Abu Dhabi's Eshraq Investments reports highest ever quarterly profit of Dh474 million for Q3

Book value per share stood at Dh0.92 comprising entirely of tangible real estate and financial assets

Eshraq Properties owns the Nuran Serviced Residences in Dubai Marina. It purchased the asset from Emaar. - File photo
Eshraq Properties owns the Nuran Serviced Residences in Dubai Marina. It purchased the asset from Emaar. - File photo

A Staff Reporter

Published: Fri 11 Nov 2022, 1:55 PM

Eshraq Investments on Friday announced its results for the period ended September 30, 2022. The Company reported its highest ever quarterly net income of Dh475 million, a 27-fold jump year-over-year.

Eshraq’s book value stood at Dh0.9238 per share at the end of Q3 2022. The book value comprises entirely of tangible assets such as the Company’s real estate assets and financial investments. Eshraq has made rapid progress on monetizing its land bank, successfully selling three land plots totaling approximately 27 per cent of GFA for Dh160 million in the last two months. The sales further improve the liquidity and add to the income generating assets.

Income growth from real estate investments

Eshraq reported total operating income from real estate of DH 29.5 million for the period ended September 30, 2022, driven by Eshraq's leasing and hospitality businesses. Eshraq's Burj Daman Apartments, Nuran Marina Serviced Residences and Marina Rise in Reem Island achieved occupancy rates of 100 per cent, 89 per cent and 93 per cent, respectively, and Nuran Marina saw a 50% year-on-year increase in average room rates (ARR) - all thanks to the company's proactive and strategic leasing efforts.

Jassim Alseddiqi, Eshraq's Chairman. Supplied photo
Jassim Alseddiqi, Eshraq's Chairman. Supplied photo

Jassim Alseddiqi, Eshraq's Chairman, said, "On behalf of the Board, I would like to commend the efforts of the management team for a record setting third quarter. Key initiatives - whether it be the completion of the acquisition of Goldilocks, the implementation of the share buyback program or the land monetization program - are well underway and reflected in improved profitability and shareholder returns. We are confident that we can maintain and build on this momentum to strengthen Eshraq's financial perforamance and improve operational efficiency - all with the goal of creating long-term value for our shareholders."

Share capital reduction and impact post Goldilocks acquisition

Following SCA approval, Eshraq implemented a capital reduction to offset all accumulated losses, followed by a capital increase, as a result of which the total issued capital of the Company became Dh 2.82 billion as at Q3 2022.

The Company also completed the acquisition of Goldilocks fund through the issuance of 1.385bn new share to expand and diversify Eshraq's financial investments outside of real estate and hospitality. Eshraq also subscribed to additional Goldilocks shares through transfer of several of its financial assets, investments and liabilities in exchange for additional Class A shares of Goldilocks. Following the transaction, Goldilocks has become the core asset of the Company,

with the composition of the assets expected to provide greater stability and mitigation of market volatility risks, as well as improved returns.

In line with the Board's commitment to enhance shareholder returns, Eshraq repurchased an additional 14.4 million ordinary shares for a total value of Dh7.47 million by October 31, 2022, after receiving the necessary approvals from SCA for its share buyback programme.

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