The National Investor

1. Company Overview & Earnings Context

The National Investor (TNI) is an Abu Dhabi-based investment group whose activities include investments in commercial, industrial and agricultural enterprises, alongside management and property-related businesses. Its subsidiaries operate across areas including commercial investments, property investment, parking services and investment management.

TNI delivered an improved H1 2026 earnings performance, with fee and service income increasing to AED 21.31 million and net profit rising to AED 4.40 million from AED 3.26 million in H1 2025.

2. Financial Performance Snapshot

• Fee & Service Income: AED 21.31 Million (+8.6% YoY)

• Gross Profit: AED 15.21 Million (+9.6% YoY)

• Profit Before Management Incentive & Remuneration: AED 5.10 Million (+32.2% YoY)

• Profit Before Corporate Tax: AED 4.90 Million (+50.4% YoY)

• Net Profit: AED 4.40 Million (+34.9% YoY)

• Profit Attributable to Equity Holders: AED 2.53 Million (+24.8% YoY)

• EPS: AED 0.011, vs. AED 0.009 in H1 2025

• Total Comprehensive Income: AED 7.95 million, vs. AED 3.28 million

The improvement in profitability outpaced the increase in fee and service income, resulting in a stronger bottom-line performance during the first half.

3. Operating & Investment Performance

Fee and service income increased from AED 19.61 million to AED 21.31 million, while operating costs rose more moderately to AED 6.10 million from AED 5.73 million. This lifted gross profit to AED 15.21 million from AED 13.88 million.

General and administrative expenses remained relatively stable at AED 10.55 million, compared with AED 10.48 million a year earlier. Management incentive and remuneration also declined to AED 0.20 million from AED 0.60 million.

TNI recorded AED 12,905 as its share of profit from an associate, while the carrying value of its 30.56% interest in TNI Growth Capital Fund L.P. increased to AED 14.24 million from AED 10.65 million at the end of 2025.

4. Key Performance Drivers

The main driver of H1 earnings growth was the combination of higher fee and service income and relatively controlled operating expenses.

Gross profit increased 9.6%, while general and administrative expenses rose by less than 1%. Management incentive and remuneration fell by AED 0.40 million, and the Group had no finance cost during H1 2026, compared with AED 156,560 in H1 2025.

Other income also increased to AED 429,744 from AED 307,896, helping profit before corporate tax rise more than 50%.

TNI also recorded AED 3.58 million as its share of other comprehensive income from its associate, which was the major reason total comprehensive income increased to AED 7.95 million.

5. Balance Sheet, Cash Flow & Financial Position

TNI ended June 2026 with:

• Total Assets: AED 270.31 Million

• Total Equity: AED 259.44 Million

• Total Liabilities: AED 10.87 Million

• Cash & Cash Equivalents: AED 7.03 Million

• Bank Fixed Deposits: AED 15.19 Million

• Investment Properties: AED 88.39 Million

• Property & Equipment: AED 132.18 Million

• Investment in Associate: AED 14.24 Million

The balance sheet remains heavily equity funded, with liabilities representing only around 4% of total assets.

Cash flow, however, was weaker. TNI recorded AED 1.30 million of net cash used in operating activities, compared with AED 3.88 million generated in H1 2025. Working-capital pressure came from increases in receivables and other assets alongside a decline in trade and other payables.

Investing activities generated AED 4.84 million, but financing activities used AED 14.48 million, largely reflecting a AED 15 million return of share capital to shareholders. Cash and cash equivalents consequently declined to AED 7.03 million from AED 17.98 million at the beginning of the year.

6. Capital Changes & Investor Takeaway

A notable development during H1 was the reduction of TNI's share capital from AED 235 million to AED 220 million following an amendment to the Memorandum and Articles of Association dated 18 June 2026. The AED 15 million reduction was returned to shareholders during the period.

Overall, TNI's H1 2026 results showed improving underlying profitability. Fee and service income increased 8.6%, gross profit rose 9.6%, and net profit increased 34.9% to AED 4.40 million. Total comprehensive income more than doubled, supported by the Group's associate investment.

At the same time, operating cash flow turned negative, and cash balances declined significantly following the capital return. Trade and other receivables also increased to AED 10.20 million from AED 6.46 million, making working-capital management an important area to monitor.

The Group continues to hold substantial real estate-related assets, including AED 88.39 million of investment properties and AED 132.18 million of property and equipment, while maintaining a low overall liability base.

The independent auditor issued an unmodified review conclusion, stating that nothing had come to its attention indicating that the interim financial statements did not present fairly, in all material respects, TNI's financial position and cash flows in accordance with IAS 34.

Key areas to monitor in H2 2026 are fee and service income growth, profitability, operating cash flow, receivables, performance of the associate investment, and cash levels following the share-capital reduction.