Board of Directors Report
Dear shareholders of
Injazzat Real Estate Development Company
On behalf of myself and fellow members of the Board of Directors, I am pleased to welcome you all to the annual general assembly meeting of Injazzat Real Estate Development Company (K.S.C.P), and to present to you the annual report and the financial statements for the fiscal year ending December 31st, 2015.
Despite the many geopolitical challenges that our region is facing, especially during the second half of 2015, the company managed to maintain its leading position among real estate companies in the State of Kuwait due to its distinguished financial performance, its quality of assets, and its compliance with its strategy based on reinforcing and developing value of its real estate assets.
The company's management are currently working to ensure the company's commitment to the provisions, laws and the implementation of regulations and instructions issued by the Capital Markets Authority (CMA), including the corporate governance requirements, which provides a balanced structure for the Board of Directors by including non-Executives and independent members.
The most notable achievements on the global level during 2015, was acquiring a new investment opportunity in the United Kingdom real estate market specifically in London, this is through purchasing a residential building with the aim of renovating it, and selling it as individual units. In addition, the company also invested in an opportunity in the form of a residential building in one of the high- class quarters in Paris. The building will be divided in to units that will be offered for sale.
On the regional level, the company started the development of Al-Yal project situated in Al –Seef District of Manama. The project comprises of two residential buildings with a total built up area of about 90,000 square meters. The company also increased its ownership percentage in First Real Estate Company in the Kingdom of Bahrain due to its promising investments and rewarding revenues in the forthcoming years.
In the United Arab Emirates, the Jebel Ali Residential Project was completed. This project is assigned as a labor accommodation. Work is still underway at Al Sanbouk Project, Jebel Ali Area, which is expected to be completed in the second half of 2016.
The company also began developing a residential and commercial tower at Al Jadaf area, Dubai, with a total built up area of about 21,000 square meters.
As for the financial position, the company’s assets scored KD 97.6 million as per the year ending 2015 in the end of 2015 (KD 105.4 million in 2014), a decline by 8%, affected by the repayment of KD 9 million loan to a local bank. Shareholders equity rose to KD 57 million compared to (KD 55.5 million in 2014), an increase of 3%.
The financial performance during 2015 was positive. Total revenues scored KD 10.3 million in the end of 2015 (KD 6.3 million in 2014) achieving a double digit figure in growth rate and profits, an increase by 63% from 2014. Expenditures and other operation costs and provisions scored KD 6.9 million in 2015 (KD4.8 million in 2014), an increase by 44%. Consequently, the company's net profits increased to KD 3.1 million in 2015 (KD 1.5 million in 2014), 103% growth rate.
As a result of these excellent achievements, the Board of Directors recommended distributing cash dividends of 5 fils per share (5%) to the shareholders registered on the date of convening the general assembly meeting. This recommendation is of course subject to the approval of the general assembly as well as the competent authorities.
Ladies and gentlemen, Injazzat Company shareholders,
In the end, I would like to extend my sincerest appreciation and thanks to the members of the Board of Directors, the Executive Committee, and the Executive Management and to all company personnel for their effective contributions and tangible efforts. Likewise, I would like to extend on behalf of the Board of Directors and myself and all company employees our great thanks and gratitude to our dear shareholders for their valuable trust and continued support which in turn forms a great stimulus for us, driving for more remarkable accomplishments.
Faisal Fahad Al Shaye
Chairman of the Board