Earnings per share (EPS) reached 177 fils compared to 79 fils reported last year. Al Mazaya has also reported a 77% increase in its return on assets, and a 62% increase in return on equity, with its total company assets amounting to Dhs5.9bn in 2008 compared to Dhs3.5bn in 2007. Equities reached Dhs3.3bn in 2008 against Dhs1.4bn in 2007, thus reaching a growth rate of more than 134%.
Following a board meeting held at the company’s headquarters yesterday afternoon, which was led by Al Mazaya Chairman, Rashid Al Nafisi, Managing Director and CEO, Eng. Khalid Esbaitah, and board members Omar Al Quoka, Fahad Al Ibrahim and Nasser Al Attar, Al Nafisi said:
“The company’s profits continue to increase on a balanced average, with a continuous growth in the investments and projects that Al Mazaya is executing locally and regionally.”
Al Nafisi went on to say that all company activities and projects have progressed substantially in the first 9 months of the current year, emphasizing that Al Mazaya’s profit came as a result of the company’s current progressive projects, both locally and regionally, and that the company’s business was not affected by the current financial crisis, which had a negative impact on the region and the Gulf’s market. The reason for this is that it the company works in an absolutely operational framework that is away from any risk factors in the financial market. Al Nafisi added that Al Mazaya has ample assets, enabling the company to engage in various projects and earn big profits.
Al Nafisi noted that the company’s projects and investments were carried out in accordance with a five year plan. These investments are starting to bear fruit as current projects reach advanced stages. The DIFC-based Sky Gardens residential project has contributed significantly to this leap, after the luxurious tower was completed and sold at a profit of Dhs984m, with Al Mazaya Holdings earning Dhs641m. The company has included Dhs353m from this amount in the current year’s budget, while transferring Dhs288m to next year’s budget.
Al Nafisi said that the Sky Gardens Tower is an embodiment of the recent series of successes achieved by Al Mazaya, adding that the company’s profits this year included profits gained by First Dubai Real Estate Development company, a subsidiary of Al Mazaya Holdings, through its takeover of First Waterfront Company, and through other projects such as Queue Point in Al Liwan, middle income groups project, of which 90% has already been sold, and which the company has invested Dhs2.04bn in. It has yielded a return of more than Dhs680m, which will be included as per progress. Construction is underway at Queue Point, which is scheduled for handover by the end of 2009, and profits will therefore be included in the 2009 financial results.
Business Avenue Towers and the Icon Towers residential project in Jumeirah Development have already sold out, with profits to be included in both the 2008 and 2009 financial results. Construction work has been completed on Icon Towers, while substantial progress has been made on Business Avenue Towers.
Al Nafisi went on to say that Al Mazaya has expanded its lucrative investments and increased its real estate assets in Dubai through acquiring the Al Mazaya flagship tower, a 60-storey state-of-the-art iconic office tower on Sheikh Zayed Road, and a 28-storey building in Downtown Jebel Ali, set to attract financial institutions and prominent companies. Al Mazaya has also sought to increase its Kuwait assets by acquiring a luxurious tower, currently under development in Kuwait Business Town.
Al Nafisi said that Al Mazaya’s strategic plan was developed according to sophisticated calculations to guarantee a balanced and continuous growth in shareholders’ profits and to protect the company from risks. The company has developed a significant portfolio of diverse mega projects which will ensure balanced growth and stable returns for at least the next five years.
According to Al Nafisi, the company has also made other important strides toward achieving horizontal expansion and diversifying investments to take a sizable portion of the ongoing real estate boom in the GCC countries. Al Mazaya has launched two residential projects in Oman, a commercial project on the prestigious Bahrain Financial Harbour, and a mega residential project in Al Ahsa, KSA. Mazaya Qatar and Mazaya Saudi, two real estate subsidiaries of Al Mazaya Holdings, were established in Qatar and KSA, respectively, in a move of tremendous progress that will translate into additional returns to boost the company’s financial position over the coming years.
The expansion plan has been accompanied by the establishment and management of investment portfolios and funds, such as the 50% stake of the $100m Al Madar Fund, recently stated to be generating excellent returns, and the $15m Al Mazaya Investment Portfolio, with returns expected in 2009.
Al Nafisi concluded his speech by confirming that Al Mazaya has numerous real estate and investment projects on the horizon.
Wednesday, October 22- 2008 @ 12:32 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.