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Book value per share of AED 0.92, consisting entirely of tangible real estate and financial assets
Eshraq Properties owns Nuran Serviced Residences in Dubai Marina. It purchased assets from Emaar. – file photo
Eshraq Investments released its results for the period ended September 30, 2022 on Friday. The company reported its highest-ever quarterly net income of AED475 million, a 27-fold increase year-on-year.
Eshraq has a book value of AED 0.9238 per share at the end of the third quarter of 2022. Book value fully includes tangible assets such as the company’s real estate assets and financial investments. Eshraq has made rapid progress in monetizing its land bank, successfully selling three parcels of about 27% of the total gross floor area for AED160 million in the past two months. The sales further boosted liquidity and added income-generating assets.
Real estate investment income growth
Eshraq reported total real estate operating income of AED29.5 million for the period ended September 30, 2022, driven by Eshraq’s leasing and hospitality businesses. Burj Daman Apartments, Nuran Marina Serviced Residences and Marina Rise in Eshraq on Reem Island achieved occupancy rates of 100%, 89% and 93% respectively, and Nuran Marina’s average house price increased by 50% year-on-year (ARR) – all thanks to positive company strategic leasing work.
Jassim Alseddiqi, Chairman of Eshraq.photos provided
Jassim Alseddiqi, Chairman of Eshraq, said: “On behalf of the Board, I would like to commend the management team for their record-setting third quarter. Key initiatives – whether completing the Goldilocks acquisition, or implementing a share buyback program or land monetization program – are being well on track and reflected in improved profitability and shareholder returns. We are confident that we can maintain and build on this momentum to strengthen Eshraq’s financial performance and improve operational efficiency – all with the goal of creating something that will bring benefits to our shareholders long-term value.”
Equity reduction and impact following the acquisition of Goldilocks
Following SCA approval, Eshraq implemented a capital reduction to offset all accumulated losses, followed by a capital increase, resulting in the company’s total issued capital of AED2.82 billion as of the third quarter of 2022.
The company also completed the acquisition of Goldilocks Fund through the issuance of 1.385 billion new shares to expand and diversify Eshraq’s financial investments beyond real estate and hospitality. Eshraq also subscribed for additional Goldilocks shares by transferring certain of its financial assets, investments and liabilities in exchange for additional Goldilocks Class A shares. After the transaction was completed, Goldilocks became the company’s core asset,
The asset mix is ​​expected to provide greater stability and mitigate market volatility risks, as well as enhance returns.
In line with the board’s commitment to enhance shareholder returns, Eshraq has repurchased an additional 14.4 million ordinary shares for a total value of AED7.47 million until October 31, 2022, after obtaining the necessary approval from the SCA for its share repurchase program.
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