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Al Mazaya Holding’s rental revenues up 10% to KWD 8.4 million in 2018
The company declares KWD 5.1 million net profit for 2018; Earnings per share 8.2 fils
-Al Mazaya Holding addresses realty market’s rapid developments and geopolitical challenges that is reflected on 2018 end of year financials.
-We focused on increasing our Revenues from Income generating assets to support our fixed income in different markets
- Operating revenues generated from sales worth KWD 13.58 million
- Operating revenues generated from rentals worth KWD 8.38 million
-Total operating revenues at KWD 22.06 million
-Total assets stand at KWD 225.62 million
-Shareholders’ equity worth KWD 104.12 million in 2018 & book value equals 146 Fils
- Signing new investment contract for managing “Mazaya Clinic III” in early 2018 and project’s rental returns will be added to Company’s income-generating streams
- Securing construction licence for Mazaya Downtown at the heart of Kuwaiti Capital
Al Mazaya Holding has announced its 2018 year-end financial results following the company’s board meeting which was held on March 10 under the chairmanship of Board Chairman Rashid Al Nafisi and in the presence of all Board members and the Group Chief Executive Officer.
On this occasion, Al Nafisi said that Al Mazaya Holding continued to boost its operating performance in 2018, thanks to “an intensive focus on a robust operating plan based on a well-integrated strategy and a strict timeframe amid mounting challenges witnessed in the region’s markets in general and in the markets where we’re operating in particular. These included the price corrections witnessed in the UAE market, particularly Dubai which has been significantly impacted by an oversupply of residential units of different types. This was coupled with heated competition between real estate developers which has ultimately resulted in a price fall, lower sales and slower collection of payments.”
He added, “global economic and geopolitical developments have had their bearing on the Turkish real estate market which experienced a significant decline in economic activity in general and across the property sector in particular. A number of other markets in the region also suffered negative developments and reduced sale prices due to various economic factors.
“Al Mazaya Holding has been influenced by such a landscape that reflected on the company’s financial results in a way that necessitated the development of alternative plans to mitigate the impact of such changes and avoid as much as possible market risks.”
With regards to 2018 financial results, Al Nafisi said the company continued to report fair operating and financial results in light of the current circumstances thanks to the directives of the Board of Directors and the diligent efforts made by the Executive Management and the various squads.
“Thanks to Allah Almighty Al Mazaya Holding’s net profit amounted to KWD5.1 million with earnings per share standing at 8.2 fils. Operating revenues generated by rental and sales returns stood at KWD 22.06 million by the end of 2018. Sales-generated revenues stood at KWD13.58 million. In the meantime, revenues generated by rental returns jumped 10 per cent to KWD8.38 million from KWD7.60 million during the corresponding period in 2017.”
Al Nafisi added that Al Mazaya Holding’s total assets reached KWD225.62 million by the end of 2018, with stockholders’ rights amounting to KWD104.12 million by the end of the foregoing year.
On his part, Group CEO Eng. Ibrahim Abdul Rahman Al-Saq'abi said that the financial results achieved by the Company in 2018 reflect the sales and rental operations carried out by the company during the year. “The revenues have been affected by lower sales-generated revenues as a result of the price falls witnessed across the markets we are operating in. In the meantime, Al Mazaya Holding maintained steady growth in its rental-generated revenues as a result of the diligent efforts made to maintain good occupancy levels across the company’s income-generating projects, which boosted direct and indirect revenues to the best interest of the company and our stockholders,” Al-Saq’abi explained.
“Al Mazaya Holding boasts a unique dynamic and elastic business model that enables the company to adapt to the requirements of the markets we are operating in,” he added.
“This manifest itself in the various and geographically diversified portfolio of projects we are managing and which depends on various streams of revenues .
Al-Saq’abi further said that 200 apartments have been sold and handed over by the company in 2018 to its new owners.
He added that the company in the process of developing a business plan for the upcoming 5 years.
With regards to 2018’s milestones, Al –Saq’abi mentioned the following:
-Al Mazaya Residence Al Mawaleh's Phase I in Oman has been fully completed and a householders' association has been established and registered with competent authorities in the Sultanate. Over 50% of the project’s 148 apartments and shops have been sold. Al Mazaya Residence is an integrated residential project located in the Al Seeb Province in the heart of the Omani capital, behind City Centre.
-Construction work is completed 100% at the Al Mazaya Residence’s 132-unit Phase II.
--Al Mazaya has made significant progress in signing new investment contracts for managing its third project in the medical sector, “Mazaya Clinic III” which consists of 25 floors and a total area of around 4,000 square metres in Bneid Al Qar area. The work is going on in full-swing to equip the building and prepare it for receiving contracting doctors. Investment contracts have already been signed on the pharmacy area, radiology unit and coffee shop, which constitute the main elements to complete the operation of the building.
- Completion of the schematic design phase at its new project in Al Sharq area in Kuwait (Mazaya Downtown) through PACE, an integrated architecture, design, planning and consulting firm based in Kuwait. The construction license has been obtained and construction work will start.
-- Continuing selling and renting of Ritim Istanbul Development, which consists of 6 residential towers and a mall. The occupancy rate at the mall, which houses a collection of world-class brands, reached 60% so far.
-Up to 200 apartments have been sold by the company in its middle-income residential projects in Liwan area in Dubai.
-New credit facilities have been secured from local and Gulf banks to develop new projects.
- Capital Intelligence Ratings affirmed the ratings of Al Mazaya Holding’s long-term and short-term ratings with a “Stable” outlook.