Al Nafisi:  Al Mazaya Holding addresses realty market’s rapid developments & geopolitical challenges through a well-thought-out strategy that reflected positively on 2018’s financial statements

Al Saq’abi: We have increased operating revenues generated from rentals to KWD 8.38 million in 2018

- 80 % occupancy rate at “Mazaya Clinic III” in Bneid AL Qar, with rental returns to be added to Company’s income-generating streams of 2019

- Securing construction license for Mazaya Downtown at the heart of Kuwaiti Capital with construction to start in 2019

-Company’s medical project in Sabah Al Salem ( Wara Hospital) is being run by renowned Kuwaiti doctors

-Completion of Phase I & Phase II of Mazaya Residence in Oman- Muscat

-Selling 200 apartments worth KWD 13.58 million despite market challenges

Financial Highlights -2018

Al Mazaya Holding’s ordinary and non-ordinary General Assembly meetings convened on Monday, April 8th, in the Company HQ at Al Mazaya Towers in the heart of the Kuwaiti Capital at a participation percentage of 71.3.

The ordinary General Assembly convened under the chairmanship of Board Chairman Rashid Al Nafisi and in the presence of all Board members and the Group Chief Executive Officer Eng. Ibrahim Abdul Rahman Al-Saq'abi along with representatives of the Ministry of Trade and Industry, auditing offices, the heads of the Company’s various departments, a number of investors and a host of local and regional media representatives.

At the beginning of the meeting, the company’s key 2018 milestones were reviewed through a documentary featuring real footages of all the company’s projects ongoing inside and outside Kuwait.

Al Nafisi presented the Board of Director’s report on the 2018’s achievements that were achieved despite the economic and geopolitical headwinds witnessed on the markets where the company is operating, including the price corrections in a number of countries primarily the UAE, which have had their own bearing on the company’s financial statements.

The report touched on the approach pursued by the company while addressing these challenges, including the alternative plans that have been adopted to mitigate and avert markets risks as much as possible.

Addressing the meeting, Al Nafisi said, “Thanks to Allah Almighty Al Mazaya Holding’s total net profit amounted to KWD 5.1 million with earnings per share standing at 8.1 fils. Operating revenues generated by rental and sales returns stood at KWD 22.06 million by the end of 2018 against KWD 68.61 million by the end of 2017. Sales-generated revenues stood at KWD13.58 million against KWD60.83 million in 2017. In the meantime, revenues generated by rental returns jumped 10 percent to KWD8.38 million from KWD7.60 million during the corresponding period in 2017.”

Al Nafisi added that Al Mazaya Holding’s total assets reached KWD225.62 million by the end of 2018, with stockholders’ rights amounting to KWD104.12 million by the end of the foregoing year.

“In accordance with the Corporate Governance Rules, Al Mazaya Holding Board of Directors acknowledges and guarantees the integrity and authenticity of the company's financial statements along with all the reports submitted to Shareholders that include the company's financial profile, data and operating results,” Al Nafisi affirmed.

Ordinary General Assembly Meeting’s Agenda

The ordinary General Assembly Meeting’s agenda items, reviewed by Al Nafisi, were all approved and the attendees were listened in a report by the auditing committee along with the corporate governance report of the Fiscal Year ended in 2018. They also listened and approved the auditor’s certificate as well as the 2018’s financial results.

The auditor indicated that there have been no violations or penalties reported against the company during the year.

The Board Members were discharged from liability for the fiscal year ended on December 31st.

Al Nafisi read the Board’s recommendations that no dividend shall be declared or paid for the fiscal year ended December 31 2018; nor will there be any bonus by the company for the board members for the same year. The said recommendations were approved by the attendees.

The following new board members have been elected for the three years:

1- Mr. Rashid Al Nafisi

2-Mr. Abdulhameed Mehrez

3- Mr. Mohammed Al Othman

4- Al Mizan Company

5- United Circle Company

Non-Ordinary General Assembly Meeting’s Agenda

Al Nafisi then opened the Non-Ordinary General Assembly Meeting whose agenda featured a new addition to the company’s articles of association, under which the company may issue various types of Sukuk and bonds as per the law and prior approval of all competent regulators.

For his part, Group CEO Eng. Ibrahim Abdul Rahman Al-Saq'abi said that 2018 was a year replete with tough challenges that “we have managed to survive thanks to a well-thought-out strategy toward the major changes witnessed across the real estate markets we are working on.”

He added that “we are determined to lay down a strong basis for our future ambitions by diversifying our investment portfolios through innovative strategies. We are making a steady progress while pursuing a business-to-business focus of sustainability standards based on the principles of transparency and credibility.”

“Amidst the drastic market changes witnessed across the year, the company managed to maintain its revenues generated from its main income streams, maintaining a steady growth in its rental-generated revenues as a result of diligent efforts made to maintain good occupancy levels across the company’s income-generating projects, with the revenues generated by rental returns jumping from 10 percent  to KWD8.38 million,” he added.

“Al Mazaya Holding boasts of a unique dynamic and elastic business model that enables the company to adapt to the requirements of the markets we are operating in,” Al Saq’abi noted.

”This manifests itself in the geographically diversified portfolio of projects we are managing that depends on various streams of revenues enabling the company to avoid market risks.”

He added that 200 apartments worth KWD13.58 million have been sold and handed over by the company in 2018 in Dubai and Turkey despite market challenges.

“This has been achieved thanks to a resilient sales policy that reduced the company’s exposure in the mentioned markets,” he explained.

In addition, Al Mazaya Residence Al Mawaleh's Phase I in Oman, has been fully completed and a householders' association has been established and registered with competent authorities in the Sultanate. Over 60 % of the project’s 148 apartments and shops have been sold.

Al Mazay 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.

“An occupancy rate of 80% has been secured so far, with work being in full-swing to equip the building and prepare the project for receiving its contracting doctors.”

Al Saq’abi highlighted the company’s success in supporting Kuwaiti investors to operate the Wara Hospital which opened earlier this year in the presence of Minister of Health Sheikh Basil Al Sabah.

He noted that the company has completed the schematic design phase at its new project in Al Sharq area in Kuwait (Mazaya Downtown).

“The project consists of a five-star hotel and a series of restaurants and a medical centre.”

The CEO concluded by extending sincere thanks and gratitude to the Company’s Board Chairman and Members for their unlimited support.

He also expressed his full appreciation to the company’s shareholders and all those who have contributed to the company’s successes.

“I renew my thanks and appreciation to the company’s executive teams for their diligent efforts in performing their tasks in the best possible manner and for their dedication to the company’s vision, mission and values as well its strategic plans to achieve the ambitions our loyal customers.”