Eshraq Investments advances net profit by 167.25%, returning to strong growth and profitability

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Eshraq Investments advances net profit by 167.25%, returning to strong growth and profitability

H1 operating income of AED 10.20 million, representing 9.58% year on year growth, with net profit of AED 17.95 million

The company generated AED 15.36 million in investment income in the first six months of the year, thanks to its comprehensive diversification strategy involving investments in financial and technology assets

The Company's first development project Marina Rise has completed construction within the planned timeframe and has commenced leasing

The Board is proposing a capital reduction to offset accumulated losses

Abu Dhabi, UAE; August 06, 2021: Eshraq Investments PJSC ("Eshraq" or "Company"), the Abu Dhabi investment company listed on the Abu Dhabi Securities Exchange ("ADX"), declared its half-year results for 2021. The Company reported a net profit of AED 17.95 million, an increase of 167.25% compared with H1 2020.

Progress on all fronts

Despite the ongoing challenges put forward by the pandemic, Eshraq noted operating income of AED 10.20 million in the first half of the year, an increase of 9.58% over the same period last year. The Company also listed a gain of AED 15.36 million from its investments, particularly in financial and technology assets. Meanwhile, Eshraq's leasing and hospitality businesses returned to pre-Covid levels, with DIFC and Nuran achieving occupancy rates of 97% and 96% respectively, thanks to the Company's proactive and agile leasing strategy.

On the development front, Marina Rise, the Company's first mixed-use development at Reem Island, has acknowleged its Building Completion Certificate from Abu Dhabi Municipality and has commenced leasing its units. The completion of Marina Rise is an important step towards monetizing Eshraqs land bank and improving its bottom line.

In light of the Companys increased profitability and significant growth thanks to the Board's diversification strategy, implemented in early 2019, the Board believes that the Company is well positioned for a capital reduction facilitate a positive net reserve by eliminating accumulated losses. This will benefit shareholders as the Company will be able to use future profits to pay dividends to the shareholders. The proposed share capital reduction plan will have no impact on Eshraq's net equity.

"I am pleased with the strong progress we are making on all fronts, whether it is increasing our profitability and investments through our diversification strategy or completing our first mixed-use development project on schedule. Looking ahead to the second half of the year, we remain committed to creating value for our shareholders through improved operational efficiencies and a stronger balance sheet." said Jassim Alseddiqi, Eshraq's Chairman.