Reef announced BD1.5 M net income in 8 months of operation

The company's financial and operational announcements positioned it as one of the most highly differentiated new entrants to the Kingdom's financial sector. From a financials perspective, the first 8 months of operations returned considerable earnings, with net income amounting to BD1.5 million; yielding a return on capital of 7.5% which exceeds the company's initial first year target. It was noted that by the end of 2006, the value of Reef's total assets portfolio stood at BD 35 million.

Speaking at the event, Mr. Ali Ahmed Al Baghli, the Chairman of Reef's Board of Directors stated "The success of Reef's first year of operations is underlined by a number of key business, operational, and financial achievements. On the business front, the company signed agreements with over 15 leading property developers and realty service providers as the preferred mortgage supplier for key residential and commercial projects. This has positioned Reef to provide financing for numerous individuals to purchase properties, and has enabled the company to build up a diversified portfolio of industrial, commercial and residential real estate investments that will provide both financial and social returns. Behind the scenes, it is the concerted efforts of a strong and dynamic team that has successfully positioned Reef as a keystone organization in the real estate finance market."

Dr Khalid Abdulla, CEO of Reef, further noted, "At Reef, we consider 2006 the groundbreaking for the establishment of a dynamic and vibrant brand, that champions the creation of an empowered state of choice for clients, superior franchise value for our service distributors, excellent returns to partners and shareholders and an innovative and rewarding working environment for our employees. On the business front, our first year was met by public demand for housing that outgrew all expectations and entailed allocation of most available resources to that end, resulting in operating revenues of BD2.6 million. Accordingly, and through our strategic alliances and partnerships we have committed to making available mortgage financing for over 3,000 housing units, illustrating our commitment to bringing the acquisition of properties within the reach of most Bahrainis and GCC residents."

The Annual General Meeting closed with Mr. Al Baghli noting thanks and appreciation to the company's shareholders for their confidence and financial support; to clients for their loyalty and trust; and to business partners and staff members for their commitment and contribution throughout the year. All signs point to expectations that 2007 will be a challenging, eventful, and even more prosperous year for Reef.