Bahrain-based Arcapita’s full-year profit jumps 77%
Company reports higher operating income on the back of gains made from investments
Bahrain-based investment firm Arcapita on Monday reported a 77 per cent jump in its net profit for its 2019 fiscal year as operating income rose due to gains from its investment portfolio.
Net profit for the 12-month period ending June 30, 2019 climbed to $21.9 million (Dh80.44m), accounts for Arcapita Group Holdings show. Total operating income jumped to $54.1m at the end of the fiscal year, from $37.7m a year earlier.
“The GCC’s investment landscape was impacted by a challenging macroeconomic environment that carried through from last year,” said Abdulaziz Hamad Aljomaih, chairman of the Arcapita group in a statement.
“Despite this, we have continued to source transactions in sectors where we have built considerable expertise over the past two decades, including the industrial, logistics and business services sectors. We are also actively looking at new asset classes to expand into to meet the needs of our clients and diversify our offerings.”
Arcapita’s total equity as of June 30, 2019 grew to $224.9m, representing a 9 per cent increase year-on-year. Total assets fell, however, to $291.1m, mainly due to a reduction in the group's liabilities.
The firm completed four US transactions and one in the GCC, for a total transaction value of over $250m during the period. These included two industrial real estate portfolios in the US, an industrial real estate portfolio in the UAE, and two bolt-on private equity investments in the US.
“We have set ambitious targets for the upcoming fiscal year and are well-positioned to continue providing innovative investment opportunities and delivering strong returns to our stakeholders,” said Atif A Abdulmalik, founding partner and chief executive of Arcapita.
Updated: October 7, 2019 05:02 PM