Leasing and hospitality businesses return to pre-Covid levels
Abu Dhabi-listed Eshraq Investments announced its half-year results for 2021. reporting a net profit of Dh17.95 million, an increase of 167.25 per cent compared to the year-ago period.
Despite the ongoing challenges posed by the pandemic, Eshraq recorded operating income of Dh10.20 million in the first half of the year, an increase of 9.58 per cent over the same period last year. The company also posted a gain of Dh15.36 million from its investments, particularly in financial and technology assets.
Meanwhile, Eshraq’s leasing and hospitality businesses returned to pre-Covid levels, with the DIFC and Nuran achieving occupancy rates of 97 per cent and 96 per cent 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 received its building completion certificate from Abu Dhabi Municipality and has commenced leasing its units. The completion of Marina Rise is an important step towards monetising Eshraq’s land bank and improving its bottom line.
In light of the company’s enhanced 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 to enable 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.
Chairman Jassim Alseddiqi said: “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.”
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