Healthy core earnings as well as robust expansion in the share of gains from associates and revaluation of investment properties led Ezdan Holding Group to report a 20% jump in net profit to QR1.22bn during January-September 2015.
“We believe that the results are in fact very positive when compared to the surrounding economic environment, not locally, but regionally and globally,” Ezdan Holding Group chairman Sheikh Dr Khalid bin Thani bin Abdullah al-Thani said.
Rental income grew 13% to QR1.13bn; dividend income by 10% to QR184.36mn and net gains on sale of available-for-sale financial assets by 25% to QR202.85mn, according to its financial statement filed with the Qatar Stock Exchange.
The group aims through this strategy to achieve high return rates while minimising risk for its core investments and ensuring their stability, a company spokesman said.
Operating profit rose 15% to QR1.35bn despite a 22% fall in other operating revenues to QR39.38mn and 4% jump in operating expenses to QR213.97mn.
The remarkable gain in the group’s profits, despite the economic setback that the regional markets are enduring, is attributed to the stability of the Qatari market and the continuation of the group’s revenue rates in achieving record levels, according to the spokesman.
Share of results of ‘equity-accounted investees’ soared 34% to QR254mn; gain on revaluation of investment properties grew about five-fold to QR18.62mn and other income by 58% to QR21.3mn. The company also booked QR4.96mn as gain on sale of investment properties.
“The transformation of Ezdan Holding Group from a real estate company into a holding group aimed at widening investment options, which is what actually happened through the entry of the group into new investment sectors by acquiring influential stakes in companies with distinct growth rates,” Ezdan Holding Group chief executive Ali al-Obaidli said.
However, the company witnessed a 19% surge in finance costs to QR255.81mn.
Total assets were valued at QR45.87bn, comprising investment worth QR34.55bn in properties, available-for-sale financial assets of QR5.84bn, investment of QR3.19bn in ‘equity-accounted investees’ and cash and bank balances of QR1.39bn.
Total equity stood at QR30.23bn on a capital base of QR26.52bn and earnings-per-share was QR0.46 at the end of nine-month ended September 30, 2015.