H1'19 profit down 46% at Rak Properties despite higher sales
Growth in H1 2019 revenues was driven by a 24% hike in property sales compared to the first half of 2018
Abu Dhabi Securities-listed (ADX) and Ras Al Khaimah-headquartered Rak Properties announced that its net profits in H1 2019 declined by 45.5%, despite recording increased revenues that were primarily driven by increased property sales.
In the first half of 2019, net profits at the real estate company declined to $4.3m (AED15.9m) from H1 2018's $7.9m (AED29m).
Rak Properties recorded revenues of $21.4m (AED78.5m) in H1 2019, 4.4% higher than the $20.5m (AED75.4m) it recorded for six-month period ending on 30 June, 2018.
The growth in revenues was driven by increase in sale of properties in H1 2019, which increased by 24% to reach $13.9m (AED51.1m) from $11.2m (AED41.2m) in H1 2018.
Q2 2019 net profits Rak Properties grew by $3.2m (AED11.8m) from Q2 2018's $117,903 (AED4.3m), with income from property sales during the second-quarter of this year growing by $5m (AED18.9m).
In a stock market filing, Rak Properties said that construction was steadily progressing on the 205 villas and townhouses of its Marabella Villas project, as well as the 350-key Intercontinental Hotel and Resort within the $1.3bn (AED5bn) Mina Al Arab megaproject.
The developer expects to begin construction on North Bay in Mina Al Arab in Q4 2019, and plans to hand over Julphar Residence within Abu Dhabi’s Reem Island, and Gateway Residence in Mina Al Arab, in the fourth quarter of this year.
Construction of Anantara Mina Al Arab Hotel and Resort, where the number of rooms has been reduced to 174 following a redesign programme, is also progressing as planned.