RAK Properties dividends near 10% its share price
Developer delivers profit to shareholders after year of strong growth
RAK Properties, Ras Al Khaimah’s largest developer, has posted on the Abu Dhabi Stock Exchange that it has approved a dividend of 1.36¢ per share at its general body meeting.
The shareholders approved the proposal after a year in which the developer’s profits increased by 35.6% to $40m (2011: $29.5m), and as turnover climbed by 12.5% to $162.4m.
The rise in profits, which follows increased demand in the developer’s projects, led to the company’s share price leaping from just over $0.11 (0.4 dirhams) to just under $0.16 (0.6 dirhams) in February.
Mohamed Sultan Al Qadi, MD & CEO of RAK Properties, commented: “Shareholders expressed their satisfaction over the performance of the company in 2012.”
“We also shared ambitious plans to sustain the growth momentum of the company not only in Ras Al Khaimah but also nationwide in 2013.”
The rise in profits for 2012 fiscal year centred around Mina Al Arab, a sprawling development based around six different districts on the Ras Al Khaimah coastline, as well as of Julphar Towers and RAK Tower in Abu Dhabi.
During the year the developer handed over apartment buildings in the lagoon area of the waterfront project as well as the remaining properties at its fourth and fifth batches of villas.
The letting of retail, office and residential space also bolstered momentum, which Al Qadi said reflects the anticipated continual growth for the company in 2013.
On top of this the developer made an early settlement of a $50m loan with Ras Al Khaimah Investment and development office of the emirate.