Eshraq Investments posted a net profit of AED7.5 million

Real Estate

Eshraq Investments posted a net profit of AED7.5 million

AED 7.5 million net profit was reported for 9 months on September 30, 2019; Consistently profitable operating trend
Marina Rise on Reem Island (Abu Dhabi) is on track to be completion by Q4 of year 2020.
The Board of Directors calls will on the General Assembly to approve the reduction of capital accumulated losses by the special resolution
The Board of Directors recommends updating the stock repurchase program
Cross-listing process in Tadawul-KSA to restart after capital reduction

Abu Dhabi-based investment company Eshraq Investments PJSC ("Eshraq" or "Company"), listed on the Abu Dhabi Securities Exchange ("ADX"), for the nine months ended September 30, 2019, AED posted a net profit of AED 7.5 million, reaching another profitable quarter.

Eshraqs diversification plans recorded profit in each of its business divisions over a period of 9 months. The company's leasing and hospitality businesses, including residential apartments at DIFC and Nuren Marina Hotel Apartments, have surpassed the market by premium offerings and quality, with occupancy rates hitting 93% and 89%, respectively. Eshraqs portfolio also generated strong returns from investments.

The construction of Marina Rise on Reem Island is expected to be completed by the end of the year and on track for completion by Q4 2020. Marina Rise is the first development project to contribute to the Eshraqs Profit. Eshraq intends to done existing and new land banks with a intention of completing a project every 12-15 months.

The Board of Directors decided to offset the accumulated losses for the previous year amounting to AED 979,831,540 as of 30/06/2019 against the paid up capital of the Company and has received policy approval from the SCA. This will be implemented once the financial structure of the company is carried forward and strengthened, will put Eshraq on track to restart dividend distributions.

The Board of Directors also approved the renewal of the stock repurchase plan, subject to regulatory and shareholder approvals.

In addition, there are ongoing discussions with Saudi authorities and company consultants in KSA for a cross-listing of the company's shares in the Saudi Stock Exchange (Tadawul), and any cross-listing has previously been made by the SCA.The amendments to the listing rules of the Saudi Capital Markets Authority on 30/09/2019 have allowed foreign companies such as Eshraq to cross-list its shares on Tadawul. The Proposed plan to reduce capital and compensate for losses will also further increase the company's opportunities in this direction.