Eshraq Investments, an Abu Dhabi-based company with an extensive portfolio of residential, hospitality and other real estate projects, has reported a 167 per cent increase in its net profit for the first half which soared to AED18 million ($4.8 million).

 

Announcing the results for the first half, Eshraq said its operating income rose to AED10.2 million, registering a 9.58% year on year growth.

 

Despite the ongoing challenges posed by the pandemic, Eshraq recorded a gain of AED15.36 million from its investments, particularly in financial and technology assets. 

 

Meanwhile, Eshraq's leasing and hospitality businesses returned to pre-Covid levels, with DIFC and Nuran achieving occupancy rates of 97% and 96% respectively, thanks to the company's proactive and agile leasing strategy, said the company in a statement.

 

The Abu Dhabi investor generated AED15.36 million in income during the first six months of the year, thanks to its comprehensive diversification strategy involving investments in financial and technology assets.

 

On the development front, Eshraq said its first mixed-use development at Reem Island, Marina Rise, has received its building completion certificate from Abu Dhabi Municipality and has commenced leasing its units. 

 

The completion of Marina Rise is an important step towards monetizing Eshraq’s land bank and improving its bottom line, it stated.

 

In light of the company’s enhanced profitability and significant growth thanks to the board's diversification strategy, implemented in early 2019, the board believes that the company is well positioned for a capital reduction to enable a positive net reserve by eliminating accumulated losses, said the statement. 

 

This will benefit shareholders as the company will be able to use future profits to pay dividends to the shareholders. The proposed share capital reduction plan will have no impact on Eshraq's net equity, it added.

 

Chairman Jassim Alseddiqi said: "I am pleased with the strong progress we are making on all fronts, whether it is increasing our profitability and investments through our diversification strategy or completing our first mixed-use development project on schedule."

 

"Looking ahead to the second half of the year, we remain committed to creating value for our shareholders through improved operational efficiencies and a stronger balance sheet," he added.-TradeArabia News Service