CHAIRMAN'S MESSAGE


 

BOD Report on the Fiscal Year Ending as at 31/12/2017
Chairman’s Message

Respected Shareholders,
Peace and blessings of Allah be upon you,
On behalf of BOD members and the Executive management, and for myself, I would like to present to you the annual report on the company for the fiscal year ending as at 31/12/2017.
  • Stemming from the BOD’s responsibility towards the respected shareholders, the BOD hereby undertakes safety and integrity of the financial statements of the company, and that the same are duly prepared in accordance with the International Accounting Standards (IAS) approved by the Capital Markets Authority (CMA).
Respected Shareholders,
Undoubtedly all of you know that we are still working in an environment marked with recurrent amendments made to regulations, rules and laws, within economic atmospheres and challenges with their shades affecting various sectors, aside from such unprecedented regional and world geopolitical developments.  However, thanks to our trust in Allah and confidence in our shareholders, the company maintained distinguished and tangible outcomes and rewarding prospects for shareholders.
  • One of the outcomes of such an achievement, the BOD recommended to the General Assembly to distribute profit dividends amongst shareholders as follows:
  • 3% cash profits, 5% as bonus stock.
  • Dates for maturity and distribution thereof are scheduled as follows:
Maturity Date: 01/04/2018                       Distribution Date: 15/04/2018
  • Kuwait Business Town Real Estate Co. maintains good and profitable assets, and further enjoys cash flows allowing it to proceed with the implementation of its own investing and strategic policies seeking to achieve more diversity and expansion of its real estate portfolio, with an eye on the professional geographic ans sectorial distribution to ensure the company’s ongoing realization of expected profits—God willing.
  • BOD is still pursuing withdrawing from non-profiting investments, and further providing alternative assets and sustainable sources of revenues in the future, to the best interest of shareholders.
  • We will present to you the BOD Report tackling the following points:
First – Main Financial Indicators:
  • The company maintained real estate investments yields within such premium local and regional performance indicators, through maintaining occupancy ratios of investment real estate beyond 99%, as well as increasing the rental rates guide by such prevailing local and regional market rates, decreasing operation expenditures, and observing the highest professional level of real estate services for tenants of these real estates.
  • As for the consolidated financial results, we shall mention below the most significant financial indicators for the fiscal year ending as at 31st December 2017, compared to the fiscal year ending as at 31st December 2016:
  • Rental revenues hit KD 3,296,966/- compared to KD 3,137,291/- increasing by KD 159,675/-.
  • Total net investment profits reached KD 1,015,513/- compared to KD 2,435,471/- decreasing by KD (1,419,958/-).
  • Change in the fair value of invested real estates hit KD 1,066,233/- compared to KD 5,255/- increasing by KD 1,060,978/-.
  • Total revenues hit KD 5,411,566/- compared to KD 5,705,982/- decreasing by KD (294,416/-).
  • Total assets amounted KD 74,865,897/- compared to KD 69,673,980/-  increasing by KD 5,191,917/-.
  • Total current assets hit KD 35,475,984/- compared to 28,611,436/- increasing by KD 6,864,548/-.
  • Total liabilities reached KD 9,911,800/- compared to KD 6,796,433/- increasing by KD 3,115,367/-.
  • Total current liabilities amounted KD 3,258,462/- compared to KD 3,412,682/- decreasing by KD (154,220/-).
  • Total equities reached KD 64,954,097/- compared to KD 62,877,547/- increasing by KD 2,076,550/-.
  • Total expenditures amounted KD 2,112,432/- compared to KD 2,424,522/- decreasing by KD (312,090/-).
  • Total net profits of the parent company reached KD 3,160,748/- compared to KD 3,156,979/- increasing by KD 3,769/-.
  • Share profitability reached 5,55 fils, compared to 5,55 fils.
Second – Corporate Governance:
  • Since adoption of the executive regulations of the Capital Markets Authority, the company cared for implementing all instructions and rules specified thereunder.
  • The company constituted the necessary committees on 01/05/2016, which practiced its missions properly, and stands side by side to the BOD for developing the company’s performance.
  • The company also re-appointed a third party entity for conducting the functions of the Internal Auditing Unit. Furthermore, it re-appointed a third party entity for carrying out the functions of the Risks Management Unit.
  • A third party office is also appointed for preparing the Internal Control System Report (ICR).
  • Reports required have been submitted to the regulatory authorities on due time.
  • The company also updated its policies and documentations in conformity with the laws and instructions issued by the regulatory authorities.
  • The BOD and Senior Managament comply with effective corporate governance, and implements the highest level of control over behavior, integrity consolidation, and well-maintenance of the highest level of ethical behavior with regard to all activities of the company, through compliance with such main factors of sound governance, including transparency, responsibility, justice and integrity.
Third – Social Responsibility:
  • Pursuing the company’s approach for achievement of sustainable development of society, it organized, for the second year in a row, a blood-donation campaign in coordination with the Central Blood Bank, and also hosted the Kuwait Society for Preventing Smoking and Cancer (KSSCP) for providing advices and guidance for smoking people. A cash donation is given to KSSCP in support of its charity activities.
Fourth – Human Resources:
  • Kuwait Business Town Real Estate Co. is fully aware that staff qualification is a significat factor for its success and progress; therefore, it alaways strives to recruit efficient staff, while improving their skills, expanding their expertise and knowledge through training courses and awareness-raising forums, as the company’s staff are partners of our success we achieved so far. Seeking to build a team capapble of overcoming any challenges, and implementing a sustainable performance development in accordance with the best international practices, we set in place standard performance indicators to be measured periodically, so to reflect the actual results compared to those expected, for prompt correction of any deviations discovered.
 
Finally, we ask Allah, the Almighty, to make our efforts a success for achieving our expectations and strategic goals of the company, to the best interest of our beloved country and our respected shareholders. I also would like to thank our shareholders, my colleague BOD members, executive board and all staff for their sincere efforts and devotion to consolidate and support the company’s pursuits.
 
Salem Khidr Mohamed Al-Hassawy
Chairman
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Years:


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