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Shareholders endorse company’s financial statements for 2008
Kuwait, April 30th, 2009 - First Qatar Real Estate Development Co., a leading real estate company in the Middle East, today held its General Assembly meeting at the Ministry of Commerce & Industry in the State of Kuwait to endorse the company’s financial statements for the year 2008. The meeting which was a notable success presented an opportunity to record the company’s high asset growth in its third year of operations and underline its strategy for 2009.
Although with the global financial and economic crisis, which followed by the devaluation of the assets invested especially in the last quarter of 2008, First Qatar managed to show growth in their real estate investment portfolio fuelled by the upsurge in property sales and land value appreciation, First Qatar has recorded profits of KD 3,764,594 in 2008, compared to a profit of KD 4,064,415 in 2007, with earnings per share amounting to fils 7.5 in 2008 against earnings per share of fils 8.1 in 2007. Total Company assets amounted to KD 99,046,521 in 2008 compared to KD 69,096,677 in 2007, while total equity reached KD 62,128,899 in 2008, against KD 58,364,305 in 2007. The company showed excellent performance in the first nine months of 2008, but that precautionary measures had to be taken to protect company assets and project values in the fourth quarter.
The rise of real estate prices was led by a successful expansion strategy that was initiated in 2007. However, in 2008 the company acquired three plots of lands in Oman worth $30 million and two well located, in excellent condition and substantial recurring revenue properties in Kuwait worth over $17 million in addition to the company’s $350 million investment in The Pearl-Qatar Island.
Endorsing First Qatar’s substantial growth over the past years, Fahad K. Al-Ghunaim, First Qatar’s Chairman and CEO said, “Our first three years of operations have been a remarkable success. Backed by strong brand equity, sound strategic management and a highly qualified human capital, First Qatar has managed to mitigate the risks and become a leading player in the local real estate market in a short period of time by focusing on providing its customers with quality products and full real estate services upon completion.
On the possibility of converting First Qatar into a public joint stock company and listing its shares on the Kuwait Stock Exchange (KSE), Al Ghunaim said, “Our shareholders equity reached 124.3% of the company’s capital while annual net profits climbed by 7.53% in 2008. We have achieved the legal and financial requirements to become listed in the official stock exchange market which is our next step”
The global financial crisis and the real estate recession has severely affected Kuwait, Qatar and Oman markets, and has rendered obtaining new credit facilities for proposed projects extremely difficult for the current year. However, First Qatar’s strategy in 2009 will continue to focus on maximizing its shareholders wealth and the board of directors has recommended not allocating dividends from 2008’s profits to the company’s shareholders, following certain policies that the company has adopted to protect itself from current market fluctuations.
Our main goal for the upcoming years is to strengthen our portfolio locally as well as in the international region,” stressed Al Ghunaim.
“We have carved our niche in the market by offering the highest standards of quality, profitability and customer service excellence and we are using our professional expertise to invest wisely and expediently,
We will work to preserves our cash positions, minimize debt and at all times remain faithful to the fiduciary duty entrusted to us by our shareholders.” Said Al Ghunaim.
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