Ream Real Estate Company announced a significant 102% increase in operating profits for the fiscal year 2024 compared to its performance in 2023, marking a strategic turnaround in its financial trajectory after nearly six years of stagnation in profit.

In a press statement, the company attributed this transformation primarily to a rise in net operating revenues, a reduction in impairment losses, and a streamlining of expenses aligned with operational needs.

Transition to Operating Profit

In this regard, CEO Khaled Ali Al-Saghir stated that the results achieved by Reem Real Estate are not merely financial indicators, but a reflection of a deeper strategic shift, as the company turned to operating profitability for the first time since 2018. He emphasized that the financial figures position Reem to continue executing its well-considered plans to enhance future profitability and strengthen its financial standing.

Al-Saghir added that the 2024 indicators will have a positive impact on the company's future performance, driven by improved operational results. He noted that the significance of these financial outcomes is amplified by the challenging economic and geopolitical environment affecting markets, including Kuwait, in recent periods. He also pointed out that the results represent the success of the company’s rebuilding phase, initiated by the current executive management to address long-standing issues.

He highlighted that since the current executive team assumed control in 2021—following Capital Markets Authority Decision No. 38/2019 in October 2020 to dismiss the former board and executive management—Reem has repaid KWD 11.158 million, effectively eliminating 92% of its recorded debt, positioning the company for sustained financial and operational recovery.

Commitment to Sustainable Profitability

Al-Saghir expressed optimism that the coming phase will see continued sustainable profitability, supported by a forward-looking strategy that adapts to local developments and seizes future opportunities through practical operational planning.

He added that one of the positive financial indicators boosting the company’s outlook is the recent issuance of court rulings against former company officials (ranging from first instance to final judgments), amounting to over KWD 15 million. Once final rulings are in place, the company expects to enhance its financial position with strong liquidity levels, further driving operational and investment growth.

He also pointed to improvements in operational performance, citing the organization of a real estate auction scheduled for October 28, which will be the largest in terms of value and area in Kuwait’s auction history. The auction involves a KWD 85 million property commercial island with a hotel—located on four streets in Salem Al-Mubarak, covering a total area exceeding 157,500 square meters. He noted that this auction redefines the company’s operational trajectory and reflects strong confidence from major property owners in Reem's renewed ability to manage high-value and strategically located auctions.

Reaping the Benefits of Reform Strategy

Al-Saghir stressed that the company’s executive management is working hard to deliver long-term added value to both current shareholders—whether from the public or private sector, and potential investors and clients. He emphasized the continued benefits of the reform strategy adopted in 2021.

He revealed that following the return to operational profitability, Reem’s executive management is preparing to launch a new strategy, carefully designed and ready for implementation, focused on risk management that reflects the company’s market experience over the past six years. This strategy is aligned with future expectations and designed to address upcoming challenges and opportunities through well-defined, governance-based planning.

The new strategy, according to Al-Saghir, is based on two main pillars:

• Reclaiming Reem's leading position in the third-party property management sector, boosting confidence in its performance and future while enhancing competitiveness.
• Working towards relisting the company on Boursa Kuwait once regulatory requirements are fully met.

He explained that this step is part of a broader move by Reem’s leadership to protect the rights of current shareholders, expand the investor base, and increase liquidity flows—both operationally and from investment. The financial results achieved reflect a true response to the demands of relisting the company on Boursa Kuwait, supported by robust financial statements and a promising outlook in terms of both finances and operations.