Nakheel tops 2013 profit in nine months

Al FurjanAround 500 new villa plots in Al Furjan are set to be developed l Image Credit: Courtesy Nakheel

Nakheel has announced a net profit of Dh2.6 billion for the first three quarters, which already exceeds the company’s profit last year and is 47 per cent higher than the Dh1.77 billion profit during the same period last year. Nakheel reported a profit of Dh2.57 billion last year, which was a 27 per cent increase on 2012.

Strong revenue from property development and ongoing improvements in Nakheel's retail, leasing and leisure business performance contributed to the robust results, the company said.

During the first nine months of the year, Nakheel handed over 956 units to customers. The company's retail and leasing businesses also reported almost full occupancy.

Nakheel has also prepaid its Dh7.9 billion bank debt this year. The developer currently has a trade creditor sukuk of Dh4.4 billion, due to be paid in August 2016.

"We have achieved a higher profit for the first nine months of this year than we achieved throughout the whole of last year, so we are poised to significantly exceed last year's results this year," said Ali Rashid Lootah, Chairman of Nakheel. ''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. Our robust financial results reflect the growth in the real estate sector in Dubai, where Nakheel continues to play a strategic and important role.

“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 in Nakheel and the ongoing support of the Government of Dubai."

Meanwhile, Nakheel has recently awarded a Dh120-million contract for infrastructure work at its AI Furjan master community. Dubai-based Target and Jima Construction Company was appointed to construct 16km of roads and the preparation of nearly 500 third-party villa plots.

Work is due to begin by the end of this month, with a planned 16-month completion timeline.

Nakheel is also building a 10,00-sq-m retail and recreation hub in the AI Furjan development.

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Source: Property Weekly


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