Eshraq Investments has announced its financial results for the first quarter of 2021, logging in an operating profit of Dh10.26 million in the first quarter of 2021, a considerable turnaround compared with the first quarter of 2020.
Despite the ongoing challenges caused by the pandemic, Eshraq achieved a gain on investments of Dh7.62 million. This reflects the benefits of the board's diversification strategy implemented in early 2019, and the gains from its investments in financial and technology assets in particular. Meanwhile, Eshraq's leasing and hospitality businesses maintained their above-average performance, achieving occupancy rates of 98 per cent and 97 per cent, respectively, due to the company's proactive and agile leasing strategy.
As part of Eshraq's optimisation efforts, the company also reduced direct and general and administrative costs by 19 per cent and 16 per cent, respectively.
On the development front, the company's maiden development project Marina Rise at Reem Island is on schedule for completion in the second quarter of 2021 and the company is coordinating with various authorities for the formalities associated with completion.
Jassim Alseddiqi, Eshraq's chairman, said: "Our shareholders recently recognised the benefits of our strategy to transform and diversify Eshraq's investment portfolio away from real estate investments by renewing our mandate for the next three years at the AGM. I am pleased to be able to report that our Q1 financial results reflect the progress we are making in creating value from a more diversified portfolio with investment gains as well as strong growth in our cash profits."
"We look forward to the delivery of the soon-to-be-completed Marina Rise development in Reem Island, which will not only demonstrate the technical excellence of the team but will also be a step towards monetising our land bank and improving our bottom line," he said.