With shareholders lauding the Company’s good performance amid COVID-19 challenges, Seef Properties B.S.C. one of the leading integrated real estate development companies in the Kingdom of Bahrain, held its Ordinary Annual General Meeting on 28 March 2021 via videoconferencing under the management of the Company’s Share Registrar, Bahrain Clear, in compliance with the instructions issued by the Government of the Kingdom of Bahrain within the framework of the national efforts to combat the Coronavirus (COVID-19) pandemic.
The Company’s financial results and most prominent achievements over the past year were reviewed and discussed during the meeting, which was presided over by Seef Properties’ Chairman, Mr. Essa Mohamed Najibi, and held in the attendance of Seef Properties’ Board Members, as well as its Chief Executive Officer, Mr. Ahmed Yusuf, other members of Senior Management and representatives from the Ministry of Industry, Commerce and Tourism, Central Bank of Bahrain and Bahrain Bourse.
The Ordinary Annual General Meeting approved the financial results for the year ended 31 December 2020 and the recommendations of the Board of Directors, which included the distribution of cash dividends to the shareholders of 5% (5 fils per share) amounting to a total of BD2.3 million. The Ordinary Annual General Meeting also approved transferring an amount of BD 490,000 to the statutory reserve account, as well as allocating an amount of BD 170,000 in support of charitable and community causes as part of the Company’s Corporate Social Responsibility Programme, whilst transferring an approved amount of BD1. 39 million as retained earnings for next year, in addition to the approval of the Board’s recommendation to allocate an amount of BD 170,000 as a remuneration for the Board Members for the financial year ended 31 December 2020.
Seef Properties maintained the momentum of its operations and achieved a net profit attributable to the shareholders of BD4.52 million for the year ended 31 December 2020, compared with BD10.93 million for the same period of the previous year, which is a decrease of 58.59%. The Company’s gross revenue decreased by 32.38% in 2020 reaching BD12.35 million, compared to BD18.26 million in the same period of last year. As for operating profit for the year 2020, the Company reported a decrease of 23.31% reaching BD10.40 million, compared to BD15.13 million in the same period of the previous year.
On the occasion of convening the Ordinary Annual General Meeting, Seef Properties Chairman, Mr. Essa Mohamed Najibi stated: “Despite the negative repercussions of the pandemic affecting all business and economic sectors, including commercial malls without exception, and the persisting economic impact on the hospitality, retail, commercial and entertainment business models, Seef Properties was able to maintain the momentum of its operations as a result of the implementation of flexible strategies to manage the crisis. We are dedicating all our efforts to meeting the aspirations of all our partners and to achieve a sustainable balance between preserving the interests of shareholders, while also supporting tenants and customers. Simultaneously, the Company is competently and efficiently managing its internal and financial resources with flexibility to adapt to the changing circumstances and variables.”
Commenting further, Mr. Najibi added: “Seef Properties prides itself on being one of the first national companies to proactively allocate a fund to support the tenants at Seef Malls with over BD1.5 million in rent waivers, in addition to a total of BD 3.5 million in rent deferrals via flexible extended plans, bringing the total support provided to tenants in our commercial malls to more than BD5 million. All tenants qualifying for the support criteria have benefited from this fund, which is intended to balance and protect the interests of all parties. This exceptional support stems from the Company’s belief in the criticality of the retail sector and its vital role in supporting the local economy, particularly in light of the current circumstances. Furthermore, this support demonstrates the Company’s commitment to all its tenants who are at the core of our business and commercial activities.”
For his part, Seef Properties Chief Executive Officer, Mr. Ahmed Yusuf added: “In 2020, Seef Properties continued to build on its two-decade legacy of excellence and leadership in 2020, taking steady strides with distinguished vision to preserve gains achieved to date, with such achievements being possible due to the sound directives of the Board of Directors and the commitment of all staff members in facing the unprecedented challenges of the pandemic and its negative repercussions on all economic sectors, especially the entertainment, hospitality and retail sectors.”
“Seef Mall – Seef District continued its leading role as a unique shopping destination in the Kingdom despite the unfavorable circumstances associated with the pandemic. It maintained its position as a leading family shopping attraction amongst its counterparts in the Kingdom of Bahrain and the GCC. In line with our strategy to establish further relationships with renowned global brands, Seef Mall will witness during this year the introduction of new brands drawn to its strategic location and modern facilities which meet the preferences and needs of different consumers,” Mr. Yusuf explained.
As for the latest developments of Al Liwan Project, which is the multipurpose joint venture project in Hamala, the Chief Executive Officer added: “Al Liwan is one of our iconic real estate projects, with all construction nearing the final stages of completion and leasing activities being underway, attracting prestigious companies and institutions from the Kingdom and abroad. The project will officially be opened this year, becoming an ideal tourist and entertainment destination in the Northern Governorate to serve the local community and the Kingdom’s visitors.”
Mr. Yusuf concluded by adding, “Seef Properties will continue its constant endeavors to increase its asset base by diversifying its investment portfolio and establishing more partnerships aimed at building a commercial base that serves the interests of shareholders and clients.”
It is worth noting that the Extraordinary General Meeting did not convene due to lack of quorum. Accordingly, the aforementioned meeting will be postponed to Sunday 4 April 2021 to be convened via videoconferencing at the same time and in accordance with the same procedures.