RAK Properties profit edges up to Dh155.7 million in 2014

RAK Properties' total assets in 2014 reached Dh4.7 billion, nearly unchanged from the total assets recorded in 2013.

RAK Properties posted a 3.4 per cent increase in net profit last year, buoyed by strong revenues in the fourth quarter, the company said on Sunday.

Net profits last year edged up to Dh155.74 million from Dh151m in 2013, the firm said. Revenues in the fourth quarter of last year were Dh297.8m.

The company did not give a comparable figure for the fourth quarter of 2013, nor did it give fourth-quarter net profit figures.

“The results of the fourth quarter of 2014 also reflect the increased level of investments being made in Ras Al Khaimah as it continues to attract regional and international investors to take advantage of its many potential opportunities,” said Mohammed Sultan Al Qadi, the managing director and chief executive.

Rental rates in Ras Al Khaimah grew 5 per cent in the third quarter of last year, according to the property broker Asteco.

Shares in RAK Properties last traded at 78 fils each. Over the past year they have ranged from a high of Dh1.52 in April to a low of 57 fils in December.

The company’s total assets last year reached Dh4.7 billion, nearly unchanged from the total assets recorded in 2013.

“2014 has seen an impressive growth in our business portfolio, in conjunction with the allocation of a budget of Dh1bn to develop and expand the Mina Al Arab development project, and the completion of new facilities that include an environmental hotel and a set of residential villas as part of projects that are being implemented during the current year,” said Mr Al Qadi.

“There is no doubt that the introduction of Flamingo Villas and Bermuda Villas have contributed greatly in enhancing our performance levels. The recent results have prompted us to continue our intensive efforts to launch new projects and deliver Flamingo Villas by the end of this year, in line with our pursuit to develop the urban landscape of Ras Al Khaimah.”

In 2013, Rak Properties launched Flamingo Villas, consisting of 104 villas to be built in the Dh10bn Mina Al Arab project. In November last year, the firm began building the 157 properties of Bermuda villas project in Mina Al Arab.

Demand for residential property in the Northern Emirates is expected to slow this year because of the stabilisation of the property market in Dubai, which reflects on the property market in Ras Al Khaimah, Asteco said in a third- quarter report for the Northern Emirates.

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