Nakheel outdoes 2013 numbers by third quarter itself

Nakheel outdoes 2013 numbers by third quarter itselfImage Credit: Supplied

Buoyed by sales revenues and rental income growth, Nakheel reported Dh2.6 billion in net profits for the first nine months, and which is already higher than what it put in for the whole of last year. It reported a net of Dh2.57 billion in 2013, while that for the first three months was Dh1.77 billion.

''We are poised to significantly exceed last year's results in 2014,'' said Ali Rashid Lootah, Chairman. ''With the bank debt repaid early and new cash-generating assets coming on stream, Nakheel is well on course to further strengthen its business and financial position going forward.''

But while sales continue apace, Nakheel's numbers have gained solidity by the steady expansion of its leasing portfolio. The latest financials reflect that in ample measure, ''with almost full occupancy of available units for lease'', according to a statement issued by the developer. Another buoyant business line comes by way of its leisure business.

''Our robust financial results reflect the growth in the real estate sector in Dubai, where Nakheel continues to play a strategic and important role,'' said Lootah. ''Since the financial year ending 2010, Nakheel (has) reported a year-on-year increase in net profit. Our financial performance reflects the strength of the underlying business, increasing investor trust and confidence.''

Recently, the developer managed to clean up its books by paying off its entire bank debts of Dh7.9 billion — four years earlier than what it was required to. Currently, it has a trade creditor sukuk of Dh4.4 billion, which becomes due in August 2016.

Nakeel had a busy Cityscape launching multiple projects, including a three-tower cluster at its flagship development, Palm. The Palm Gateway properties will add another 1,300 units to the residential stock.

''Palm is still a popular choice for many Dubai residents with sales remaining steady compared to other areas which have slowed down,'' said Rachael Ayliffe, Client Officer at Acrohouse Properties. ''Traffic is never an issue apart from the occasional big name act, but no tail backs off SZR (Shaikh Zayed Road) ever to get home in rush hour and with rentals dropping 10 per cent since the beginning of summer many are making the move from Dubai Marina.''

Nakheel's year so far

In the nine months ending September 30, Nakheel handed over 956 units to customers. Apart from clearing off its bank debts well ahead of schedule, Nakheel also made progress giving shape to the features that will make up Deira Islands. This included the announcement of what will be one of the largest retail destinations in Dubai. It also launched plot sales for sub-developers to build hotels there.

Read more on Nakheel who opens a retail centre in Discovery Gardens

Source: Manoj Nair, Associate Editor,


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