Nakheel Properties reported a net profit of AED 1.85 billion (US$ 503 million) for the first half of this year, an increase of 54 percent from AED 1.2 billion (US$ 326 million) for the same period last year.
Nakheel said the company's improved performance in retail, leasing and leisure as well as the strong performance of real estate development revenues contributed to the strong results. Nakheel said improved performance in the company's retail, leasing and leisure businesses as well as strong performance in real estate development revenues contributed significantly to the strong results. The announcement of the half-year results comes two weeks after Nakheel announced its intention to pay AED 7.9 billion ($2.1 billion), representing all of its financial obligations to financial creditors, starting August 2014, after it was scheduled to be paid in installments over the next four years, a sign that Nakheel has overcome its challenges and obstacles due to the global financial crisis.
In the six months ending June 30, 2014, more than 627 units were delivered, while retail and corporate leasing saw almost full occupancy of units available for rent and the entertainment sector contributed to the improved performance over the past years.
Ali Rashid Lootah, Chairman of Nakheel, said: «These strong financial results reflect the growth in Dubai's real estate sector, where Nakheel continues to play a strategic role, and the half-yearly increase in net profit reflects the strength of our core business, increased investor confidence in Nakheel and the continued support from the Government of Dubai.»
Nakheel is currently developing a variety of new projects in the residential, retail, leasing and hospitality sectors, including Nakheel Mall and Deira Islands, and plans to build 10 hotels over the next five years. Returning to Nakheel's chairman, he added: «With the company's debt and assets paid off, Nakheel is on track to continue strengthening its business and financial position.»
Nakheel said earlier that it had saved about 400 million dirhams ($108 million) that it would have paid in interest if it had paid according to the dates it agreed with the creditor banks, with the last payment date in March 2018.
The bulk of the company's debt (AED 6.8 billion) is due in September 2015, AED 200 million ($53.4 million) in 2016 and AED 900 million ($600 million) in 2018, but the company no longer needs those dates after completing its proactive repayment plan in full.
Nakheel's success in overcoming financial challenges is due to the restructuring of its projects, while generating good returns, and the company expects cash flows during the current year alone to reach about nine billion dirhams ($ 2.4 billion).
According to Nakheel, it has delivered about 7,500 housing units so far to its owners after dividing its projects into short-term, contracts awarded to contractors and completed, and long-term, then launched 20 development projects according to market needs, supply and demand, with a combined investment value of about 12 billion dirhams (3. 2 billion dollars).2 billion dollars to be pumped by the company during 2011 to 2014 to develop about eight million square feet of hotels and expansions in existing projects, shopping and retail centers, while the share of hospitality projects of the total investments approved by the company amounted to a third of the total investments approved by the company worth 4 billion dirhams (1.06 billion dollars) will add in its portfolio about 2912 hotel rooms.
(Middle East)
Nakheel said the company's improved performance in retail, leasing and leisure as well as the strong performance of real estate development revenues contributed to the strong results. Nakheel said improved performance in the company's retail, leasing and leisure businesses as well as strong performance in real estate development revenues contributed significantly to the strong results. The announcement of the half-year results comes two weeks after Nakheel announced its intention to pay AED 7.9 billion ($2.1 billion), representing all of its financial obligations to financial creditors, starting August 2014, after it was scheduled to be paid in installments over the next four years, a sign that Nakheel has overcome its challenges and obstacles due to the global financial crisis.
In the six months ending June 30, 2014, more than 627 units were delivered, while retail and corporate leasing saw almost full occupancy of units available for rent and the entertainment sector contributed to the improved performance over the past years.
Ali Rashid Lootah, Chairman of Nakheel, said: «These strong financial results reflect the growth in Dubai's real estate sector, where Nakheel continues to play a strategic role, and the half-yearly increase in net profit reflects the strength of our core business, increased investor confidence in Nakheel and the continued support from the Government of Dubai.»
Nakheel is currently developing a variety of new projects in the residential, retail, leasing and hospitality sectors, including Nakheel Mall and Deira Islands, and plans to build 10 hotels over the next five years. Returning to Nakheel's chairman, he added: «With the company's debt and assets paid off, Nakheel is on track to continue strengthening its business and financial position.»
Nakheel said earlier that it had saved about 400 million dirhams ($108 million) that it would have paid in interest if it had paid according to the dates it agreed with the creditor banks, with the last payment date in March 2018.
The bulk of the company's debt (AED 6.8 billion) is due in September 2015, AED 200 million ($53.4 million) in 2016 and AED 900 million ($600 million) in 2018, but the company no longer needs those dates after completing its proactive repayment plan in full.
Nakheel's success in overcoming financial challenges is due to the restructuring of its projects, while generating good returns, and the company expects cash flows during the current year alone to reach about nine billion dirhams ($ 2.4 billion).
According to Nakheel, it has delivered about 7,500 housing units so far to its owners after dividing its projects into short-term, contracts awarded to contractors and completed, and long-term, then launched 20 development projects according to market needs, supply and demand, with a combined investment value of about 12 billion dirhams (3. 2 billion dollars).2 billion dollars to be pumped by the company during 2011 to 2014 to develop about eight million square feet of hotels and expansions in existing projects, shopping and retail centers, while the share of hospitality projects of the total investments approved by the company amounted to a third of the total investments approved by the company worth 4 billion dirhams (1.06 billion dollars) will add in its portfolio about 2912 hotel rooms.
(Middle East)
