First Bahrain is an innovative real estate investment company. Dedicated to achieving sustainable returns through collaborative relationships, First Bahrain creates enduring value for all stakeholders with a demand-driven investment approach. Operating out of Bahrain and Kuwait, First Bahrain is strategically positioned to execute projects across the GCC.
Established in October 2004 in Kuwait as Baraq Al Khaleej Holding Company, with a paid up capital of KD 1 million, the corporate name was changed to First Bahrain Real Estate Development Company, and the paid up capital was increased to KD 30 million. In 2007, First Bahrain opened an operating office in the Kingdom of Bahrain. Since its inception, the Company has been guided by the principles of Islamic Sharia in all its daily operations and business interests.
First Bahrain now owns or holds rights to over 1,000,000 square feet of strategically located land in the Kingdom of Bahrain. Groundbreaking for the Company’s inaugural project, a warehousing development at the Bahrain Investment Wharf (BIW) near the new Shaikh Khalifa Seaport, took place in early 2009.
All real estate is valuable. But land in itself has potential that is often unrealized. It takes vision to identify potential. A functioning community supported by a vibrant economy requires entrepreneurial leaders to identify such potential and to bring shape to that which did not previously exist. First Bahrain is such a company.
Shareholder's Details
Shareholders’ Name
% Holding
20th Management Project Co.
57.71
Wafra Investment Company
11.5
Housing Finance Co."Iskan
8.24
Source: Company
Financial Performance (in KD '000)
Particulars
2006
2007
2008
Total Revenues
4,149,348
5,513,105
3,391,284
Net Profit
3,766,862
4,853,994
2,594,266
Total Assets
37,067,205
41,201,955
42,626,877
Total Liabilities
294,254
437,704
610,325
Share Capital
30,000,000
30,000,000
31,500,000
EBIT
3,856,067
4,976,826
2,681,694
Net Margin
96%
88%
76.5%
Leverage
0.8%
1.6%
1.4%
ROA
10.7%
12.4%
6.2%
ROE
10.8%
12.5%
6.3%
Source: Company
Board of Directors
Salah Ahmed Al-Wuhaib (Chairman)
Shahnaz Hassan Qabazard (Vice Chairman)
Nayef Falah Al-Hajraf (Director)
AbdulKarim Abdulrahman Al-Khulaifi (Director)
Rasha Yousef Al-Awadi (Director)
Talal Abdulla Al-Omaim (Director)
Khalifa Abdullah Al-Tararwa (Director)
Management
Amin Al Arrayed (General Manager)
Mounther Al Sabbagh (Head of Investments)
Daniel Taylor (Head of Operations)
Financial Highlights
Total Assets increased for the year to KD 42.6 million from KD 41.2 million and Total Equity likewise grew to KD 42.1 million from KD 40.7 million.
Operating revenue increased to KD 5.7 million from KD 5.5 million in 2007. This gain in operating revenue was offset by one-time losses and provisions taken due to the current global financial crisis, and in keeping with a conservative approach to accounts intended to ensure the strength of the Company’s balance sheet. As a result, Net Income fell to KD 2.6 million from KD 4.8 million in 2007. Despite the reduction in profits, the performance is sufficient to meet the technical requirements for listing on the Kuwait Stock Exchange during 2009.
Current Ratio is 21:1, thus the Company has sufficient liquidity to meet all current and expected obligations.
The Company’s Seef land has been converted to Investment Property from Property Under Development with the cancellation of the Company’s project there. The land which had been substantially undervalued on the books was converted to fair market value, resulting in a gain of KD 5.4 million. This gain was offset by a one-time write off of KD 1.5 million in capitalized development costs associated with the project. Also, in this period, there was a gain of KD 943 thousand related to the 2007 sale of investment property at Seef, with the gain resulting in a reduction of area lost to government services.
Wakala income decreased by KD 299 thousand due to a decrease in cash as additional land was acquired in Bahrain.
The Company realized a loss of KD 1.3 million on its equity investment portfolio due to the collapse of regional stock market values in relation to the global economic crisis.
The Company took a conservative impairment loss of KD 483 thousand on a delinquent corporate Wakala investment of KD 1 million.
The Company also took a conservative impairment loss of KD 324 thousand against the underlying asset for its Property Under Development at Janabiya, as the land was acquired near the peak of the cycle.
Operating expenses for 2008 rose to KD 710 thousand, up from KD 536 thousand in the previous year, due to the activation of the company, establishment of offices and operational growth.
Increase in share capital was as a result of the issuance of bonus shares of 5% (5 fils per share) to the equity shareholders of the parent company on the register as of 24 April 2008. The Company also paid a cash dividend of KD 1.5 million in April.
72% of the Company’s KD 42.6 million in total assets held, including 100% of the land possessed, are concentrated in Bahrain. The remainder of the Company’s assets is mostly in short-term investments and denominated in Kuwaiti Dinars.
Liquidity
The Company’s shares are currently traded on the secondary market managed by Global Investment House
The Company will be eligible for listing on the Kuwait Stock Exchange in 2009.
Achievement Highlights
First Bahrain has just started the construction of the first of three phases of the warehousing and logistics facility located on a 716,000 ft2 plot in the Bahrain Investment Wharf, providing more than 429,000 ft2 of warehousing space. Designed by the international engineering firm Tebodin Consultants & Engineers, the project will be developed in three phases with the first phase due for completion by the end of 2009. The General Contractor is Abdulla H. Aldarazi Co of Bahrain. BWS have been appointed as Cost Consultants.
The Board of Directors acted to cancel the Company’s five-tower mixed-use Seef Project in October 2008 as a prudent response to the current global financial crisis. The Company has terminated all existing contracts with vendors and expensed all previously capitalized development costs during Q4 2008. The 238,164 ft2 of strategic land at Seef, opposite the newly opened Bahrain City Centre Mall, was reclassified as Investment Property from Property Under Development and revalued at market rates. These transactions produced a net accounting gain for Q4. The Company is looking to secure an exit from the land during 2009.
First Bahrain acquired a key 239,951 ft2 plot of land in Janabiya in 2008, for which it is planning a mixed-use residential development. The land is just off an exit to the main East-West highway, about a mile from the King Fahad Causeway to Saudi Arabia. This project is currently in the planning and review stage.
First Bahrain is taking prudent measures to guard its liquidity and to limit its risks in the face of the current global economic crisis.
For more information kindly contactGlobal Investment House on telephone number 1804242 or send "Online Inquiry".
All information in this report is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information. Global Investment House is not liable for any decision made or action taken in reliance on the information in this report or for any consequential, special or similar damages.
