Dubai’s Nakheel reports 22% rise in Q3 net profit

Dubai developer Nakheel announced that it recorded a net profit of Dhs955m for the third quarter of 2016 – up 22 per cent compared to Dhs781m in Q3 2015.

The company also reported that net profit in the first nine months of 2016 reached Dhs3.91bn – an increase of 8.3 per cent compared to Dhs3.61bn during the same period last year.

The growth in net profit reflects stable market conditions, Nakheel said in a statement.

The company credited its development business, its ongoing handovers of properties to customers, and its retail, leasing and leisure businesses for the rise in profit.

Nakheel currently has more than 2,300 units at various development projects under construction, including 934 units nearing completion at the new Warsan Village community.

It is also investing around Dhs40bn in expanding its retail, hospitality and residential leasing portfolios with several new projects under way.

Nakheel has around 13 million sq ft of leasable space under development at new retail projects across Dubai, while its hospitality portfolio comprises 16 hotels and serviced apartment complexes with over 5,200 rooms.

The company is also doubling its residential leasing stock by adding over 18,000 new units to its portfolio.

Overall, Nakheel aims to receive Dhs7.7bn from recurring income by 2020.

Nakheel chairman Ali Rashid Lootah said: “The growth in our net profit for the first nine months of 2016 compared to the same period in 2015 is a sign of a stable and mature local real estate market. The results also reflect positively on our business strategy to invest in our income-generating asset portfolio. We expect to further consolidate on our position and finish the year on an even stronger note.

“The last nine months has seen a range of significant achievements for Nakheel, including the biggest milestone in our history: settling all of the Dhs4.4bn of trade creditor sukuk that was due on August 25 2016. This was the last outstanding obligation from the financial restructuring concluded in August 2011.

“With the restructuring behind us, we can now operate with more flexibility to achieve our business and financial objectives.”

Read more: Nakheel says it is now a ‘debt-free’ company