Eshraq Investments reports AED 10.26mn of net profit as activities diversification pays off
- Q1 profit of AED 10.26 million, representing a significant turnaround on Q1 2020 net loss of AED 47.15 million
- Board continues to drive its comprehensive diversification strategy with investments in financial and technology assets, achieving AED 7.62 million gain on investments for the quarter
- Company’s maiden development project Marina Rise on track for completion in Q2 2021
Eshraq Investments PJSC ("Eshraq" or "Company"), the Abu Dhabi-based investment company listed on the Abu Dhabi Securities Exchange ("ADX"), declared its financial results for the first quarter of 2021. The Company reported an operating profit of AED 10.26 million in the first quarter of 2021, a considerable turnaround compared with the first quarter of 2020.
Diversified portfolio driving uplift
Even with the ongoing challenges caused by the pandemic, Eshraq attained a gain on investments of AED 7.62 million. This reflects the benefits of the Board's diversification strategy implemented in early 2019, and the gains from its investments in financial and technology assets in particular. Meanwhile, Eshraq's leasing and hospitality businesses maintained their above-average performance, achieving occupancy rates of 98% and 97%, respectively, due to the company's proactive and agile leasing strategy.
As part of Eshraq's optimization efforts, the Company also reduced direct and general and administrative costs by 19% and 16%, respectively.
On the development front, the Company's maiden development project Marina Rise at Reem Island is on schedule for completion in the second quarter of 2021 and the company is hand in hand with various authorities for the formalities associated with completion.
Jassim Alseddiqi, Eshraq's Chairman, said, "Our shareholders recently recognized the benefits of our strategy to transform and diversify Eshraq's investment portfolio away from real estate investments by renewing our mandate for the next three years at the AGM. I am pleased to be able to report that our Q1 financial results reflect the progress we are making in creating value from a more diversified portfolio with investment gains as well as strong growth in our cash profits. We look forward to the delivery of the soon-to-be-completed Marina Rise development in Reem Island, which will not only demonstrate the technical excellence of the team but will also be a step towards monetizing our land bank and improving our bottom line."