Seef Properties B.S.C. (Bahrain Bourse Trading Code: SEEF) announced its financial results for the first quarter ended 31 March 2021. The Company reported a net profit and comprehensive income attributable to the parent of BD 1.26 million during the first quarter of 2021, compared to BD 1.81 million for the same quarter of last year, with a decrease of 30.21%. The decrease is attributable to the continuing repercussions of the outbreak of the COVID-19 pandemic on the entertainment, hospitality and retail sectors, in addition to the pandemic’s adverse impact on cinema theaters and children’s entertainment centres, which remain closed for over a year.
Diluted earnings per share attributable to the parent for the first quarter of 2021 amounted to 2.74 fils, compared to 3.93 fils for the same quarter of the previous year. The Company’s operating profit stood at BD 2.65 million during the first quarter of 2021, compared to BD 3.43 million for the same quarter of last year, with a decrease of 22.89%. Revenues decreased in the first quarter of 2021 by 23.30% to reach BD 3.08 million, compared to BD 4.01 million for the corresponding quarter of last year, mainly due to the outbreak of the COVID-19 pandemic, which continues to affect the Kingdom’s economic landscape, including the Company’s operations and activities.
The Company’s total equity (after excluding the equity attributable to minority) for the first quarter of 2021 decreased by 0.68% to reach BD 151.13 million, compared to BD 152.17 million for the financial year ended 31 December 2020. The total assets for the period ended 31 March 2021 increased by 1.63% to reach BD 176.10 million, compared to BD 173.28 million for the financial year ended 31 December 2020.
Commenting on the financial results, Seef Properties Chairman Mr. Essa Najibi said, “Despite the continuing repercussions of the COVID-19 pandemic on all economic sectors, Seef Properties has been able to overcome various challenges to maintain the momentum of its profitability and the stability of its financial results, such ability being attributable to the flexibility of its business model and the diversity of its investment portfolio enabling it to implement its strategic objectives and strengthen its position as one of the leading and most innovative real estate development companies in the Kingdom of Bahrain. In this context, we would like to express our gratitude to the wise leadership and the esteemed Government for the sound measures and decisions taken to contribute to the mitigation of the pandemic’s impact on the national economy and companies.”
Mr. Najibi added, “The Company continuously aspires to achieve optimum financial, administrative and operational performance, relying on carefully considered plans, best practices and innovative solutions to maintain the value of its investments while also diversifying its sources of income in its main business sectors to serve the interests of its partners, shareholders and customers alike. We are optimistic about life gradually returning to normal in the upcoming months with all credit due to the unwavering efforts of the National Taskforce to Combat COVID-19, the remarkable demand for taking the vaccine and the recent recommendations of the National Medical Team to recommence operations in cinemas and family entertainment centres for vaccinated and/or recovered individuals, starting from the first days of Eid Al Fitr. Such recommencement of operations is likely to have significant impact in reviving the interest in commercial malls and would directly contribute to the revival of other related economic sectors.”
For his part, Seef Properties Chief Executive Officer, Mr. Ahmed Yusuf stated, “We are welcoming the year 2021 with a stable operational performance, which reflects the Company’s ability to adapt to all variables and unforeseen circumstances. Our financial performance was not affected in the first quarter of last year as the onset of the virus only commenced in March. Nonetheless, operations in the first quarter of this year have been affected by the pandemic, which is seen in the percentage in decline. Despite the pandemic’s repercussions on all vital sectors, Seef Mall – Seef District continues its leadership as a unique shopping destination in the Kingdom, with a high occupancy rate currently reaching 88%. The Mall also continues to improve the shopping experience for its visitors to maintain its position as an ideal family shopping destination in the Kingdom and the GCC region. This is bolstered by our direction to establish more strategic partnerships with renowned international brands that enjoy a prominent reputation in commercial markets.”
Mr. Yusuf added: “The entertainment sector was the most affected during the first quarter of this year due to continued closures. This in turn impacted the Company’s operational performance, but we are hopeful that it will significantly improve with the reopening of cinemas and Magic Island in Seef Mall – Seef District and Seef Mall – Muharraq, and Jumpoline trampoline Park in Seef Mall – Isa Town on the first day of Eid Al Fitr. These steps would certainly contribute to achieving better financial and operational results during the current year and further reinforce the Company’s position in the entertainment and hospitality sectors locally. We reiterate our commitment to applying all precautionary and preventive measures related to social distancing and sterilisation in our entertainment centres and cinemas operating from our premises in compliance with the relevant government decisions and recommendations of the National Medical Team.”
Commenting on the latest developments of the multi-purpose Al Liwan Project in Hamala area, the latest project in Seef Properties’ investment portfolio, the Chief Executive Officer confirmed that the project is expected to officially open by the end of this year, noting that 60% of the available retail outlets have been fully leased, and work is currently underway to sign more leasing agreements with prominent international brands.
Mr. Yusuf further noted that works are on schedule for the installation of games and rides in the new entertainment centre in Al Liwan, which will be the largest of its kind in the Kingdom of Bahrain. He also indicated that Al Liwan will soon turn into the preferred destination for citizens, residents and tourists in the Northern Governorate, as it provides a wide array of commercial, residential and entertainment options, placing it at the forefront of real estate development projects in the Kingdom.
Note: The press release is available on Bahrain Bourse website on www.bahrainbourse.com