FY 2017 (Million KD)	FY 2016  (Million KD)	Var (%)	Q4 2017 (Million KD)	Q4 2016 (Million KD)	Var (%)
Operating Revenue	38.5	33.9	+13.6%	16.6	13.4	23.8%
Gross Profit	12.1	13.9	(13.4%)	1.5	3.3	(53.4%)
EBITDA	13.9	19.6	(29.2%)	(1.4)	6.1	(123.1%)
Net Profit	10.6	16.1	(34.3%)	(2.0)	5.0	(139.7%)
EPS (fils)	11.3	17.2	--	--	--	--

 

Kuwait, March 13, 2018 -   National Real Estate Company (NREC), a leading regional asset manager and developer headquartered in Kuwait with USD2 billion in projects under development in the UAE, Egypt and other markets, today released its financial results for 2017.

 

The Company recorded an operating revenue of KD38.5 million, an EBITDA of KD13.9 million and a net profit of KD10.6 million. NREC’s core operational activity continues to grow, however the decrease in the EBITDA and Net Profit for the year is mainly attributed to a fair valuation write down taken on BOT projects nearing their expiry within NREC’s portfolio.

 

 

The Board of Directors has recommended a dividend distribution of 10% of bonus shares, subject to approval of the General Assembly of Shareholders.

 

 

NREC Vice Chairman Faisal Sultan said, “2017 was a very active year on many fronts. Operationally, our rental business in Kuwait and Jordan continued to perform, our Libyan business has improved with the improving of security situation in the country, and the Kuwait market presented new business opportunities that we are actively pursuing. Current developments continued to progress as well. We have crossed important milestones in our two largest projects, Grand Heights in Egypt and Reem Mall in UAE. Both projects are progressing well and in line with expectations. Our balance sheet was also an area of constant focus.

 

In 2017 we worked on strengthening our balance sheet, with good results to date, looking forward 2018 will be a year where NREC continues to focus on asset repositioning and debt reduction, with a stated objective of reducing leverage to below KD 100 Million.  This objective along with the execution of our ongoing projects, is an essential first step towards restoring regular cash dividend payments to shareholders”.