- NIC achieved KD 15.056 million profits at 18.87 fils per share in Q2 2021.
- Outstanding growth in the Company’s total assets approximating KD 239.514 million compared to KD 208.190 million in Q2 2020, with 15.05% growth in total assets.
- In Q2 2021, assets under management amounted to around KD 1.1 billion.
- NIC maintained distributable profits and reserves amounting to KD 38.903 million, constituting 48.76% of the capital, despite the economic conditions prevailing the region.
- Exceptional hike in other comprehensive income in Q2 2021, to KD 7.935 million with outstanding growth of 402.17%. Other comprehensive losses in the same period 2020 amounted to KD 2.626 million.
- In Q2 2021, total shareholders’ equity amounted to KD 189.218 million. Despite the challenges the region is still experiencing and their repercussions on all markets, NIC distributed cash dividends to its shareholders of approximately KD 9 million for the year ended 31/12/2020.
- In Q2 2021, the Management, Brokerage and Advisory fee income recorded a growth of 54.2% reaching KD 3.610 million compared to KD 2.341 million for the relevant period of 2020.
- NIC started 2021 with a strong pipeline of M&A buy-side mandates, sell-side mandates, restructuring and various advisory mandates. A new investment in Europe to develop logistics warehouses in Italy and Germany with annual returns of 8% and 8.5% respectively, returns distributed on a quarterly basis, and a direct investment opportunity in USA managed by G Squared, with 30% IRR over the fund term.
- NIC maintained distributions of its clients sharing in private equity projects and commercial real estate investments in UK and USA, increasing the annual current return
- Outstanding performance in Q2 2021 reflects the success of the Company’s Executive Management in adopting effective, accurate and precise strategies
- The three awards NIC received in H1 2021 are a translation of the collective efforts made by the company
- Intensive strategic efforts in CSR throughout the year, focusing on meeting the needs and requirements of the community.
National Investments Company (NIC) approved the consolidated financial statements for the second quarter ending on June 30, 2021, including a detailed analytical presentation on the company’s performance and financial position in Q2 2021.
Mr. Hamad Al-Ameeri, Chairman of NIC said in a press release that the Company achieved good profits in Q2 2021 of KD 15.056 million at 18.87 fils per share compared to a loss of KD 11.866 million at 14.87 file loss per share in the same period of 2020.
In Q2 2021, NIC reported an excellent growth in the company’s total assets of 15.05%, approximately KD 239.514 million, compared to KD 208.190 for the same period last year.
Al-Ameeri said that NIC total assets under management (AUM) in fiduciary capacity amounted to KD 1.1 billion at the end of Q2 2021. Despite the challenges and fluctuations that the region is still experiencing, NIC maintained profits and distributable reserves of KD 38.903 million, constituting 48.76% of the capital. Other comprehensive income also achieved an exceptional hike in Q2 2021, reaching KD 7.935 million, with an outstanding growth of 402.17%. Other comprehensive losses in the same period last year amounted to KD 2.626 million.
Al-Ameeri also highlighted the total shareholders’ equity of the parent company, which amounted to KD 189.218 million at the end of Q2 2021, compared to KD 159.347 million at the end of Q2 2020, taking into consideration that the company distributed cash dividends to shareholders for the year end 31/12/2020 approximating KD 9 million.
Al-Ameeri also shed light on the outstanding hike of 54.2% in the Management, Brokerage and Advisory fee income that reached KD 3.610 million compared to KD 2.341 million in the relevant period of 2020.
Al-Ameeri pointed that the reassuring financial results were a reflection of a long-term strategy adopted by the company’s BoD, and implemented by the Executive Management with high professionalism.
On the same front, Mr. Fahad Al-Mukhaizim, the Chief Executive Officer of NIC said that in Q2 2021, the Company achieved positive results and captured many new investments in the infrastructure, credit, information technology and private equity sectors, noting that NIC started the year 2021 with a strong pipeline of mandates, including a number of M&A buy-side mandates, sell-side mandates, restructuring as well as general advisory mandates despite the challenges and repercussions the region and the world are still experiencing.
Al-Mukhaizim said that NIC maintained the distributions of its customers sharing in its commercial real estate investments in UK and USA, increasing the annual current return from 9% to 10% annually in its real estate investment located in Manchester, UK.
Al-Mukhaizim also said that NIC is in the course of making investments with a group of clients in two projects to develop logistic warehouses in Europe, specifically Italy and Germany, whereby the first project, a warehouse located in Italy, was leased to FedEx. The second project in Germany is in its final stages of signing a leasing contract with one of the major companies in the logistics sector. The two projects are expected to achieve an annual return of 8.0% and 8.5% respectively, all of which will be distributed on a quarterly basis. Subscription to the said projects was covered several times and the capital offered for subscription was covered.
Moreover, NIC recently participated with its clients in a direct investment opportunity in the venture capital fund managed by G Squared, which is expected to achieve 30% IRR over the fund term. NIC also acted as a listing advisor for Al Safat Investment Company.
NIC has recently deposited Q1 2021 current return in the accounts of its clients in continuation of the quarterly returns that did not cease in the fiscal year 2020 for the two international properties, UK properties in Manchester leased to Tesco and the commercial real estate project in the USA in Pennsylvania leased to Vanguard Group.
Al-Mukhaizim also said that NIC has proven its leading position in the real estate sector in Kuwait, the region and the world. The Real Estate Investment Sector managed to market its properties and increase their occupancy rates, in addition to attracting new clients and portfolios during the beginning of 2021, most notably attracting two real estates to the third party properties management portfolio in Salmiya and Jabriya, and exited an investment property in Mahboula.
Compared to the same period in 2020, revenues increased by 15%. The number of rental units increased by 37%, which includes more than 1,800 various rental units, and occupancy rates increased by 12%. The sector continues to increase the rate of collection and revenues of the real estate portfolio, managed for third parties. The sector also focuses on preparing and developing Al-Wataniya Resort at Khiran to meet the increasing demand for vacationers in chalets during this period. The sector also managed to achieve full occupancy rates in the resort, reaching the highest level in Q2 2021, due to the well-thought-out marketing plans and market demand.
Al-Mukhaizim emphasized that NIC has made many real estate acquisitions over the past years in USA and UK in various commercial and residential sectors. The company also operates according to a clear strategy that depends on careful selection of opportunities, which directly contributed to achieving historical successes in all its managed mandates in the market.
Al-Mukhaizim added that NIC has intensified its strategic efforts in CSR within its annual program, whereby it focused on meeting the needs and requirements of those who need support and assistance out of social solidarity and based on its national sense of social responsibility. In cooperation with Al Najat Charity Society, NIC sponsored some prominent and annual activities, including sponsoring the memorizers of the Holy Qur’an for the second year in a row during the blessed month of Ramadan. NIC also sponsored various Ramadan projects in collaboration with Kuwait Food and Relief Bank.
Al-Mukhaizim praised the exerted efforts and the outstanding performance of NIC during H1 2021, which reflects the success of the Executive Management in developing and building effective strategies that have achieved the complex equation that is based on the constructive presence in the market and capturing customer confidence on the one front, in addition to advancing innovation, excellence and competition on the other front.
Al-Mukhaizim pointed out that the three awards received by NIC in H1 2021, including, “Best Investment Management Company Kuwait”, “Best Wealth Management Company Kuwait” and “Best Asset Management Company of the Year GCC” confirm that NIC is the most conservative company of the international standards, which is reflected on the standard of customer confidence and their relations with the work system.
In conclusion, the Chairman of National Investments Company, Mr. Hamad Al-Ameeri expressed his thanks and gratitude to the Company’s shareholders and clients, appreciating their confidence and support to NIC. Al-Ameeri also extended sincere thanks to the regulatory authorities, and praised the efforts of the Executive Management and all staff for their efforts in achieving this performance and positive growth which is in line with the company’s strategic plan, emphasizing on pursuing the ideal approach of the Company’s vision in serving its clients based on the elements of systematic work, along with enhancing digital innovation in investment products and services.[/vc_column_text][/vc_column][/vc_row]