Financial Press Release Q1 2025 – English

Net profit attributable to shareholders was BD ٤٨٩٬٦٠٥ for the first quarter compared to BD ٤٣٥٬٧٩٣ for the first quarter of ٢٠٢٤, an increase of ١٢٪. 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 ٣٫٢ fils compared with ٢٫٨ fils in the first quarter of last year.

Total comprehensive income attributable to shareholders amounted to BD ٥٣٠٬٩٥١ in the first quarter of ٢٠٢٥ compared to BD ٥٦٥٬٠٤١ in the first quarter of last year. Total income for the first quarter was BD ١٬٨٦٠٬٠٨٤ compared to total income of BD ١٬٩٧٧٬٨٠٥ in the first quarter of ٢٠٢٤, down ٦٪. 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 ٤٤٬٢٦٥٬٢٧٠ at the end of the first quarter versus BD ٤٣٬٣٧٧٬٤٨٣ at ٣١ December ٢٠٢٤, an Increase of ٢٪ primarily related to current period profit. Total assets Decreased by ٦٪ to BD ٨٧٬٥٨٥٬٨٧٠ compared to ٩٣٬١٠٠٬٨٤٠ at ٣١ December ٢٠٢٤, 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 ٢٠٢٥. Building onmomentum 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 ٢٠٢٣ 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 ٢٠٢٤ 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 ٢٠٢٥, 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.

Ends

Note: The press release and the full financial statements are available on Bahrain Bourse's website.

Esterad Investment Co. B.S.C. ("Esterad") is a leading investment firm and one of the oldest to be established in the Kingdom of Bahrain. Founded in ١٩٧٣ and listed on the Bahrain Bourse, Esterad has pioneered investments into key national projects and industries and has a long and proven track record of making secure investments in a variety of assets, regionally and internationally. Esterad's investment divisions include Real Estate, Private Equity and Public Market investments. The Company invests proprietary capital across a broad spectrum of real estate assets in lucrative locations and sought-after destinations. It also leverages its extensive experience and expertise in multi sector private equity, investing in diversified industries including Infrastructure, Technology, F&B, Services, and Real Estate across the GCC. Esterad's Public Instruments division invests capital in both equities and fixed income securities in Bahrain as well as in regional and global markets. With an ambition rooted in transformative investments in Bahrain and beyond, Esterad's world class management team selects investments based on stringent risk parameters, and the value it can add for shareholders, and the economies and societies in which it operates and serves.

For more information, please contact:

Zahraa Taher

Tel: +٩٧٣ ٣٩٦٣٠٩٩٧

Email: ztaher@finmarkcoms.com