Al Mazaya holds 3rd Annual Financial Analyst Meeting

The key presentation of the seminar was delivered by Eng. Khalid Esbaitah, Managing Director & CEO of Al Mazaya, in the presence of Mr. Rashid Al Nafisi, Chairman of Al Mazaya Holding and the firm's management teams from both, Dubai and Kuwait.

The meeting was also attended by the firm's managers, its Board of Directors and a large number of shareholders, fund managers, investment firms, banks and brokerage firms, in addition to investors and the media.

Al Nafisi welcomed the audience, saying that the seminar reflects Al Mazaya's commitment to transparency through detailed analyses and explanations of the firm's performance, the progress of its projects, its future plans and its financial results.

Al Nafisi said that Al Mazaya welcomed open discussions of its financial performance with investors and analysts, deepening their mutual trust and enabling investors to conduct in-depth research on the company's share performance in comparison with that of other companies, and the company to keep its shareholders updated with regard to these issues in the long term.

The seminar was aimed at all the various partners in Al Mazaya's success, including contractors, consultants, company employees and the media, who contribute significantly to the augmentation of Al Mazaya's position as a key player in the regional real estate market.

After his welcoming speech, Eng. Khalid Esbaitah issued a cautionary note, indicating that Al Mazaya is not liable for any error published by media with regard to news related to this financial seminar and the topics under discussion.

He then began his address of the seminar with the dedication of a gift to the Prince of Kuwait and the Kuwaiti peoples. The gift, a video recording detailing an initiative aimed at transforming Kuwait into a first class financial, cultural and metropolitan hub, was shown to the audience as Esbaitah expressed his wish that Al Mazaya's vision be implemented in Kuwait.

Esbaitah went on to describe the company's various sectors of activity, as well as its history and structure, its branches, projects and capital revenues, giving examples of each individual project in Kuwait and in other GCC countries.

He mentioned that the company was established in 2004, with a capital of KD15m, which grew to KD37.5m by 2007 and KD45.5m in 2008, as a result of having sold a 23% stake to strategic investors.

Esbaitah added that Al Mazaya listed on both, the Kuwait Stock Exchange and Dubai Financial Market, with and headquarters in Kuwait, and offices in two prime locations in Dubai, at Dubai International Financial Center and Dubai Medical City.

He spoke of the company's 30 affiliates, all of whom carry out specific tasks, and spoke highly of the skills, experience and strengths of the Board of Directors and the firm's 150 employees, saying that the company has managed to recruit and train a team of highly experienced personnel, despite the difficulty of finding a skilled and experienced management team with a good track record. Esbaitah commented that the lack of such employees presents a challenge for many of the region's companies.

Esbaitah spoke of the awards and other accolades received in recognition of the firm's achievements over the last year, including ISO 9001:2000 certification, the Arabian Business Award for the Best Property Firm for 2007, being ranked 34th on the list of Arabian Business Magazine's Most Admired Companies and receiving the Top Real Estate Company Award presented by Tamweel PJSC.

In addition to these recognitions, the company recently obtained a license from the Real Estate Regulatory Authority to establish various property projects in Dubai.

Esbaitah said that the establishment and operation of the Mazaya Property Index was one of the firm's most important achievements during 2007, being the first index of its kind in the region, adding that it was an achievement not only for Mazaya, but for the region as a whole, since the objective of the index is to focus on property trends in each region and city inside each country in the region - a service toward which the index operators are currently working and which is expected to be announced in the near future.

Esbaitah said that Al Mazaya's investments in Kuwait, the UAE and other GCC countries amount to $300m, $10bn and $1bn respectively. He stressed the significant potential of Al Mazaya's Dhs5bn investments in DownTown Jebel Ali, saying that this investment would be a turning point for the company in terms of profits and return, and would set a precedent for the company's future investments.

Esbaitah also pointed to the company's 70-storey flagship office tower project on Sheikh Zayed Road, and referred to the company's promising presence in Qatar, with a QR500m portfolio.

In the second half of the seminar, Esbaitah gave a review of the company's financial performance, stating that profits have grown substantially, with an average 96% annual growth in assets as well as an increase in the volume of profitable projects undertaken by the firm.

Esbaitah said that 90% of the company's profits are derived purely from operations, and that shares in the company yield high returns.

Al Mazaya's total assets have grown from DK36m in 2004 to DK302m in 2008, with 46% from projects under development, 16% from the firm's various investments and the remainder made up in plots for sale.

Esbaitah clarified that the company's investment plan includes projects that offer both short and long term returns, using the Sky Gardens project, which has already been completely sold out, as an example of a short term investment, whose profits will be divided up between the 2008 and 2009 financial years.

Meanwhile, Esbaitah referred to such projects as the 7-Zones Medical Clinics in Kuwait and the Al Mazaya Tower on Sheikh Zayed Road in Dubai as long term investments, the latter of which is expected to show a profit of 12%-15%.

Esbaitah briefed the attendees on the geographical layout of the firm's various projects, 78% of which are in Dubai, 15% percent in Kuwait and the remainder scattered across the rest of the GCC.

On the firm's profits for 2007, Esbaitah said it was KD32m, and promised to maintain the balanced accumulation of profits for the company, saying that the KD13m profit achieved in the first quarter of 2008 - an increase of 256% - is another indication of the company's potential for sustainable growth.

Speaking about the financial evaluation of Al Mazaya's share at Kuwait Stock Exchange, Esbaita said that the share value is 940 fils at P/E equaled 9, while the price of the share is fair at KD1.5, considering that the P/E rate in the market is 13.3. Esbaitah added that the company seeks to satisfy its investors, paying out a 50% cash dividend and 20 bonus shares for each 100 shares at the end of 2007.

Esbaitah said that the company adopts a safe policy based on accountability, and that profits are derived from project operations, parallel with execution and marketing to ensure that returns coincide with the execution of each stage, especially since the company has already succeeded in marketing all of its projects.

Following this detailed explanation of the company's history, present and future aspirations, Eng. Esbaitah said the company's goal is to increase profits for shareholders and achieve the best possible returns for investors, based on the sound asset investments that protect the company, and to focus on completing all of the company's projects within the stipulated timelines and quality specifications.

To this end, the company has had to draw from existing investment opportunities, which have yielded rewarding returns for the company and its shareholders, and to establish property funds and portfolios with which to finance its projects. The firm has sought merger and acquisition transactions as a means to overcome the fierce competition in the industry while maintaining the values of credibility and transparency, boosting the company's position in the regional real estate sector.

Esbaitah emphasized the importance of the company's highly qualified, skilled and loyal human resources, as well as its investors and their confidence in the company, and the resulting customer loyalty, stating that these elements are among the firm's top priorities.

Esbaitah concluded his presentation with the story of an investor who started out with a KD100 000 investment in Al Mazaya, achieved a profit of KD20 000 in the first year, another KD20 000 in the second year, in addition to bonus shares which he chose to retain.

Over the years, his annual profits rose to between KD20 000 and KD30 000, plus more bonus shares, and today, that man's investment has netted him more than KD2m.

The Financial Analyst Meeting was concluded with the presentation of awards in recognition of outstanding contributions to the success of Al Mazaya.

Awards were presented to Arabtec Holding, represented by the CEO, Mr. Riad Kamal, for their contribution in the form of execution of construction works, to Sahara Group, represented by Dr. Ahmed Al Samerai, President of the Group, for their outstanding contribution in boosting the company's media presence, to the company Global Investment House, represented by Mr. Mustafa Zantout, CEO of Marketing, to the Commercial Bank of Kuwait, represented by Mr. Jamal Al Mutawa, CEO of the bank, to the Shangri La Hotel, represented by Mr. Waleed Tawfiq, Deputy General Manager of the hotel, to Emirates Airlines, represented by Mr. Nadeen Lahed, Regional Manager for Kuwait, and to Tahadi Al Aser, represented by Mr. Dhari Al Wazan, the company's CEO and to a group of Kuwaiti and GCC newspapers and TV channels.