Property

Dubai’s Nakheel reports 22% profit hike for Q3

Developer of the Palm Jumeriah says it made a net profit of $260m during the third quarter

Nakheel

The Dubai developer Nakheel has reported a 22% rise in net profit during the third quarter of 2016, something it said “reflects stable market conditions”.

The developer of the Palm Jumeirah said in a statement it made a net profit of AED955 million ($260m) for the period, up on the AED781 million recorded the same time last year.

That took profits for the first nine months of 2016 to AED3.91 billion, an increase of 8.3% on the AED3.61 billion recorded over the same period last year.

Nakheel said ongoing handovers of properties and its growing retail, leasing and leisure businesses all contributed to the results.

“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,” said Nakheel Chairman Ali Rashid Lootah.

“The last nine months has seen a range of significant achievements for Nakheel, including the biggest milestone in our history: settling all of the AED4.4 billion of trade creditor sukuk that was due on 25 August 2016. This was the last outstanding obligation from the financial restructuring concluded in August 2011. We thank the Government of Dubai, without whom this milestone would not have been possible, for its ongoing support. With the restructuring behind us, we can now operate with more flexibility to achieve our business and financial objectives.”

Nakheel says it currently has more than 2,300 units across various developments under construction, including 934 units nearing completion at the new Warsan Village community.

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