Manazel posts AED 195mn profit up by 29%

Manazel - Mohamed Al Qubaisi copy

Abu Dhabi / Emirates Business

Manazel Real Estate PJSC (”Manazel”), a leading UAE developer, on Monday announced its results for the twelve months ended 31 December 2015, the first full year results since listing on the Abu Dhabi Securities Exchange in November 2014.
Strong growth in earnings reflects a robust performance for the year. Net profit grew 29% to AED 195 million from AED 152 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 AED 740 million, compared to AED 739 million in 2014 driven by the strong demand for Manazel’s Reef 2 villas project during the year. This reiterates the continued demand for affordable housing and supports Manazel’s core business strategy of targeting the middle income
The stability in revenues can also be attributed partly to recurring rental streams from Manazel’s portfolio of mall/retail areas, commercial and residential properties and district cooling, demonstrating Manazel’s long term strategy to diversify into recurring revenue-generating streams in closely aligned growth sectors. The Company’s total assets increased from AED 3,626 million to AED 4,191 million and the shareholder’s equity increased from AED 2,015 million in 2014 to AED 2,602 million as at the end of 2015 resulting in Book Value of AED 1.04 per share as at 31 December 2015, compared to AED 0.81 as at 31 December 2014.
Basic earnings per share were AED 0.08 compared to AED 0.05 in the previous year, on a capital base of AED 2,500 million.
Commenting on the FY 2015 results, Manazel’s Chairman Mohamed M. Al Qubaisi said: “Over the last 12 months, we have focused on growing both our core business whilst diversifying our revenue as we seek to optimize significant shareholder value over the longer term.
We have invested in our human capital and wider business infrastructure and as a business we are now uniquely positioned for steady and sustainable long term growth.”
Operational highlights
Following the successful handover of 1,818 apartments and 2,376 villas in Manazel’s Al Reef complex in 2014, the company focused on its Al Reef 2 project during 2015, which consists of 860 villas located in Samha, near Kizad and Khalifa Port in Abu Dhabi. As at the end of December 2015, Manazel had sold most of the units in Reef 2, demonstrating the increasing appeal for affordable, quality homes in the United Arab Emirates.
Manazel has also its capacity in its District Cooling assets to generate revenue for the company. The advanced, energy-efficient cooling plants constructed for its Al Reef, Capital Mall and Prestige Towers developments, have reduced maintenance and operational costs as well as provided an additional revenue stream for the company from its tenants.
During the period, Manazel’s management team was strengthened with the appointment of Balaji Prasad, Chief Financial Officer, and Waleid Gamal Eldien, Chief Investment & Commercial Officer, supporting the company’s expansion in new sectors and markets with an experienced team. The acquisition of non-controlling interest of two of its subsidiaries in 2014 allowed Manazel to strengthen cash flow, increase profitability and management control in preparation for expansion during the period. Manazel expanded services of the now 100% owned Census International General Maintenance and Manazel Specialist Real Estate subsidiaries during the twelve months to 31 December 2015.
Post period end, Manazel announced the creation of a new subsidiary called Manazel Malls, which will take operational and managerial control of Capital Mall and all retail areas in Al Reef 1 and Al Reef 2 in addition to future retail projects. The new subsidiary ensures a dedicated, professional and experienced team is responsible for Manazel’s retail operations and will drive operational efficiencies and improve performance across this line of the business.
Manazel Malls will continue to invest in the development of retail areas in the large-scale residential Al Reef. The leased units provide a range of community services including a supermarket, food and beverage outlets, a pharmacy, telecoms outlets, car rental, laundry, barber, ATMs, a pet shop and spa services.

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