Esterad Reports a 12% Increase in Net Profit Attributable to Shareholders for the First Quarter of 2025; Appoints New Chairman, Mr. Nabeel Nooruddin Succeeding Mr. Hisham AlRayes

Biz Bahrain

11-05-2025

Esterad Investment Co. B.S.C. ('Esterad' or 'the Company') (Trading Code: ESTERAD) announced its financial results for the first quarter of 2025 ('the quarter') ending March 31, 2025.
Net profit attributable to shareholders was BD 489,605 for the first quarter compared to BD 435,793 for the first quarter of 2024, an increase of 12%. Stronger profits were a result of gains primarily from the continued restructuring of the Company's previously acquired diversified global private equity and real estate portfolio. Earnings per share for the quarter was 3.2 fils compared with 2.8 fils in the first quarter of last year. Total comprehensive income attributable to shareholders amounted to BD 530,951 in the first quarter of 2025 compared to BD 565,041 in the first quarter of last year. Total income for the first quarter was BD 1,860,084 compared to total income of BD 1,977,805 in the first quarter of 2024, down 6%. The decrease resulted primarily from decline in the Company's Turkish listed equity portfolio in line with the declines seen in the Turkish equity indices during the first quarter. These equity positions have, however, already recovered in value in the second quarter. Total equity attributable to shareholders was BD 44,265,270 at the end of the first quarter versus BD 43,377,483 at 31 December 2024, an Increase of 2% primarily related to current period profit. Total assets Decreased by 6% to BD 87,585,870 compared to 93,100,840 at 31 December 2024, primarily resulting from declines in the Company's Turkish listed equity portfolio. Commenting on the results, Mr. Hisham Alrayes, Chairman of the Board of Directors of Esterad, said, 'We are pleased to report sound results and performance for the first quarter of 2025. Building on momentum across our business, we successfully delivered another quarter of double-digit growth in profitability despite market volatility. During the first quarter of the year, we continued to make progress in the restructuring and management of key turnaround assets acquired in late 2023 with recovery of value reflecting positively on results.' Mr. Hisham Alrayes added, 'I am also pleased to announce that Mr. Nabeel Nooruddin will be succeeding me as Chairman of Esterad. I have made the decision to hand over leadership of the Company to focus on GFH Financial Group and my private business ventures. Over my six-year tenure, and in close collaboration with the board of directors, we succeeded in transforming Esterad into one of the region's leading investment companies. I am proud of the solid foundation we have built, delivering strong financial performance and advancing our investment strategy. I am confident that under Mr. Nooruddin's leadership, Esterad will continue to build on this momentum and achieve even greater success in the years ahead.' Commenting on the financial results, Mr. Ahmed Abdulrahman, Chief Executive Officer, said, 'We are proud to announce strong results for the first quarter, and we will continue with our efforts to reposition additional assets within our diversified global real estate and private equity portfolio to unlock greater value during the remainder of the year.' 'A contributor to our positive performance in the first quarter was the continued progress of Esterad Bank. The Bank entered the year on strong footing, having successfully returned to profitability in 2024 and strengthened its financial foundations through the effective recapitalization of the business, deleveraging of the balance sheet, and a return to positive equity. During the first quarter of 2025, the Bank continued its strategic focus on identifying and executing high-value opportunities with a strong pipeline of new deals. This includes work on two strategic acquisitions in the US and UK commercial real estate sectors, which it undertook during the first three months of the year and expects to close during the second quarter. These opportunities, which have been secured at preferential rates and will enable us to realise a high rate of return, reflect our confidence in the long-term fundamentals of these key global markets for the Bank and its GCC investor base. The Bank is also in the advanced stages of executing three additional transactions in the regional commercial real estate and private equity sector, which it expects to close during the second or third quarter of the year. We are pleased with this strong pipeline of activity, and investor appetite for these sound and unique income-generating investments Esterad Bank continues to source and bring to market.' Mr. Abdulrahman added, 'On behalf of the Board and management team, I would like to sincerely thank Mr. Hisham Alrayes for his dedicated leadership and invaluable contributions during his tenure as Chairman. Under his guidance, Esterad has made significant progress in strengthening its financial position and advancing its investment strategy. Mr. Hisham Alrayes will remain a supportive shareholder of the Company. We also warmly welcome Mr. Nabeel Nooruddin as our new Chairman and look forward to working with him to build on this momentum and lead the Company into its next phase of growth.' Mr. Nabeel Nooruddin, incoming Chairman of Esterad, added, 'I am honoured to take on the role of Chairman at such a pivotal time for Esterad. The Company has demonstrated strong resilience and focus in repositioning its portfolios and delivering positive results and growth despite challenging market conditions. I look forward to working closely with the Board and management team to further strengthen our investment platforms and pursue new strategic opportunities that will enable us to continue creating sustainable value for our shareholders.'
Mr. Nooruddin brings over two decades of regional and international financial experience, including founding and leading Alpine Wealth Management, where he focused on strategic wealth advisory and investment planning after having worked at Merrill Lynch and Citibank, building a strong foundation in financial planning and risk management. His expertise spans wealth management, investment strategy, financial planning, and international trade.