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Abu Dhabi / Emirates Business
Eshraq Investments PJSC (Eshraq), the Abu Dhabi based investment company listed on Abu Dhabi Securities Exchange (ADX), reported a net profit of AED 7.5 million for the 9-month period ended September 30, achieving another profitable quarter.
Eshraq’s diversification plans continued to pay off with each of its business divisions recording profitability during the nine-month period. The company’s
leasing and hospitality businesses including its residential apartments in DIFC and Nuran Marina hotel apartments continued to outperform the market through their premium offering and quality, with occupancy rates touching 93% and 89% respectively. Eshraq’s investment portfolio also generated strong income from investments.
The construction of Marina Rise on Reem Island is expected to top out by the year end and on track for completion by Q4 2020. Marina Rise will be the first development project to contribute to Eshraq’s profit. Eshraq intends to develop existing and new land banks with the intention of completing one project every 12-15 months.
The Board of Directors resolved to offset losses accumulated during previous years amounting to AED 979,831,540 as at June 30, 2019 against the company’s paid-up capital and has received in-principle approval from the SCA. This will strengthen the company’s financial structure going forward and once implemented, will put Eshraq on track towards resuming dividend distributions.
The Board of Directors also approved renewal of the share buyback program, subject to regulatory and shareholder approvals.
In addition, discussions are ongoing with the Saudi authorities and the Company’s advisors in KSA, for the cross-listing of the shares of the Company on the Saudi Stock Exchange (Tadawul), and which cross-listing was previously approved by SCA. Saudi Capital Market Authority’s recent amendments to the Listing Rules on 30/09/2019 has paved the way to allow foreign companies such as Eshraq to cross-list its shares on Tadawul. The proposed plan for a capital reduction and the offsetting of losses will also further the Company’s opportunities in this direction.