KHALEEJ TIMES, Tuesday, May 11, 2021 | Ramadan 29, 1442
Eshraq Investments reports Dh10.26m net profit
Emirates:
Eshraq Investments has announced its financial results for the first
quarter of 2021, logging in an operating profit of Dh10.26 million in the
first quarter of 2021, a considerable turnaround compared with the first
quarter of 2020.
Despite the ongoing challenges caused by the pandemic, Eshraq achieved a gain on
investments of Dh7.62 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 per cent and 97 per cent,
respectively, due to the company's proactive and agile leasing strategy.
As part of Eshraq's optimisation efforts, the company also reduced direct and
general and administrative costs by 19 per cent and 16 per cent, 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 coordinating with various authorities for the formalities
associated with completion.
Jassim Alseddiqi, Eshraq's chairman, said: "Our shareholders recently recognised
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 monetising our land bank
and improving our bottom line," he said.
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