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Waha Capital PJSC, a leading investment management company in Abu Dhabi (ADX: WAHA), has announced its financial results for the third quarter of 2020.
The company’s Public Markets division continued to outperform its peer group, leading the company back into overall profit. Its Waha MENA Equity Fund contributed strong returns for Waha Capital and third-party investors, and the Waha CEEMEA Credit Fund showed significant percentage improvements in performance. At the same time Waha Capital launched the Waha Islamic Income Fund SP in July to cater to a growing demand from investors for Sharia compliant instruments.
Ahmed Khalifa Al Mehairi, who was appointed Chief Executive Officer in October, brings extensive experience in asset management and will set the investment strategy to maintain the momentum of the company’s strong growth trajectory attained in its record-breaking second quarter through to the year end and into 2021.
Waha Capital’s objective remains to progress and improve the asset base of the business, diversifying its investments and taking an active role in value creation for its portfolio companies in the energy, healthcare, real estate and financial services sectors.
H.E. Waleed Al Mokarrab Al Muhairi, Chairman of Waha Capital, said: “Waha Capital has made good progress on delivering its restructured business strategy implemented at the end of 2019. Both primary business divisions have demonstrated commendable resilience given the continuing challenging market conditions, and to an extent have recovered some of the ground lost at the beginning of the pandemic.”
Ahmed Khalifa Al Mehairi, Chief Executive Officer of Waha Capital added: “Our performance in the past quarter highlights the quality of our investment approach. We have the means and the appetite to grow both sides of our business and it is clear from our investors given the 43% rise in our share price in this past quarter that we are seen as a growth play. While we have exercised constraint in managing our expenses both in capex and staff recruitment terms, we have a number of new initiatives in the pipeline including a further high yield investment fund soon to be launched and regional Private Investment deals that will help to not only consolidate but also boost the growth that we are now witnessing.”
Key financial highlights for Q3 2020
- Total income of AED 282 million, significant increase over Q3 2019 income (AED 5 million)
- Total impairments of AED 17 million compared to AED 117 million
- Income contribution of AED 72 million by Private Investments (vs Q3 2019 loss of AED 151 million)
- Diligent management of costs reduced general and administrative expenses by 21%
- Net 3Q profit (attributable to owners of the company) of AED 86 million compared to a net loss of AED 205 million in Q3 2019.
- Net profit for first 9 months AED 59 million, compared to AED 387 million loss in 2019
With assets of AED 8.8 billion as of 30 September 2020, Waha Capital aims to optimize and expand its investment portfolio, taking advantage of attractive pricing for opportunities in high-growth sectors internationally. In August Waha Capital took a strategic stake worth AED 184 million in Despegar.com, a leading NYSE-listed company in the online travel sector operating in Latin America. Waha Capital’s investment programme of up to US120 million into US equities revealed in August is also likely to be ongoing to the end of the year with a number of additional options currently being assessed.
The company’s flagship funds have consistently outperformed the market. The Waha CEEMEA Credit Fund produced a total return of 13.5% in the first nine months of 2020, bringing total cumulative return since inception in 2012 to approximately 216%. In the same period, the Waha MENA Equity Fund delivered a total return of 6.0% and has provided a total return of over 192% since inception in 2014.
Within the Private Investments portfolio Waha Land reached over 90% occupancy of its industrial real estate assets and AAH surpassed its full year financial results of 2019 by the end of the third quarter by expanding the capabilities of its healthcare facilities and increasing levels of patient care. The company’s other investments across finance and energy performed well, contributing strong year on year growth and increasing pipelines of activity into 2021.
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