On behalf of the Board of Directors’ of Dubai International Investment PJSC, I am pleased to present the Annual Report and audited Statements for the financial year ended 31st December .
As economic conditions improved in the UAE during , Dubai International Investment PJSC continued to adopt policies and measures suited to the changing market conditions to ensure that the Company is well positioned to create long term value for its shareholders.
Due to the strong Balance Sheet with almost no leverage, the Company was under no constraints to make any distress sale and have therefore prudently waited for the real estate market to appreciate and thereby in the process maximize the returns for the shareholder at the opportunistic time. As a result, the sale of plots of land achieved in has been at or above the market price.
However, during the relatively tougher years for real estate, the investments have provided a source of recurring income. In , the net contribution to the bottom line from the Investments is $134 million, which includes a non-cash gain of $70 million, arising from the Company’s shareholdings in Sorouh being acquired by Aldar, and recognized in accordance with the International Accounting Standards.
Further, the unrealized gain in the Company’s investment portfolio increased by 103% as at 31st December . The Company will continue to monitor the appropriate timing for selectively exiting its investments.
On the real estate front, there has been a steady increase in third party developers commencing work due to the completed infrastructure works in Rawdhat and Najmat (Phases 1 and 2). The Company too has commenced work on the construction of Nalaya Villas, comprising 42 luxury villas in Najmat on Reem Island. This exclusive villa community offers residents an exotic beachfront lifestyle in rich surroundings, with a choice of three, four and five bedroom luxury-inspired villas.
In the course of as a part of restructuring exercise, the Company reduced general and administrative expenses by 30% compared to 2018 whilst maximizing operational efficiencies.
I am pleased to announce a profit of $152 million for the financial year ended up 47% from 2018, representing an EPS of $1.96. As at 31st December , the book value stood at $62 per share, reflecting a 12% increase over 2018.
In light of our financial performance, the Board of Directors’ are proposing a 10% cash dividend distribution based on the capital of $777.5 million.
The Company continues to remain on a strong footing on the Balance Sheet as is reflected in the Net Assets of $4.8 billion. Going forward, the Company would seek the continued support of shareholders as it proposes to embark on new real estate projects aligned with Plan Abu Dhabi 2030, in its bid to diversify and strengthen the recurring source of income while augmenting the Balance Sheet.
I would like to express my sincere gratitude to H.H. Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE, for his ongoing support and leadership.My sincere appreciation is also due to H.H. Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and H.H. Sheikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, for their guidance and encouragement.
Please allow me also to convey my deepest appreciation to our shareholders for their continued confidence in us. I am also grateful to the Board of Directors for their invaluable inputs and pivotal role they have played in steering the Company towards continued growth in a challenging year. I would also like to commend the Management and the staff for their dedication and commitment.