Kuwait City, May 18: National Real Estate Company (NREC) held today its shareholders’ Annual Ordinary General Assembly Meeting (AGM) for the financial year ended 31 December 2023, with a quorum of 72.72%. The meeting took place electronically.

The Company’s shareholders approved all items on the AGM agenda, including the Board’s recommendation to distribute 5% bonus shares, i.e., 5 shares for each 100 shares. Shareholders registered on the Company’s shareholders record on the settlement date of 26 June 2024 are entitled to these bonus shares. The distribution date is 4 July 2024.

The Company reported a net loss attributable to the owners of the Parent Company of KD 35.2 million and a loss per share of 19.8 fils in 2023, compared to a net profit attributable to the owners of the Parent Company of KD 17.9 million and an EPS of 10.1 fils in 2022.

The Company’s operating revenue came in at KD 12.4 million for the year ended 31 December 2023, as compared to KD 26 million in 2022.

Embracing Local Opportunities: Our Commitment to Kuwait's Growth and Prosperity

NREC Vice Chairman and Chief Executive Officer, Faisal Jamil Sultan Al-Essa, stated: “I am proud to reaffirm our strong commitment to embracing local opportunities and contributing to Kuwait's growth and prosperity. Since our establishment in 1973, we have been deeply rooted in the Kuwaiti business landscape, drawing strength from our heritage and the diverse cultural fabric of our nation.”

“Management is presently exploring diverse investment opportunities in Kuwait, underscoring our confidence in Kuwait's potential for the near future”, added Sultan.

Updates on Reem Mall: Optimistic Outlook Amidst Abu Dhabi's Thriving Business Climate and Reem Island's inclusion in ADGM

Sultan said: “We maintain an optimistic outlook on the mall's future performance, given the favourable business climate in Abu Dhabi, and Reem Island's inclusion in ADGM.”

“Reem Island's inclusion in the Abu Dhabi Global Market (ADGM) as a free zone offers significant benefits to Reem Mall and its tenants”, added Sultan.

“This includes a business-friendly environment with streamlined regulations, enhancing operational efficiency. The collaboration between ADGM and Reem Island is set to create substantial value, fostering a favorable business landscape and abundant growth opportunities.”

“Businesses on Reem Island will enjoy advantages such as global recognition, enhanced market access, competitive tax rates, innovation support, efficient dispute resolution, access to diverse financial services, and networking within the ADGM ecosystem.”

Updates on Grand Heights

The Company's residential project in Egypt, Grand Heights, has made significant progress in developing and delivering residential units.

The percentage of units sold across the whole project as of the end of 2023 was 81%.

Total sold units across the entire project in Egypt stood at 7,300 and the remaining unsold units stood at 1,676 by year-end.

Updates on Key Operational Assets

In 2023, Jordan's South Aqaba Investment Park continued its upward performance trend, with rental revenues growing to KD 975 thousand, a 7% increase from the previous year. The park maintained a solid occupancy rate of 90% for warehouses and full occupancy for industrial buildings.

In Libya, The Palm City Residences saw an increase in occupancy, reaching 57.9% by the end of 2023 compared to 52.5% in 2022.

NREC’s strategic investment in Agility Public Warehousing Company K.S.C.P.

In addition to its core real estate business, NREC is the largest shareholder with a 22.3% share in Agility Public Warehousing Company K.S.C.P.

Agility is renowned for transforming supply chains to be smarter, faster, greener, fairer, and more efficient. It takes pride in its outstanding growth and value creation for shareholders, establishing itself as a top provider of supply chain services, infrastructure, and innovations.

Agility Global PLC, a subsidiary of Agility and a manager of critical company operations and assets including Menzies Aviation, Tristar Transport LLC, Agility Logistics Parks, and the DSV investment, has recently been listed on the Abu Dhabi Securities Exchange (ADX). With Agility holding a controlling stake of 51%, we anticipate that this milestone will enhance value for Agility’s shareholders and benefit our strategic investment in the company.

Closing Note

Sultan stated: “I would like to take the opportunity to express my gratitude to our shareholders for their support of the Company's strategy and to thank all our stakeholders for their continued trust and confidence in our Management team.” Established in 1973 and listed in Boursa Kuwait, National Real Estate Company (NREC) is a real estate investment, development and property manager based in the Middle East and North Africa. The Company’s portfolio comprises a mix of retail, commercial and residential properties in the region.