Manazel Real Estate posts robust performance in 2015

Abu Dhabi / EMIRATES BUSINESS

Manazel Real Estate, a leading UAE developer, hosted its Annual General Meeting (AGM) to review the company’s financial performance for 2015 and provide an outlook for the year ahead.
Manazel delivered strong growth in earnings with a 29 percent growth in net profit to AED195 million (it was AED152 million in 2014) driven by the benefits of a successful restructuring strategy initiated in 2014 and an enhanced sales and marketing initiative guided by an experienced management team.
Revenues for the period were stable at AED740 million (it was AED739 million in 2014), driven in part by strong demand for Manazel’s Al Reef 2 villas project and growth in recurring income, which the Company attributes to its portfolio of mall and retail areas, district cooling plants, and commercial and residential properties.
“This was a pivotal year for Manazel Real Estate as we advanced our commitment to the middle-income segment in the UAE with housing and retail offerings,” said Manazel’s Chairman Mohamed M. Al Qubaisi.
“As a pioneer in the middle-income segment, we are uniquely positioned to support this underserved sector and to support the government of Abu Dhabi as it strives to make affordable housing more abundant in the years to come. In 2016, we will continue to invest in our business to capture new opportunities in and outside the UAE,” added Al Qubaisi. The results reinforce Manazel’s long-term strategy of diversifying revenue streams in order to generate recurring income and balance the cyclical nature of residential real estate.
The Company’s total assets increased to AED4,191 million (it was AED3,626 million in 2014) and the shareholder’s equity increased 29 percent to AED2,602 million (it was AED2,015 in 2014 million) resulting in a book value of AED1.04 per share (it was AED0.81 in 2014) as at December 31, 2015.
At the AGM, all resolutions were duly passed by the shareholders who voted in favour of a 4 percent bonus share distribution for the 2015 financial year. The distribution of the bonus shares will be subject to all regulatory approvals.
“Manazel Real Estate has achieved solid growth in 2015 through its business strategy of diversifying its sources of income by investing in other sectors alongside the real estate sector,” said Manazel’s Chief Executive Officer, Hassan Fahmi.
“These measured plans generated additional revenue for the company and created value for our shareholders. During 2016, Manazel Real Estate will continue to follow its blueprint of diversification and leverage its balance sheet to grow its brand across the region,” pointed out Fahmi. Headquartered in Abu Dhabi, UAE, Manazel Real Estate is one of the nation’s leading developers of quality homes for the country’s middle income segment of the population. It has a substantial share in the industry.
Through strategic investments spanning residential and commercial developments, Manazel has succeeded in striking a balance between creating thriving, sustainable communities while providing the highest returns for shareholders and investors.