Monday, March 27, 2017

Kuwait's Alargan posts 37pc jump in revenue

Alargan, a leading real estate company based in Kuwait, has reported revenues of KD26.8 million ($88.4 million) for 2016, marking an increase of 37 per cent compared to KD19.5 million ($64.3 million) the prevous year.

Announcing the 2016 results, the Kuwaiti real estate firm said its net profit for the year stood at KD1.8 million in comparison to a net profit of KD16.7 million, while its earnings per share (EPS) was 7.09 fils for the year ending in December over 65.32 fils the year before.

The increase in operational earnings were driven by the performance of the company’s core income-generating assets, advancements in new developments and strong sales of residential units, as well as yields generated from real estate investments in prime locations in the world, it stated.

Commenting on the performance, Khaled Al Mashaan, the chief executive and vice chairman of the board of directors of Alargan International Real Estate Company, said: "Despite a significant increase in our operational earnings, our bottom line in 2016 shows a decrease in comparison to the previous year because of an exceptional one-time gain of KD26.2 million from a divestment that was accounted for in 2015."

"Putting the one-time gain aside, operating profit increased in 2016 to KD2.95 million in comparison to a KD7.07 loss in 2015. Expenses decreased by 14 per cent from KD29.1 million in 2015 to KD25.1 million in 2016," he added.

Impressed with the results, the board of directors has recommended the distribution of 10 per cent cash dividends of the share nominal value (10 fils per share).

Al Mashaan said the company continued to deliver on its 2015 strategy which focuses on improving the performance of its core income-generating assets while operating through a combined developer and investor business model in an aim to deliver a sustainable business that adds value to shareholders, and provides life-enhancing and sustainable solutions in the region.

Alargan’s high-profile resort and commercial developments continued to generate stable revenues from rents and leasing in Kuwait and Bahrain, he stated.

According to him, the company has completed procedures to start leasing in its Alargan Business Park located in the Free Trade Zone, an area expected to boom with businesses following the completed transfer of the area’s management, and permissions provided to local investors and foreign investments bullishly supported.
Developments in Kuwait, Bahrain and Oman continued to advance and sales of housing units under development in Bahrain and Oman saw a strong growth during the year, he noted.

"Our most significant mixed-use and residential developments in 2016 were without a doubt the Al Waha and Telal Al Qurm projects in Oman which received great acclaims last year and saw the delivery of the first residential phase in Telal Al Qurm," remarked Al Mashaan.

"The new residential phases of our Jeyoun community in Bahrain followed in the success of ARGAN Village. Our commercial developments in Kuwait continue to attract demand thanks to the unique experiences they provide to visitors," he said.

Operating in a combined developer and investor model, Alargan has investment in the real estate sector in stable prime locations in Europe, the US and the UK to generate regular income and provide the opportunity for capital appreciation derived from asset values at exit, he added.-TradeArabia News Service

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