Eshraq Investments, the Abu Dhabi-based investment and real estate company listed on Abu Dhabi Securities Exchange, has reported a net profit of Dh3 million ($816,644) for 2018 versus a net profit of Dh32.5 million ($8.84 million) the period year.
These results represent a second year of profitable operations for Eshraq under the new management, said the company in a statement.
Eshraq said its hospitality, leasing, investments and development segments contributed to the company’s profits.
The Abu Dhabi group’s hospitality and leasing business maintained its market leading rental yield, and occupancy rates of more than 91 per cent in 2018, outperforming its peers.
Eshraq’s investment portfolio contributed finance and investment income.
On the development front, Eshraq’s Marina Rise project construction is 19 per cent complete and is targeted to be ready by the second quarter of 2020.
Once ready, Marina Rise will be company’s first development project to contribute to the bottom line from next year.
As a result of the slowdown in the UAE real sector and drop in asset prices, Eshraq has taken non-cash impairment on its investment properties which negatively impacted its profitability, said the company in a statement.
Eshraq’s target to diversify its revenues sources worked in favour of the company in 2018 as its investment portfolio offset the impact of decline in real estate earnings.
Chairman Jassim Alseddiqi said 2018 was the year when Eshraq implemented its new vision. The efficient utilisation of Eshraq’s excess cash balance helped the company to shift slowly from a pure real estate development activity to investments in real estate and Commercial assets and funds.
The new corporate identity and change of name represents a necessary step to emphasise this transformation. The effective deployment of excess cash into income generating investments helped cushion the slowdown faced in the real estate sector. Eshraq has several investment opportunities in various new sectors outside real estate, it stated.
"The enlarged scope of business activities magnifies the investment opportunities that Eshraq is now able to consider and invest in to maximize shareholders’ value," he added.-TradeArabia News Service