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Seef Properties reports net profit of BD 6.20 Million attributable to the partner for the financial year ended 31 Dec 2022

February 24, 2023
real estate

Seef Properties B.S.C. (Bahrain Bourse Trading Code: SEEF), recently announced its financial results for the financial year ended 31 December 2022, including the results of the fourth quarter of 2022.

The Company reported a net profit and comprehensive income of BD 0.99 million attributable to the parent during the fourth quarter of 2022, compared to BD 1.48 million for the same period of the previous year, with a decrease of 32.69%. The decrease is attributable to increase in marketing expenses commensurate with the 25th Anniversary celebrations of Seef Mall – Seef District and the reduction in rental income.

Diluted earnings per share attributable to the parent for the fourth quarter of 2022 amounted to 2.16 Fils, compared to 3.21 Fils for the same period the previous year. The Company’s operating profits stood at BD 2.86 million for the fourth quarter of 2022, compared to BD 2.92 million for the same period in the previous year, with a decrease of 1.90%.

The Company also reported net profit and comprehensive income attributable to the parent of BD 6.20 million for the year ended 31 December 2022, compared to BD 5.02 million for the same period last year, with an increase of 23.46%. This increase when compared to last year is mainly attributable to the full lifting of all COVID-19 restrictions and the opening of Yabeela, a family entertainment centre operated by the Company’s entertainment arm, Seef Entertainment, at Al Liwan, in addition to increasing revenues from the hospitality sector, with steady occupancy levels recorded for the hotel apartments.

Diluted earnings per share attributable to the parent amounted to 13.47 Fils for the year ended 31 December 2022, compared to 10.91 Fils for the same period of the previous year. Operating profits for the year ended 31 December 2022 reached BD 11.98 million, compared to BD 10.26 million for the same period of the previous year, with an increase of 16.69%.

The Company’s total equity (after excluding the equity attributable to minority) for the year ended 31 December 2022 increased by 2.22%, reaching BD 158.32 million, compared to BD 154.88 million for the same period of the previous year. Total assets for the year ended 31 December 2022 decreased by 0.29%, reaching BD 179.35 million, compared to BD 179.87 million for the same period of the previous year.

Based on the financial results, the Board of Directors is recommending to the General Assembly the distribution of cash dividends of 8% of share nominal value, equivalent to 8 Fils per share amounting to BD 3.68 million, as well as the allocation of BD 0.17 million towards the Company’s corporate social responsibility programme.

Commenting on the financial results, the Company’s Chairman, Mr. Essa Mohamed Najibi, stated, “We are delighted to announce the Company’s strong financial results in 2022, achieving a net profit of BD 6.20 million. The significant increase in revenues, coincided with the generation of a new source of income via the launch of Yabeela, the largest indoor family entertainment centre in the Kingdom of Bahrain located in Al Liwan, which constitutes a milestone in the Company’s financial and operational activity during the past year. The Company successfully maintained the momentum of its business model in the sectors of real estate development, hospitality, entertainment and management of commercial centres throughout 2022. We will proceed according to our defined strategy and remain at the forefront of the best performing national companies, with our diversified portfolio of projects which serves several governorates across the Kingdom.”

Mr. Najibi further elaborated, “The favourable business conditions witnessed in the post-COVID-19 era, during which the Kingdom of Bahrain has demonstrated its global excellence in overcoming the challenges of the pandemic, contributed significantly to the positive financial and operational performance achieved by the Company. We highly appreciate the royal directives of His Majesty King Hamad bin Isa Al Khalifa and the diligent follow-up of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, which led to the introduction of initiatives aimed at achieving comprehensive economic development, mainly the economic recovery plan and its five strategies that enabled national companies, such as ours, to move towards broader horizons of growth and prosperity and to contribute in supporting the national economy.”

The Chairman added, “We look forward with full confidence to a new year in which we will achieve an enhancement in profitability commensurate with the impact on private sector of the Kingdom’s notable economic recovery resulting from all national efforts and innovative government initiatives. We will continue our tireless efforts to strengthen our relationships with our partners in success, our valued shareholders and customers, to maintain our full understanding of their requirements and to ensure we are prepared to consistently achieve enhanced operational and financial results. We reiterate our commitment to the continuous development of our project portfolio and the growth and prosperity of the Company to the ultimate benefit of all parties involved.”

On his part, the Company’s Chief Executive Officer, Mr. Ahmed Yusuf, commented, “We are proud of the Company’s achievements during 2022, which translated into positive financial and operational results reflecting the flexibility, inclusiveness and diversity of the Company’s strategy, and the support of its portfolio with projects of excellence that serve the aspirations of shareholders and customers. Our efforts in the entertainment sector have experienced a quantum leap with the launch of Yabeela, which has recorded remarkable visitor rates since its opening. The Company is further expanding in the entertainment sector in the Kingdom and is currently considering a number of other entertainment activities, with its latest offering, Hawa entertainment centre, opening in January 2023 in Souq Al Baraha located in Diyar Al Muharraq.”

Mr. Yusuf continued, “The Company remains successful in maintaining an excellent occupancy rate across all its properties, in a clear reflection of the recovery witnessed by the local market during the past year. Our commercial centres also witnessed a noticeable increase in the number of shoppers and visitors from local citizens and residents, included citizens of the Kingdom of Saudi Arabia and the rest of the GCC countries. Such centres continue to attract more customers thanks to the variety of the shopping, hospitality and entertainment options they offer.”

Mr. Yusuf further explained, “The recovery is not limited to the entertainment and management of real estate sectors, but also extends to the hospitality sector. During 2022, a noticeable increase in the occupancy rates of Fraser Suites was recorded , coinciding with the recovery of the tourism sector and the increase in the number of incoming tourists and tourism related expenditure. Furthermore, we have continued to provide real estate management services during last year, and the Company is considering a number of opportunities to expand in this field. The Company will further continue to organise events to improve the shopping experience in its malls and marketing campaigns such as the “Shop and Win” campaign, along with other recreational activities.”

Speaking on the latest project Al Liwan in Al Hamalah, Mr. Yusuf added, “During last year, Al Liwan recorded remarkable success in terms of occupancy rates encompassing several prestigious brands such as Danube Supermarket from the Kingdom of Saudi Arabia, in addition to the opening of Yabeela entertainment centre, which is considered the largest of its kind in the Kingdom. Al Liwan visitors will also soon witness the opening of more distinctive brands during the upcoming year. We are pleased to confirm that Al Liwan has become a favourite destination for many citizens, residents and Gulf nationals. We are also proud that Al Liwan won the award for the best engineering design for a mixed-use project in the Kingdom of Bahrain for the second consecutive year, as part of the Arabian Property Awards (Africa and Arabia) 2022-2023, which was awarded by the International Organisation for Real Estate Awards in the United Kingdom, in a clear testament to the distinctiveness of the project with its diverse and modern facilities within a setting that is both environmentally friendly and is ideal for families.