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Backed by sound financial practices and solid strategy, Eshraq Investments’ 2022 net profit grows more than 15 times to AED589.79 million (US$161 million) from AED38.43 million in 2021 .
The company’s total investment income amounted to AED 546.44 million, compared to last year’s net income of AED 46.09 million, mainly due to gains from the acquisition of Goldilocks and growth in investment performance under Goldilocks.
The company’s board of directors recommends a cash bonus of 2 fils per share. The dividend proposal will be submitted to shareholders for approval at the company’s upcoming general meeting.
liquidity provider
The Board also approved the appointment of liquidity providers for the Company’s ADX-listed shares and authorized the Executive Committee of the Board to execute the appointment.
Eshraq has repurchased an additional 37 million shares for a total value of AED 18.56 million as of January 31, 2023, in line with the Board’s commitment to enhance shareholder returns. Share repurchases benefited shareholders by AED 26.1 million accounts for repurchasing shares at a price below Eshraq’s book value. The Board of Directors agreed to continue the share repurchase program to meet the target of repurchasing 84.6 million shares (3% of capital) in the first year of the repurchase program beginning in August 2022.
Financial Performance
The company reported its highest-ever annual net revenue of AED 589.79 million, a 27-fold increase year-on-year. This was mainly due to the AED 436.58 million gain to Eshraq shareholders for the acquisition of the Goldilocks Fund and the subsequent increase in Goldilocks’ investment performance on Eshraq’s balance sheet, resulting in a AED 564.97 million gain as of December 31, 2022.
Eshraq’s total operating income in 2022 is AED 570.68 million, compared to AED 67.34 million in 2021. The increase in operating income was due to higher operating income and portfolio gains.
Land Monetization Program
Eshraq has also made rapid progress in monetizing its land bank, having so far signed sales and purchase agreements for seven land parcels, representing 28% of the book value of its existing land bank, for a total sale consideration of AED 208 million. The sale further improves liquidity and focuses on profit-generating financial assets, as well as recurring income from the corporate leasing and hotel businesses. The land sale at a competitive valuation highlights the company’s potential to monetize its land bank through deals that will benefit Eshraq shareholders.
Commenting on the strong performance, Eshraq Chairman Jassim Alseddiqi said: “We are pleased to announce exceptional growth in profitability and significant progress towards solid revenue growth in FY2022. Our strong performance reflects our solid financial practices, solid strategy , and the ability to adapt in the face of changing market conditions. Additionally, our land monetization program has already had a positive impact on Eshraq’s profitability, and we are excited about the opportunities it presents for the future. Most importantly, we We remain steadfast in our mission to drive growth and enhance shareholder value through our long-term strategy.”
number of initiatives
Alseddiqi added: “We are working hard to improve shareholder returns and in this regard we have taken several initiatives at this meeting. We have proposed a cash dividend of 2 fils/share for shareholder approval at the AGM, and agreed to continue our share repurchase program. We also approved the appointment of a liquidity provider. We believe these efforts will help us strengthen our shareholder base and increase interest from long-term investors.” — trade arab news agency
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