Eshraq Investments has revealed its financial performance for the first half of the year, showing a significant improvement in Q2 2023. The company witnessed a remarkable upturn in its Total Operating Income, surging by 2,446.7% to AED 44.31M compared to a loss of AED 1.89M in Q2 2022.
Similarly, Eshraq’s Net Profit saw a substantial turnaround, going from a loss of AED 7.07M in Q2 2022 to a profit of AED 35.99M in Q2 2023, marking a 609.3% year-on-year increase.
During this period, Eshraq successfully sold 7 land plots, equivalent to 27% of its land bank’s book value, generating AED 208M in total sales, according to WAM.
The company’s strategy involves continuing its land sale program over the next 3 years, monetizing non-revenue generating land assets through sales or partnerships for development. Eshraq is actively seeking opportunities to generate cash flows from all its assets.
Eshraq’s commitment to shareholder value is evident through its ongoing share buyback initiative. In Q2 2023, the company bought back 108 million ordinary shares, resulting in a gain of AED 46.37M for shareholders due to the buyback at a discount to Eshraq’s book value.
The residential properties, Marina Rise and Nuran Marina hotel apartments, maintained high occupancy rates, with 95% and 94% average occupancy rates YTD respectively up to June 2023. The commercial operations generated AED 8.3M in gross profit during the first quarter.
Additionally, Eshraq concluded the sale of 58 apartment units in Burj Daman for AED 162.01M in cash in Q2 2023. This allowed the company to settle its outstanding mortgage and reinvest the proceeds in other opportunities.
