Published On: Thu, Oct 9th, 2014

Nakheel posts profit of AED2.60 billion for first nine months of 2014

Nakheel posts profit of AED2.60 billion for first nine months of 2014

Nakheel posts profit of AED2.60 billion for first nine months of 2014

Nakheel today announced its financial results for the first nine months of 2014 as a net profit of AED 2.60 billion, higher than the company’s profit for the whole of 2013 and an increase of 47 percent on a profit of AED1.77 billion in the same period last year.

Strong revenue from property development and ongoing improvements in Nakheel’s retail, leasing and leisure business performance contributed to these robust results, the company said.

During the nine months ending 30th September 2014, Nakheel handed over 956 units to customers. Its retail and leasing businesses continued to perform strongly, with almost full occupancy of available units for lease. Nakheel’s leisure business also continued to deliver improved performance on previous years.

In the most significant event in the company’s history, Nakheel also prepaid its entire bank debt of AED7.9 billion four years ahead of time, during the first nine months of the 2014.

Nakheel currently has a trade creditor sukuk of AED 4.4 billion, due to be paid in August 2016. The company remains focussed on building cash generating assets in the retail, hospitality and residential leasing sectors to further strengthen its financial position in the future.

Commenting on the results, Nakheel Chairman, Ali Rashid Lootah, said, “We have achieved a higher profit for the first nine months of this year than we achieved throughout the whole of 2013, so we are poised to significantly exceed last year’s results in 2014. With the bank debt repaid early and new cash-generating assets coming on stream, Nakheel is well on course to further strengthen its business and financial position going forward. Our robust financial results reflect the growth in the real estate sector in Dubai, where Nakheel continues to play a strategic and important role. Since the financial year ending 2010, Nakheel has reported a year-on-year increase in net profit. Our financial performance reflects the strength of the underlying business, increasing investor trust and confidence in Nakheel and the on-going support of the Government of Dubai.”

Source : WAM News Agency for United Arab Emirates

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