RAK Properties profit 61% higher in the first quarter
Profit at RAK Properties more than doubled in the first three months of 2017 compared with a year earlier as the company benefited from handing over properties at its Mina Al Arab complex.
The Abu Dhabi-listed property developer said profit increased to Dh39.9 million from Dh18.5m a year earlier despite the UAE’s slowing property market.
RAK Properties, the emirate’s biggest property developer, said that revenues at the company increased 61 per cent to Dh115.5m from Dh71.6m in the first quarter of 2016.
A 72 per cent increase in property sales revenues was the key reason for the hike.
RAK Properties recorded Dh102m from property sales in the first quarter of 2017, up from Dh59.2m during the same period a year earlier as the company continued to hand over 124 Flamingo Villas at the developer’s vast Mina Al Arab complex in Ras Al Khaimah.
However, the company said that rental income fell 5 per cent to Dh5.7m from Dh6m a year earlier.
At the Cityscape Abu Dhabi property exhibition last month, Mohammed Al Qadi, the chief executive of RAK Properties, said sales prices in Mina Al Arab had fallen 15 to 20 per cent since oil prices started to decline two years ago, but added that the cost of construction had also fallen.
Mr Al Qadi said rents had not fallen at its developments in RAK.
The company is currently in the process of building two new hotels, the 305-room Anantara and the 350-room InterContinental at its 43 million square feet Mina Al Arab complex, as well as a 24-storey residential tower on Abu Dhabi’s Reem Island.
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