Kuwait National Real Estate Company Records 11.7 Million Dinars in Three Months

The National Real Estate Company announced today that it achieved a net profit of 11.7 million dinars during the second quarter of 2026, compared to a net loss of 66.5 million dinars during the same period in 2025. Earnings per share stood at 5.9 fils, versus a loss of 33.4 fils in the second quarter of the previous year, while operating revenues recorded 0.8 million dinars.

In detail, the second quarter of 2026 marks the first full quarterly financial period following the recognition of provisions and write-offs previously undertaken by the company, providing a clearer indication of its actual operational performance after absorbing the impact of these non-recurring items.

For the first half of 2026, the company recorded a net loss of 42.2 million dinars, equating to a loss per share of 21.2 fils, while total assets stood at 468 million dinars as of June 30, 2026.

Alongside its ongoing efforts to enhance its investment portfolio, the National Real Estate Company continued to implement internal restructuring initiatives during the first half of 2026, focusing on streamlining operations, strengthening organizational efficiency, and reinforcing cost discipline across the company.

These initiatives aim to build a more flexible and efficient operational structure, enhance decision-making effectiveness and resource allocation, thereby supporting the company’s ability to execute its strategic priorities and achieve sustainable long-term growth.

In this context, Faisal Juma Sultan Al Eissa, Vice Chairman and Chief Executive Officer of the National Real Estate Company, stated: “The second quarter of 2026 represents a significant step forward for the company, as it is the first full quarter following the recognition of previous provisions and write-offs. The return to profitability more clearly reflects our actual operational performance and the progress we are making in enhancing operational efficiency and reinforcing cost discipline.”

Al Eissa added: “We will continue to focus on building a more resilient and efficient business, while simultaneously improving our investment portfolio and directing capital toward opportunities that deliver higher returns and support sustainable long-term growth.”

The National Real Estate Company continued its effective management of its regional portfolio by executing a series of strategic transactions aimed at unlocking asset value, strengthening financial flexibility, and redirecting capital toward higher-yield investment opportunities.

The company completed the transfer of its stake in Mediterranean Investments Holding for 74 million euros, equivalent to approximately 26.5 million dinars, resulting in the recognition of an amount of approximately 6.2 million dinars in the income statement through the reclassification of reserves previously included in other comprehensive income, with no impact on total equity.

In the United Arab Emirates, the company completed the sale of a 1.994-square-meter plot of land on Al Reem Island for 52 million UAE dirhams, equivalent to approximately 4.4 million dinars, realizing a profit of nearly 1 million dinars.

The company also signed a memorandum of understanding to sell two additional plots of land with a total area of approximately 13,001 square meters for 400 million UAE dirhams, equivalent to approximately 33.5 million dinars. The transaction is expected to yield a profit of approximately 8.9 million dinars upon completion.

Commenting on these steps, Mr. Faisal Jamil Sultan Al-Eissa added: “We have taken decisive steps to liquidate non-core assets, most notably the Al Reem Island transactions and the transfer of our stake in Mediterranean Investments Holding. We are redirecting capital to support debt reduction and lower financial risks, returning capital to shareholders, and capitalizing on opportunities with higher return prospects. These initiatives are central to our efforts in building a more efficient and higher-quality asset base, thereby enhancing the company’s ability to deliver sustainable long-term value.”

In the Arab Republic of Egypt, Kuwait Nile City Development Company, a subsidiary of the National Real Estate Company, entered into a partnership to develop a real estate project in the Sixth of October City, covering an area of approximately 243,474 square meters. The total estimated cost for project development is around 35.5 million dinars, with projected revenues nearing 42 million Kuwaiti dinars and a net profit of approximately 6.4 million dinars at the subsidiary level. The National Real Estate Company’s share, based on its ownership stake, amounts to about 5.1 million dinars.

This project aligns with the company’s strategy to optimize its asset base and redirect capital toward promising development opportunities, thereby contributing to enhanced returns and the creation of sustainable long-term value.

Sustainability continues to play a pivotal role in the National Real Estate Company’s growth strategy. The company remains committed to integrating responsible practices across its various operations, from minimizing environmental impact to promoting social inclusion and implementing robust governance frameworks. The company’s initiatives in the areas of environment, society, and governance aim to generate a positive and lasting impact on the communities in which it operates, while simultaneously enhancing long-term value for stakeholders.