Dubai Investments reports rising rent income despite profit decline

LONDON: Dubai Investments said second-quarter profit fell 12 percent to 191 million dirhams ($52 million) as it plows ahead with a diversification strategy.

The Dubai-listed investment company said that rental income had boosted underlying cash flows.

Rental income rose by about 8 percent in the first half of the year, it said in a stock exchange filing.

The company which invests in a number of construction, industrial and real estate, said that excluding one-off gains from divestments in the first half of last year, its net profit had grown by about 150 million dirhams — or 45 percent more than a year earlier.

“The positive results are driven by growth in rental income which has contributed to increase in underlying cash flows,” said Khalid Bin Kalban, CEO of Dubai Investments.

He said the company was “positive” on the outlook for the remainder of the year and that its real estate projects were progressing on schedule.

The company also aims to diversify its revenue sources by branching out into the health care and education sectors.

Dubai Investments is currently developing the Mirdif Hills mixeduse project while the Green Community DIP — West Phase III is also in the process of being completed and handed over.

The group is also involved in other real estate developments in the UAE, including the Fujairah Business Center, a mixed-use development with hospitality and retail elements.

Dubai Investments Real Estate Company, a unit of Dubai Investments, has signed a deal for an 1.1 billion dirham loan to develop a residential project in Dubai’s Mirdif neighborhood, the company said on Sunday.