RAK Properties reports five-fold jump in profit to Dh64m
RAK Properties said its first-quarter profit rose more than five-fold as revenue increased.
Net profit for the threemonth period ending March 31 stood at Dh64 million ($17.45m), up from Dh12m a year ago, the company said in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.
Revenue grew more than three-fold to Dh124.2m while other income more than doubled to Dh26m.
The financial results “reflect the company’s ability to adapt its work to the current conditions and to continue developing residential and hotel projects that meet the needs of the real estate market, which has great growth opportunities”, said chairman Abdulaziz Al Zaabi.
RAK Properties will “also continue to develop commercial units that benefit from the growth of commercial and tourism traffic in the emirate and will explore investment opportunities to attract new segments of investors”, said Mr Al Zaabi.
Property prices in the UAE are expected to stabilise this year as the economy recovers from a coronavirus-induced slowdown and government initiatives to protect people and businesses drive growth.
New programmes such as visas for resident retirees and the expansion of the 10year golden visa initiative to attract foreign professionals to the UAE are also expected to support the local property market.
RAK Properties’ total assets stood at Dh5.96 billion at the end of the first quarter, up from Dh5.79bn at the end of December.
Total liabilities also increased during the period.
The company said the 266-apartment Julphar Residence in Abu Dhabi and the Marbella Villas project in its Mina Al Arab development will be handed over to customers this year.
Mina Al Arab is the company’s flagship Dh10bn development and consists of a pair of islands off the Ras Al Khaimah coast.
RAK Properties is also developing two hospitality projects at Mina Al Arab – an Intercontinental Hotel and Resort and an Anantara Mina Al Arab Hotel and Resort.
The Intercontinental Hotel is scheduled to open in the fourth quarter while Anantara Mina Al Arab hotel will start operations next year, according to the company.
It is also working on a pair of projects at Mina Al Arab known as Bay Residence and Gateway Residence 2.
“The investment in the infrastructure, lagoon revitalisation [and] marina in the Mina Al Arab master development is continuing as part of the corporate strategy to enhance the value of Mina Al Arab as a preferred destination where people aspire to live, work and enjoy,” a development update signed by RAK Properties’ acting chief executive Mohammad Al Tair said.