Al Mazaya Holding Declares Dh35.33 Million Net Profit for H1 2018

Al Mazaya Holding has announced its financial results for the first six months of 2018 declaring AED 35.33 million net profit and earnings per share at 5.65 fils.

On this occasion, following the company’s board meeting on Sunday, 22^nd July 2018, Group Chief Executive Officer Eng. Ibrahim Abdul Rahman Al-Saq'abi said that Al Mazaya Holding continued to boost its operating performance during the first half of the year, thanks to an intensive focus on a robust operating plan based on a well-integrated strategy and a strict timeframe that ramped up the company’s total operating revenues to AED 164.46 million for the first half of 2018.

Al-Saq'abi attributed the total revenues achieved by the company to the cost-optimisation plan adopted in line with the new strategy announced by Al Mazaya Holding recently that drove operating revenues generated from sales to up to AED 113.09 million, with rental revenues increasing 11.26% to AED 50.58 million against AED 45.46 million for the corresponding period last year.

Commenting on the company’s operations, Al-Saq'abi said Al Mazaya continued to secure high occupancy rates in its income streams across the region, including in Kuwait, Dubai, Saudi Arabia and Bahrain. The company has secured sale profits from its units set for sale, including those in Q-Series Projects in Dubailand as well as its Mazaya Residence Project in Oman.

Financial Statements

On the company’s H1 financial statements, Al Saq’abi said Al Mazaya Holding’s total assets reached AED 2,694.41 million by the end of the first half of 2018, while total shareholders` equity amounted to AED 1,315.19 million during the same period.

Milestones achieved during H1

-Al Mazaya is working on full-fledged financial and technical business plans to be submitted for developing residential cities in Jaber and Sabah Al Ahmad areas as part of the public-private partnership programme for the benefit of the Public Authority for Housing Welfare.

-Al Mazaya has made significant progress in signing new investment contracts for managing its third project at the medical sector, “Mazaya Clinic III” which consists of 25 floors and a total area of around 4,000 square metres in Bneid Al- Qar Area. Rental operations have already started at the project and work is on full-swing to equip the building and prepare it for receiving contracting doctors. Investment contracts have already been signed on the pharmacy area, radiology unit and coffee shop, which constitute the main elements to complete the operation of the building.

-Completion of over 30% of construction work at Q-Zone I project located in Liwan, Dubailand, with a capacity of over 500 residential units for mid-income categories. The project is set for completion by early 2019. Design and licensing works have already completed at the Q-Zone II project, located in the Liwan, Dubailand, with a capacity of over 450 residential units for mid-income categories.

-Completion of the schematic design stage at its new project in Al Sharq area in Kuwait (Mazaya Downtown) through PACE, an integrated architecture, design, planning and consulting firm based in Kuwait in preparation for getting the construction license from state departments concerned. This followed the completion of the concept design stage through Gensler, a leading architecture, design, planning and consulting firm based in London.

-Completing the construction work at Al Mazaya Residence Phase I in Oman, including power connection and issuance of the building completion certificate in preparation for starting delivery of residential and commercial units to the new owners following a large-scale marketing campaign that resulted in selling 37% of the first phase which consists of 148 apartments and shops. The integrated residential project is located in the Al Seeb Province in the heart of the Omani capital, behind City Centre. Construction work started at the Al Mazaya Residence Phase II in Oman which consists of 132 residential and retail units, thus completing more than 40% of this phase, which is expected to be marketed soon.

-Continued selling and renting of Ritim Istanbul Development, which consists of six residential towers and a mall. A large number of the project’s residential units have been sold, with the mall’s occupancy reaching 55% so far by a number of key regional and global brands.

Concluding, Al Saq’abi said the company is currently considering a number of investment opportunities available in the markets it is working in, in addition to those available on global markets specially in Europe in line with the company’s expansion plans. He added that the company is closely following up the ongoing developments on global financial markets and their impact on the realty sector in line with its expansion plans that are based on the development of strategic partnerships and working with leading investors to secure the highest possible returns for the company and its shareholders.