AGM statement: A business focused on growth
Manazel Real Estate (”Manazel”), a leading UAE developer, hosted its Annual General Meeting (AGM) on 24 April 2016 to review the company’s financial performance for 2015 and provide an outlook for the year ahead.
Manazel delivered strong growth in earnings with a 29% growth in net profit to AED 195 million (2014: AED 152 million) driven by the benefits of a successful restructuring strategy initiated in 2014 and an enhanced sales and marketing initiative guided by an experienced management team. Revenues for the period were stable at AED 740 million (2014: AED 739 million), driven in part by strong demand for Manazel’s Al Reef 2 villas project and growth in recurring income, which the Company attributes to its portfolio of mall and retail areas, district cooling plants, and commercial and residential properties. The results reinforce Manazel’s long-term strategy of diversifying revenue streams in order to generate recurring income and balance the cyclical nature of residential real estate.
The Company’s total assets increased to AED 4,191 million (2014: AED 3,626 million) and the shareholder’s equity increased 29% to AED 2,602 million (2014: AED 2,015 million) resulting in a book value of AED 1.04 per share (2014: AED 0.81) as at 31 December 2015.
At the AGM, all resolutions were duly passed by the shareholders who voted in favor of a 4% bonus share distribution for the 2015 financial year. The distribution of the bonus shares will be subject to all regulatory approvals.
Manazel’s Chairman Mohamed M. Al Qubaisi said:
“This was a pivotal year for Manazel Real Estate as we advanced our commitment to the middle-income segment in the UAE with housing and retail offerings. As a pioneer in the middle-income segment, we are uniquely positioned to support this underserved sector and to support the government of Abu Dhabi as it strives to make affordable housing more abundant in the years to come. In 2016, we will continue to invest in our business to capture new opportunities in and outside the UAE.”
Manazel’s Chief Executive Officer, Hassan Fahmi, said:
“Manazel Real Estate has achieved solid growth in 2015 through its business strategy of diversifying its sources of income by investing in other sectors alongside the real estate sector. These measured plans generated additional revenue for the company and created value for our shareholders. During 2016, Manazel Real Estate will continue to follow its blueprint of diversification and leverage its balance sheet to grow its brand across the region.”