Kuwait National Real Estate Company Posts Q2 Profit of 11.7 Million Dinars
The National Real Estate Company reported a net profit of KD 11.7 million during the second quarter of 2026, compared to a net loss of KD 66.5 million in the same period of 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 amounted to KD 0.8 million.
The second quarter of 2026 marks the first full quarterly financial period following the recognition of provisions and write-offs previously executed by the company, providing a clearer indicator 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 KD 42.2 million, equating to a loss per share of 21.2 fils, while total assets stood at KD 468 million as of June 30, 2026.
Alongside its ongoing efforts to optimize its investment portfolio, National Real Estate continued to implement internal restructuring initiatives during the first half of 2026, focusing on streamlining operations, enhancing organizational efficiency, and reinforcing cost discipline across the company. These initiatives aim to build a more flexible and efficient operational structure, improve decision-making effectiveness and resource allocation, and support the company’s ability to execute its strategic priorities and achieve sustainable long-term growth.
In this context, Vice Chairman and Chief Executive Officer Faisal Al-Eissa 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. We will continue to focus on building a more flexible and efficient business, while simultaneously optimizing our investment portfolio and directing capital toward opportunities that deliver higher returns and support sustainable long-term growth.”
National Real Estate continued its effective management of its regional portfolio by executing a series of strategic transactions aimed at unlocking asset value, enhancing financial flexibility, and redirecting capital toward higher-yield investment opportunities.
The company completed the transfer of its stake in Mediterranean Investments Holding for EUR 74 million, equivalent to approximately KD 26.5 million, resulting in the recognition of an amount of approximately KD 6.2 million in the income statement through the reclassification of reserves previously included in other comprehensive income, with no impact on total equity.
In the UAE, the company completed the sale of a 1,994-square-meter land plot on Al Reem Island for AED 52 million, equivalent to approximately KD 4.4 million, realizing a profit of nearly KD 1 million.
The company also signed a memorandum of understanding to sell two additional land plots totaling 13,001 square meters for AED 400 million, equivalent to approximately KD 33.5 million. The transaction is expected to yield a profit of approximately KD 8.9 million upon completion.
Commenting on these steps, Faisal 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 the reduction of debt levels and financial risks, returning capital to shareholders, and capitalizing on opportunities with higher return prospects. These initiatives are central to our efforts to build a more efficient and higher-quality asset base, thereby enhancing the company’s ability to deliver sustainable long-term value.”
In Egypt, Kuwait Al Wadi Al Nil for Urban Development, a subsidiary of Al Watania Al Amraniya, has entered into a partnership to develop a real estate project in the city of 6th of October on an area of approximately 243,474 square meters. The total cost of developing the project is estimated at around 35.5 million, while it is expected to generate revenues of nearly 42 million and a net profit of approximately 6.4 million at the subsidiary level. Al Watania Al Amraniya’s share, according to its ownership stake, amounts to 5.1 million dinars.
Sustainability continues to play a pivotal role in the company’s growth strategy, as it consistently integrates 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 create a positive and lasting impact on the communities in which it operates, while simultaneously enhancing long-term value for stakeholders.
