National Investments Company maintains dividends distribution to its shareholder
June 02, 2020
National Investments Company (NIC) managed to maintain the distribution of dividends to its shareholders in its commercial real estate investments in UK and USA, despite the global economic conditions associated with the COVID-19.
The Outstanding performance of NIC management of its investments in COVID-19 pandemic has reflected the success of the Executive Management in adopting effective and prudent strategies.
Our conservative policy to manage all sectors applies carefully studied and approved strategic plans
Mr. Fahad Abdulrahman Al-Mukhaizim, CEO of NIC stated that the Company is constantly striving to protect the interests of its clients at all levels, especially in times of crisis.
Since the outbreak of COVID-19, NIC has formed a crisis management team composed of the best competencies in the Company. The team has followed all investments of the company and its clients.
Al-Mukhaizim stated that NIC places top priority to intensifying communication with investment managers, especially in international real estate investments, which the company has sought to acquire over the past three years. One of the key factors for the acquisition was the company leasing the commercial property in terms of its financial solvency and the type of activity in which it operates, as well as the companys credit rating, which helps it face financial and operational difficulties.
Al-Mukhaizim added that NIC has two major international real estate projects:
The first project is the real estate in Manchester (UK), which is leased to Tesco, one of the giant and long-standing companies specializing in the retail sector. The acquisition deal was completed for a total value of £ 44.5 million with an annual return of 9% distributed on a quarterly basis, where the subscription for the offered shares was covered by 4 folds, which gives a clear indication of the investors confidence in NIC and the excellence of the real estate product, where a partnership was made with Altom Capital, one of the largest real estate companies in UK with many distinctive projects.
The other project is a commercial real estate project located in Pennsylvania, (USA). It is leased to Vanguard Group, the global asset management giant, to be utilized as one of the main headquarters of the company. The deal was concluded for a total value of $ 185 million, with an average annual return of approximately 8.2% over the investment period.
It is worth noting that NIC deposited the entire quarterly return for 2020 of the two properties in the accounts of its clients, although there are certain laws in the countries where the properties are located that grant more flexibility to the tenants to adjourn the payment of rent payments.
However, since the leasing companies have a solid financial base with continued cash flow of their operational activities, which, as we mentioned earlier, was one of the most important factors targeted by NIC when it selects its investments, based on its care for the interests of its clients, which has now paid off.
Al-Mukhaizim affirmed that NIC concluded many real estate acquisitions over the past years in USA and UK in various commercial, office and residential sectors. NIC also operates according to a clear strategy that relies on careful selection of opportunities that have directly contributed to achieving historic successes in all of its managed operations in the market.
Al-Mukhaizim said that NIC has an investment team with a high level of professionalism managed over the last period to make a track record of achievements in terms of investment opportunities presented to clients, whether through the asset management sector, Investment Banking Sector, or the local or international real estate sector.
In conclusion, Al-Mukhaizim expressed his sincere wishes, praying to Allah Almighty to protect and safeguard Kuwait and its people from all harm, and to raise this scourge soon, stressing that NIC spares no effort to preserve the public interest, extending his special appreciation to NIC clients for their precious confidence they place in the company, wishing to continue the bonds of cooperation to protect clients interests.