Seef Properties Reports Net Profit of BD 2.71 Million Attributable to The Parent For The Period Ended 30 June 2020

Seef Properties reported net profits and total comprehensive income attributable to the parent of BD 2.71 million for the six-month period ended 30 June 2020, compared to BD 4.72 million for the same period in the previous year, with a decrease of 42.63%. This decrease when compared to last year is mainly attributable to the repercussions of the COVID-19 pandemic, which include reduction of income due to the introduction of the Tenant Support Fund of BD 1 million, closure of family entertainment centres and decrease in hotel apartment occupancy rates.

Diluted earnings per share for the period ended 30 June 2020 amounted to 5.89 fils, compared to 10.26 fils for the same period in the previous year. Total equity attributable to the shareholders (after excluding the equity attributable to minority) for the period ended 30 June 2020, has decreased by 2.74% reaching BD 150.31 million, compared to BD 154.54 million last year.

The total assets for the period ended 30 June 2020, has increased by 0.59% reaching BD 175.35 million, compared to BD 174.32 million last year.

Commenting on the financial results, Seef Properties’ Chairman, Mr. Essa Mohamed Najibi, said, “Despite the challenges we experienced in the first half of this year, we have been able to take steady strides to achieve our objectives in accordance with our preset plans and strategies, mainly attaining additional value for our shareholders in the long term through the investment in the development of our operations to bolster growth sustainability and cope with the current and future circumstances. The Board of Directors had previously launched the Tenant Support Fund of BD 1 million, which is approximately 38% of the net profits declared, and initiated a transitional strategy for the redeployment of the Company’s resources to curtail the impact of the pandemic on its business model and to enable it to continue towards the future”.

Mr. Najibi further added, “Our financial results reflect the robust infrastructure of the Bahraini economy and its ability to withstand crises, owing to the vision set for this sector by the wise leadership over the previous years, and in particular, the support provided to the real estate development, retail, entertainment and hospitality fields, which are at the core of our Company’s operations.”

The Chairman added, “We would like to express our sincere appreciation and gratitude to His Majesty King Hamad bin Isa Al Khalifa, King of the Kingdom of Bahrain, His Royal Highness Prince Khalifa bin Salman Al Khalifa, the Prime Minister, and His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, for their wise directives throughout the crisis and rapid response to curb its repercussions. Such response has set the Kingdom of Bahrain as an international example in handling the pandemic due to the scale of the unprecedented measures taken, including but not limited to, the economic stimulus packages introduced by the Government encompassing Bahraini employees’ wage support in the private sector and exempting commercial establishments from utility bills, municipality and labour market fees, in addition to postponement of bank loan installments. We take great pride in being a contributing part of Team Bahrain.”

For his part, Seef Properties’ Chief Executive Officer, Mr. Ahmed Yusuf said, “The financial results reported in the first half of the year reflect the operational efficiency of Seef Properties amidst the current circumstances. This confirms the Company’s ability to rapidly adapt to the new challenges posed by the pandemic, while closely cooperating with its valued tenants, whose success is a priority, with all efforts exerted to this effect.  We shall also continue to promote a unique shopping experience for our valued visitors, while maintaining our firm commitment to the guidelines issued by the Coordination Committee to combat COVID-19 via the adoption of strict disinfection procedures at all our malls, in addition to introducing important changes in the Company’s operational procedures to comply with the announced precautionary measures.  Furthermore, we have implemented an advanced programme to increase cost efficiency to counteract the recent decline in the profits and revenues.”

He added, “The Company’s profitability has been impacted due to the sharp decline in consumer shopping trends experienced in local and global markets due to the pandemic, with the official precautionary measures resulting in closure of food courts, cinemas and family entertainment centres in our malls, in addition to a sizeable decline in hotel occupancy, which are all at the heart of the Company’s operations. However, we remain optimistic of achieving better results during the second half of this year, which shall coincide with the gradual alleviation of the precautionary measures and the return to ordinary life, all of which are indications we are currently noticing through the increase in footfall at our malls.”

Seef Properties B.S.C, one of the leading integrated real estate development companies in the Kingdom of Bahrain, was established in 1999 as a public company listed on Bahrain Bourse. The Company manages a large portfolio of assets, reinforcing its position as a distinguished commercial brand, backed by diverse investment projects across the Kingdom.