Ream Real Estate Company announced its return to profitability, with a 102% jump in operating profits in 2024 compared to its performance in 2023. The company attributes this mainly to an increase in net operating revenues (attributable to the parent company’s shareholders), a decline in impairment losses, and the streamlining and reduction of expenses in line with operational needs — a remarkable turnaround in the company’s financial trajectory and future outlook.
Khaled Ali Al?Sugair, CEO of Reem, stated that the latest financial figures, especially those recently approved by the Board, carry heightened significance, as the company has achieved operating profit for the first time since 2018 (six years). This milestone is a qualitative turning point for its financial metrics going forward, he noted, with several indicators expected to positively influence Reem’s future performance by boosting its operational strength.
Financial Figures
Al?Sugair emphasized that the importance of Reem’s financial results is magnified, especially after a six-year hiatus, despite the economic challenges posed by numerous events and developments affecting the local market and the company since the Capital Markets Authority’s decision in October 2020.
He pointed out that since the current Board and executive management assumed office in 2021 — following the CMA’s decision No. 38/2019 in October 2020, which removed the previous Board and management — the company has successfully repaid KD 11.158 million. Accounting?wise, this means eliminating 92% of the debts recorded in its books, positioning Reem as more financially and operationally capable of sustainable performance in upcoming periods, free from the burden of inherited debt obligations.
Positive Indicators
Al?Sugair noted that among the encouraging financial safety indicators for Reem’s positive outlook is the recent issuance of court rulings (both first instance and final) exceeding KD 15 million. He indicated that final judgments in this regard would further strengthen Reem’s financial position in future periods through enhanced liquidity, which will act as an additional driver for continued growth of Reem’s operational and investment activities.
He affirmed that the company’s executive management is working diligently to deliver long-term added value to Reem’s current shareholders — whether government entities, private or individual shareholders — and its potential future investors and clients. He noted that they continue to benefit from the reform strategy adopted by the current management in 2021.
Al?Sugair said that after this return to operating profitability, the executive team at Reem is preparing to implement a new operational plan, thoroughly studied and risk?managed, taking into account all changes that have affected the market and company operations over the past six years, as well as aligning with future expectations regarding challenges and opportunities, all under institutional governance standards.
He added that Reem’s new strategy rests on two main pillars:
Regaining a leading position in third?party property management, especially, and real estate in general, supported by modern technological and digital tools to reflect confidence in its performance and future, and strengthen its competitive capabilities in the sector.
Pursuing a well?planned path toward reinstatement on the Kuwait Stock Exchange in the future, after meeting the regulatory requirements in this regard.
He explained that this step is part of a broader initiative led by Reem’s leadership to protect the rights of current shareholders, expand the base of potential investors, and increase operational cash inflows and investment inflows.