Nakheel’s Q1 2014 profits rise 28% to Dhs629 million

April 10, 2014 9:36 am

Nakheel announced its results for the first quarter of 2014, posting a net profit of Dhs629 million – a 28% increase on net profit of Dhs491 million achieved in Q1 2013. Nakheel also reported revenues of Dhs1.37 billion in the first three months of the year.

The strong Q1 2014 results build on the company’s robust financial performance in 2013, when profits for the year reached Dhs2.57 billion (up 27% on 2012).

In February this year, Nakheel prepaid Dhs2.35 billion – 18 months ahead of time – of bank debt due in September 2015, further evidence of continued improvements in the company’s financial performance.

Commenting on the Q1 2014 results, Nakheel Chairman Ali Rashid Lootah said: “Our robust financial performance is more conclusive evidence of our ongoing commitment to achieve our corporate objectives ahead of time, and further proof that we continue to move forward and to win investor trust and confidence. Our Q1 2014 results build on our impressive financial performance in 2013 and are a clear indication of what lies ahead for the rest of the year in terms of our financial success.”

“We continue to deliver ahead of our business plan, enhance our existing communities and expand our business and development portfolio, laying the foundation for a long term sustainable business.

“In addition, we are well on course to further reduce our bank debt during 2014, having already paid off a substantial amount of Dhs2.35 billion a year and a half before it was due.”

During Q1 2014, Nakheel handed over 400 units – predominantly in Palm Jumeirah, Al Furjan, International City, Jumeirah Village, Jumeirah Park and Jumeirah Heights residential developments – reflecting the company’s commitment to its customers and enabling Nakheel to meet its planned objectives ahead of time.

Nakheel’s plans for the remainder of 2014 include the handover of around 1,200 units, further enhancements to its existing communities and continued investment in new projects. The developer will also complete Palma Residences on Palm Jumeirah – its first project to be announced post-restructuring – as well as its 1.9 million sq ft expansion of Dragon Mart and community retail centres at Jumeirah Park and Discovery Gardens.