Eshraq Investments reports net profit of $10.45 million in FY 2021, maintaining growth momentum

Eshraq recorded an operating revenue of $7.13 million (AED 26.2 million) for FY 2021, marking an increase of 45 percent over the same period last year.

The strong operating revenue was driven by Eshraq’s leasing and hospitality businesses as performance returned to pre-pandemic levels.

The shareholding company’s Burj Daman Apartments and Nuran Marina Serviced Residences achieved occupancy rates of 100 percent and 93 percent respectively, on the back of proactive and strategic leasing efforts.

On the development front, Marina Rise, the company’s first mixed-use development on Reem Island, achieved 97 percent occupancy at the end of February 2022, bolstering the investment company’s recurring revenues and land bank monetisation strategy.

The firm is currently exploring further development opportunities of its other land plots in Reem Island, Abu Dhabi.

The company also recorded a gain of $12.5 million (AED 46.1 million) from its financial and technology investments, compared to a loss of $299,500 (AED 1.1 million) in 2020, driven by strong outperformance of the company’s equities and debt portfolio and a 44 percent year-over-year increase in dividend income.

The company continues to expand its portfolio of financial and technology assets and diversify its asset base.

Commenting on the results Eshraq’s chairman, Jassim Alseddiqi (above), said: “We are pleased with the strong profitability growth we achieved in fiscal year 2021. The recovery is driven by the disciplined execution of our growth strategy, which focuses on operational excellence and diversification.

“Eshraq’s strong results are a testament of the Company’s ability to navigate a changing environment while investing in future growth opportunities. We look forward to maintaining growth momentum through 2022, and monetising additional land plots in line with our successful completion of Marina Rise tower.”