Nakheel announced its financial results for the first half of 2014: a net profit of Dhs1.85 billion – an increase of 54% on a net profit of Dhs1.20 billion in the same period in 2013.
Strong revenue from property development together with improving performance in Nakheel’s retail, leasing and leisure businesses contributed to these robust results, the company said.
Nakheel’s half year results announcement comes two weeks after the company confirmed that it will prepay all of Dhs7.9 billion owed in bank debt in August this year – nearly four years ahead of the last installment due in March 2018.
During the six months ending 30 June 2014, Nakheel handed over 627 units to customers, while the retail and leasing businesses witnessed almost full occupancy of the available units for lease. Nakheel’s leisure business also saw an improved performance on previous years.
Ali Rashid Lootah, Chairman of Nakheel, said: “These robust financial results reflect the growth witnessed in the real estate sector in Dubai, where Nakheel continues to play a strategic 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 on-going support of the Government of Dubai.”
Nakheel is currently developing a diverse range of new projects in the residential, retail, leasing and hospitality sectors. Among them are Nakheel Mall; The Pointe; Deira Islands Mall; Deira Islands Night Souk; extensions to Dragon Mart and Ibn Battuta; community retail centres at Jumeirah Park, Al Furjan, International City, Discovery Gardens and Badrah; residential and retail leasing units at Warsan Village and a new community of 1,000 villas for lease. Nakheel is also set to build 10 hotels – from five star luxury establishments to simpler, budget-style accommodation – over the next five years. Among them are The Palm Tower on Palm Jumeirah, several establishments at Deira Islands and hotels at Dragon Mart and Ibn Battuta.
Nakheel’s Palma Residences complex on Palm Jumeirah, Dragon Mart phase two, community centres at Discovery Gardens and Jumeirah Park and a three star hotel at Dragon Mart are due for completion this year.
Chairman Ali Rashid Lootah said: “With the bank debt repaid ahead of time and new cash generating assets coming on stream, Nakheel is well on course to further strengthen its business and financial position going forward.”