NASEEJ achieves BD 3.05 million net profit in 2019
Manama, Bahrain: Naseej Properties, one of the leading real estate developers in the Kingdom of Bahrain, held its AGM on Monday, May 29, 2020, remotely and online, headed by Naseej’s Chairman Sheikh Hamed bin Mohammed Al Khalifa and Managing Director Mr. Mohammed Khalil Al Sayed.
Sheikh Hamed Bin Mohammed Al Khalifa, Chairman of Naseej, announced the company's financial results for the year ended December 31, 2019, which confirm the company's good financial performance and continued profit for the tenth consecutive year since its inception.
Naseej's financial reports showed that net profit in 2019 was BD3.05 million compared to BD 4.04 million last year.
By the end of 2019, the total asset value was BD 107.4 million and shareholders' equity was BD 91.64 million. Based on these results, the Company's Board of Directors recommended a cash dividend of 2.5% (BD 2.16 million).
The results come as Naseej celebrates its 10th anniversary. Significant achievements have been made, particularly with regard to social housing projects.
Commenting on the results, Naseej Chairman Sheikh Hamed bin Mohammed Al Khalifa said the company has once again demonstrated its resilience and flexibility in performance. The financial results reflect the cyclical nature of the company's activities, ranging from three to five years from planning to delivery. He noted that during 2019, the Board of Directors had adopted steps aimed at establishing a more effective capital structure in line with key operational performance measures.
The Chairman said that since its inception in 2009, the company has continued to grow into one of the leading real estate developers in the Kingdom of Bahrain and one of the leading providers of social housing solutions, despite challenging conditions including economic downturns, financial crises and geopolitical tensions at the regional level.
He pointed out that Naseej has provided more than 2,500 units for affordable social housing during the past period through three projects with a total value of BD 148 million.
The company has also made progress in implementing its strategic plan to diversify its products in related sectors such as community retail facilities, healthcare and education. It acquired a 25% stake in Olive VFM, a subsidiary of Ithmaar Development Company, which offers comprehensive facilities management solutions.
"The real estate sector in Bahrain, with the strong support of wise leadership, is resilient and flexible in the face of macroeconomic challenges," said the Chairman. It has also maintained positive, albeit weak, growth in the last few years. The measures taken by the Real Estate Regulatory Authority over the past two years have resulted in the creation of a more transparent, stable and sustainable real estate market.
With regard to the outlook, Sheikh Hamed bin Mohammed Al Khalifa said that with a portfolio of projects under way, there is optimism about the company's future prospects, especially as the company prepares to receive two projects next year, which will have a positive impact on the company's revenues. He said 2020 is expected to see more challenges, particularly due to the Coved-19 pandemic. However, early and decisive measures taken by the Government of Bahrain to combat the spread of the coronavirus can help mitigate the social and economic repercussions of the pandemic.
He concluded by thanking His Majesty the King of Bahrain, His Royal Highness the Distinguished Prime Minister, and His Royal Highness the Crown Prince, who have been saved and nurtured by God, for their wise leadership and fruitful reform program, which provides great protection to various sectors, primarily the real estate sector in the Kingdom.
Mr. Mohammed Khalil Al Sayed, Managing Director of Naseej, said the company's many achievements reflect its success in implementing the vision of the founding shareholders of establishing an integrated real estate and infrastructure development company. The social housing projects developed by the company also confirmed the success of the Public-Private Partnership approach as a highly feasible and efficient model for meeting national housing needs.
Five projects worth 79.1 million dinars are currently under way, providing an additional 239 housing units, he said. Three of these projects are aimed at targeting beneficiaries of the Ministry of Housing's Mazaya program.
"We have also expanded our real estate bank by acquiring a strategically located 125,000 square meters of land in an area close to Amwaj Island. The company is also preparing to start other major projects, most notably the Arad project and the Amwaj project. In addition, Naseej is leading a consortium to bid for the construction of 132 housing units for economic housing in the Al-Lozi area.
The Managing Director pointed out that Naseej has developed a corporate social responsibility policy with the aim of achieving sustainable economic prosperity and social well-being in the Kingdom of Bahrain. This includes education, training, architectural and cultural heritage, health, safety and the environment, community participation, donations to charities and due causes, and support for the development of Bahrain's real estate sector.
With regard to the outlook for the future, he noted that, having proven resilient to various financial and economic crises over the past decade, Bahrain’s real estate sector is now facing a new challenge emerging from the economic impact of COVID-19. However, the growing demand for social and affordable housing is expected to continue in 2020. This will provide excellent opportunities for the sector-focused, while at the same time working on a strategy of diversifying activities by entering relevant subsectors such as retail, healthcare and education.
