May God's peace, mercy and blessings be upon you all!


 


Brothers & Sisters

Distinguished Shareholders

Peace, mercy & the blessings of God be upon you all!

Today we present you with an overview of the operational and financial results that we achieved in 2017. It was a successful year during which Al Mazaya Holding continued to grow its operating revenues. Demonstrating the company's resilience and ability to continue to evolve is in line with its ambitious strategy to lead the market domestically and regionally by securing diversified and balanced sources of income.

Al Mazaya Holding has established its leading position in the real estate market through its outstanding property projects and impressive achievements in the development, construction, sale and delivery of several projects throughout the year.

Today, we present you with the annual report of your company for the financial year ending on 31 December 2017. Our review features a detailed breakdown of the financial results and a glimpse of the achievements by the company during the past fiscal year.

Because your satisfaction and the satisfaction of our customers is our top priority, we assure you that Al Mazaya is committed to delivering premium products, projects and real estate services year after year. We attribute this success and our march of excellence to the trust you have placed in us  to maintain Al Mazaya Holding's achievements, and to take further steps on the path to perfection.

My Fellow Shareholders,

Al Mazaya has a wide portfolio of real estate projects launched in line with international standards and criteria. Our top priority is our relationships with our investors that is governed by full transparency and disclosure, which provides our investors unrestricted access to the company's workings and operations.

Al Mazaya continues to strengthen its presence and competitiveness within the GCC and the Middle East through its active participation in real estate conferences and exhibitions to promote its brand and projects, reaching the largest segments of investors and customers.

Brothers & Sisters,

In 2017, Al Mazaya posted KWD 7.22 million in net profits, with earnings per share reaching 11.60 fils. We continued to boost operating performance thanks to an intensive focus on a robust operating plan that is based on a well-integrated strategy and a strict timeframe. The company’s total operating revenues increased to KWD 68.61million by the end of the year, which represents a growth of 24.36 % from KWD 55.17 million by the end of 2016. The group’s operational resilience is attributed to well-thought-out marketing and sales plans that secured sales revenues of KWD 60.83 million for 2017 against KWD 47.81 million by the end of 2016— a growth  of 27.22 %. Rental revenues increased by 6.80% to KWD 7.60 million by the end of 2017 against KWD 7.11 million for the same period in 2016

The company's vision of expansion and tapping into new markets, which started several years ago, has increased our total assets to  KWD 229.81 million at the end of 2017, with total stockholders' rights hitting KWD 119.11 million by the end of 2017.

The Board of Directors of Mazaya Holding consistently adheres to and recognizes the integrity and the credibility of the financial statements and the reports provided to the shareholders that covers the details of all the financial aspects and operating results of the company.

Valued Shareholders

Al Mazaya has been fully committed to apply the new accounting standards, calculating all essential provisions and selling all low-yield units on the back the company’s robust operational model. Its stable financial results from a determination to maximise its shareholders’rights, further strengthen its financial position, and protect the company’s budget against any future risks. This carefully-crafted and conservative approach has had its own bearing on the company’s net profit by the end of the year.

In a token of gratitude to its stockholders and a demonstration of our strong belief in recognising their contributions to the company’s growth, Al Mazaya Board of Director has recommended thedistribution of8 % of the par value of the stockin cash– equivalent to 8 fils per share to all shareholders in a move that reflects the robust financial position of the company and its resilient balance sheet as well as its balanced future outlook.

Noble Attendees

The year 2017 witnessed a series of achievements that we would like to present to you as they constitute quality projects that ideally fit within our ambitious strategy.

During the last year, we signed a new investment contract for managing the company’s third project in the medical sector after our previous success in the healthcare field.

Al Mazaya Holding was pre-qualified in 2017   for six new investment opportunities to develop and operate residential cities in Jaber and Sabah Al Ahmad areas for the Labor Camp Project in South Jahra.

With regards to our projects, the company has completed the development of a world-class medical building to serve as an individual health clinic in Sabah Al Salem. The project has totally been rented out to leading doctors in Kuwait.

Al Mazaya also developed and delivered four projects in Dubai in 2017, and acquired two plots of lands as part of the Q-Zone II project, located in theLiwan, Dubailand. Design and execution works have already startedfor the project. The company completed the concept design stage at its new project in Al Sharq area in Kuwait (Mazaya Downtown). Al Mazaya has achieved tangible progress for the Al Mazaya Residence project in Oman. We also continued the selling and renting of the  Ritim Istanbul Development. Al Mazaya Logistics project in Bahrain Investment Wharf has been totally rented out at a 100% occupancy rate. Al Mazaya Holding continued its rental operations at its commercial towers in Al Olia and Al Maathar areas, Riyadh.

Noble Shareholders,

We assure you that Al Mazaya Holding is moving towards a bright future. We thank God the Almighty and the virtue of your support to us. We will continue to advance Al Mazaya towards universality through the planned expansion into new markets in the near future. We will continue to work diligently on the development of existing and new projects, as per our innovative plans and in accordance with our in-depth studies.

Finally, I would like to extend my thanks and gratitude to all those who have contributed to these results and successes. I also take this opportunity to express my deep thanks and appreciation to the members of the Board of Directors and to all our colleagues at the company for their efforts and dedication.

May God's peace and mercy be upon you,

Rashid Yaqoub Al Nafisi

Chairman

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