UAE: Nakheel reports annual net profits of $1.35bn
Nakheel awarded construction contracts worth around $820mn (AED3bn) in 2016, and is set to award $2.72bn (AED10bn) worth this year
Master developer, Nakheel, has reported its highest annual net profits in the company’s history of $1.35bn (AED4.96bn) in 2016 – a 13% increase on the 2015 net profit of $1.19bn (AED4.38bn).
Nakheel generated a net profit of $260m (AED955m) for the last quarter of 2016 – up 22% on the $212m (AED781m) posted for the same period in 2015.
The 2016 results – which take Nakheel’s cumulative results since 2010 to $5.42bn (AED19.9bn) – follow improved year-on-year performances by Nakheel’s retail, hospitality, and residential leasing businesses.
During 2016, Nakheel handed over 1,426 land form and built form units, primarily in Palm Jumeirah, Jumeirah Park, Al Furjan, and International City.
Retail revenue grew by more than 70% in 2016 compared to 2015. Revenue from Nakheel’s hospitality business jumped by 50% in 2016 compared to 2015.
Residential leasing also performed well in 2016, with occupancy rates remaining at almost 100%.
With more residential leasing expected to become operational in 2017, this sector will continue to provide a steady source of revenue for Nakheel.
Ali Rashid Lootah, chairman of Nakheel, said: “2016 was a momentous year in which we met and completed all of our restructuring obligations by repaying all $1.17bn (AED4.3bn) of the trade creditors’ sukuk from our own resources – and recorded our highest ever net profit since Nakheel’s inception.
“Under our ongoing commitment to maintaining the momentum in the local economy, Nakheel awarded construction contracts worth around $820mn (AED3bn) in 2016, and is set to award $2.72bn (AED10bn) worth this year.
“The future is promising and we are confident that our strategy of having a diversified business will significantly benefit Nakheel and reinforce its position as one of the world’s leading real estate developers.
“We are currently working towards completing our healthy pipeline of projects and making them operational in the next few years, starting with The Pointe at Palm Jumeirah, one of our key hospitality and retail destinations, which is due to open this year.
“A month into 2017, we have already begun handovers to customers on some of our completed projects, signed agreements with new hospitality partners, released the first of many construction tenders and announced an investment of $40.8m (AED150m) in cycle tracks across our communities, while later this year we will launch sales of our new project on Palm Jumeirah, Palm 360.”