Profiteering off rents: Kuwait's Mazaya reports 630% increase in year-to-year profits
Kuwait’s Al Mazaya Holding Group reported on Sunday a profit of Dh40.3 million ($11 million) for the first half of 2014, up 631 per cent on the same period last year.
The Kuwait- and Dubai-listed company said the results were due to increased occupancy rates in recently completed residential developments and strong rental yields.
Revenue generated through rents during the first half of the year increased by 39 per cent to Dh32.5 million, according to the company.
“We have enjoyed a good start to 2014, marked by strong demand for residential and commercial premises,” said Ebrahim Al Saq’abi, Al Mazaya Group chief executive.
Occupancy levels in the Al Mazaya’s Gulf residential developments, including the Sky Gardens towers in the Dubai International Financial Centre (DIFC) and the Al Mazaya Towers in Kuwait, were between 80 and 100 per cent throughout the first half of the year.
The sale of completed residential and commercial developments boost group revenues by Dh82 million, the company reported. Total company assets at the end of the first half of 2014 are Dh2.9 billion, compared to Dh2.8 billion a year earlier.
“In the first half of 2014, we have made considerable progress in expanding our operations, launching Mazaya Turkey in order to focus on opportunities presented by the buoyant Turkish residential sector,” Al Saq’abi said.
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