Dubai's Nakheel reports $400m profit in Q1 2016
All of Nakheel's core businesses contributed to the first quarter results, which are in line with company forecasts
Dubai developer Nakheel reported a net profit of $400m (AED1.47bn), 8% higher than the net profit of $367m (AED1.35bn) in Q1 2015.
Nakheel handed over 536 completed units to customers during the first three months of the year, with its retail, residential leasing and hospitality businesses all showing a strong performance.
All of these businesses together contributed to the first quarter results, which are in line with company forecasts, the company said.
During the first quarter of 2016, Nakheel officially opened Dragon Mart 2, almost doubling the size of the Dragon Mart mall complex to 204,386 sqm of leasable space.
Q1 2016 also saw the opening of Nakheel’s first hotel - a 251 room property, attached to Dragon Mart 2, managed by Accor.
Nakheel is on target to officially open a 27,870 sqm extension to its flagship Ibn Battuta Mall in Q2 2016, and will continue to grow its portfolio of retail and residential leasing assets.
A number of projects in the retail, hospitality and residential leasing sectors are under construction by Nakheel at Palm Jumeirah, Deira Islands, Jumeirah Village, Warsan Village and other areas across Dubai.
Nakheel chairman Ali Rashid Lootah said: “Our first quarter results are very encouraging and reflect investor confidence in Dubai and its real estate sector. We remain confident and will continue to execute our business plan, in turn contributing positively to Dubai’s real estate sector in line with the Government’s 2021 vision.
“Our strategy to create more cash-generating assets and strengthening Nakheel’s asset base to further boost our business and financial results in the coming years is beginning to yield results. We thank our investors for their increasing trust and confidence in Nakheel and the Government of Dubai for their on-going support.”