Press Release

For immediate release

Kuwait

Al Mazaya Holding Company KSC (Holding) has announced its financial results for the year ending 31 Dec 2012, during which the company achieved total revenues at USD 127.3m, alongside other operating revenues at USD 119.5m, and other revenues at USD 7.8m and approved provisions worth USD 3.2m, resulting in net profits amounted to USD 1.0m after deducting other expenses.

On the occasion of the announcement, the Chairman of Al Mazaya Holding, Mr. Rashid Al Nafisi said in the board meeting, attended by Mr. Fahad Al Ibrahim, Mohmaed Al Othman and Abdul Aziz Alughani, that Al Mazaya Holding succeeded in 2012 in completing the handover of its real estate projects and in meeting a large part of its financial obligations towards companies, investors and individuals.

Financial Results

He added that the company managed to sustain its financial and operational performance and market position, in line with its planned strategy and reserving policy developed in 2012. Taking into consideration the overall economic condition and the financial developments in world markets, the results ensured that the company succeeded over the past years in shifting losses to profitability after implementing the restructuration plan that included the disposal of a number of assets either through sale or swap.

Mr. Al Nafisi added that the volume of payables decreased from USD 128.9m to USD 61.9m by the end of 2012, and Al Mazaya and its team were able to achieve a 77% increase in rental revenues generated from its income-producing projects, amounting to USD10.1 m in 2012 compared to USD 5.7m in 2011.

Mr. Al Nafisi added that Al Mazaya has continued progress in handing over its sold projects, residential and commercial units, which resulted in revenues amounted to USD 104.5m, clarifying that Al Mazaya assets include real estate properties amounting to a total of USD 597.2m including USD 239.8m in income-generating properties and USD72.5m in empty plots and USD 91.5m worth of properties which are intended to be launched for sale or rent purpose and USD 193.3m of properties that are already sold off-plan, and which will produce upcoming profits corresponding with the completion and handover of the sold units.

Concerning the company’s financial statements for the financial year ending 31 Dec 2012, he observed that the total assets of the company reached USD 784.6m while shareholders’ equity amounted to USD 295.6m, while the total indebtedness of the company to local banks was USD 175.4m.

2012 Achievements

In reference to the most significant achievements of Al Mazaya Holding in the last year, Al Nafisi said that the company was able to acquire the 28% share of the Oman Development Company, in the plot of land located at Muscat in Oman, covering 6378 m2 against a sum of OMR 931k, so Al Mazaya becomes the owner of 100% of the property, provided that the settlement of the property cost will be from the fund distributions eligible to Al Mazaya. Therefore, the OMR 370.9k outstanding amount will be as a debt payable by the fund to Al Mazaya Holding; through this settlement the share of Al Mazaya in the fund will be adjusted to be 14.9% of the total fund value which amounts to OMR 1.96m.

He added that the company also managed to exit from certain real estate portfolios such as “Dubai Land fund” comprising 492 residential units in Dubai, achieving liquidity worth AED49m, and existed from from the Jumeirah Lake Towers Portfolio, which Al Mazaya had developed through it the AA1 tower and has sold its units generating AED51m in cash while keeping an office space of 11231 sq ft that the company intends to sell in a future move. Finally, there was an exit from the Al Madar Fund, which resulted in the reclassification of the assets and liabilities of the fund without leaving any direct impact on the income statement.

Al Mazaya Plan

Al Nafisi said about the plan of Al Mazaya Holding in the coming three years, and after taking all the required provisions during the last five financial years and completing most of the projects that were under development and changing it into income generating projects, currently the company has begun to study a number of new projects that fall under two main categories: the income producing aspect and the availability for sale. Accordingly, Al Mazaya had made an extensive study of the local, gulf and regional markets, preparing itself to explore the right sectors having satisfactory returns and with limited risk exposure, benefiting from previous experience and current market factors.

Al Nafisi ended by saying that Al Mazaya at present owns real estate assets in several different locations, and is in the process of conducting development feasibility studies for it through real estate alliances and through different investment structures.