ADX-listed Eshraq Investments returned to profitability with Dh3.5 million profit in the second quarter. This represents a significant improvement compared to a net loss of Dh306.1 million in Q1 2024.
The company attributed the turnaround to a slight recovery in the value of the Goldilocks Fund, with strategic exits from certain investment positions contributing to stronger financial performance. Finance income increased by 52.7% year-on-year and 26.1% quarter-on-quarter, while finance costs decreased by 34.3% and 2.4%, respectively. Eshraq also reduced its total liabilities by 8% since the end of 2023, continuing its efforts to deleverage the balance sheet.
Eshraq’s real estate operations generated Dh4.1 million in revenue for Q2 2024, up 1% compared to Q1 2024 but down 49% year-on-year due to a decline in rental income following the sale of assets in Dubai. Occupancy rates for its residential assets in Marina Rise Abu Dhabi remained strong, averaging around 98%.
The Goldilocks Fund’s net investment value stood at Dh1.03 billion in Q2 2024, showing stability following earlier declines. The fund now holds 15 investments, focusing on sectors such as shipping and logistics, real estate, and financial services.
The company continues to execute its refreshed strategy, focusing on directly held private equity investments in high-growth GCC companies, it said in a statement. Eshraq is also making progress on income-generating assets, with a luxury residential project in Palm Jumeirah, Dubai, moving forward. Over 90% of units have already been sold, and the project is expected to be completed in the first half of 2026.
Eshraq is also transitioning legacy assets, with plans to establish a Real Estate Development Fund to generate stable rental revenue and develop future real estate assets. The company is in the legal due diligence and design phase of this fund, aiming to create a sustainable long-term revenue model.
