National Real Estate Company (NREC), a Kuwait-based developer with projects exceeding $1 billion in both Egypt and the UAE, has recorded growth in top-line earnings of 52 percent and a net profit KD7.6 million.
The company behind the upcoming Reem Mall in Abu Dhabi, said revenue growth was driven by income generating assets in Kuwait, Jordan and Egypt, where NREC is developing a 3.8 million square metre residential community.
The company is also developing Reem Mall, a two million square foot major shopping destination in Abu Dhabi. Reem Mall will house more than 450 stores including 85 restaurants, a large hypermarket, and family entertainment zones that include the world’s largest indoor snow-play park.
Operating revenue for the first six months of 2016 totalled KD14.9 million, up 52 percent from H1 2015 while net profit fell one percent to KD7.6 million.
NREC CEO Samuel Sidiqi said: “We are pleased to report record revenues for the first half of 2016 with our income generating properties in Kuwait, Jordan and Egypt performing well despite regional macroeconomic challenges."
In Abu Dhabi, he said the company is in the final stages of tendering the remaining works for Reem Mall after selecting Al Futtaim Carillion as the project’s preferred tenderer for construction.
"Our leasing program is on track and continues to exceed expectations. We maintain our positive outlook for the rest of 2016 driven by continued healthy performance in our core markets,” he added.
In Kuwait, the company said rental income grew by 4 percent from the same period last year to KD5.3 million. NREC has six properties in Kuwait, with Souq Sharq being the company’s primary asset.