RAK Properties said its first quarter profit increased more than five-fold as revenue soared.
Net profit for the three months period ending March 31 climbed to Dh64 million ($17.45m) from Dh12m in the prior-year period, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares trade. Revenue increased more than three-fold to Dh124.2m. Other income more than doubled to Dh26m.
The financial results “reflect the company's ability to adapt its work to the current conditions, and to continue developing residential and hotel projects that meet the needs of the real estate market, which has great growth opportunities,” Abdulaziz Abdullah Al Zaabi, chairman of RAK Properties, said.
RAK Properties will "also continue to develop commercial units that benefit from the growth of commercial and tourism traffic in the emirate and will explore investment opportunities to attract new segments of investors", Mr Al Zaabi added.
Property prices in the UAE are expected to stabilise in 2021 as the economy recovers from a coronavirus pandemic-induced slowdown and government initiatives spur growth.
New programmes such as visas for expatriate retirees and the expansion of the 10-year golden visa scheme to attract foreign professionals to the UAE are also expected to support the local real estate market.
RAK Properties' total assets rose to Dh5.96 billion at the end of the first quarter from Dh5.79bn at the end of December last year. Total liabilities also rose during the period.
The company said the 266-apartment Julphar Residence in Abu Dhabi as well as the Marbella Villas project in its Mina Al Arab development will be handed over to customers this year.
Mina Al Arab is the company's flagship Dh10bn development consisting of a pair of islands off the Ras Al Khaimah coast.
RAK Properties is also developing two hospitality projects at Mina Al Arab – an Intercontinental Hotel and Resort and an Anantara Mina Al Arab Hotel and Resort. The Intercontinental Hotel is scheduled to open in the fourth-quarter of this year, while Anantara Mina Al Arab hotel will start operations next year, according to the company.
It is also working on a pair of upcoming projects at Mina Al Arab known as Bay Residence and Gateway Residence 2.
“The investment in the infrastructure, lagoon revitalisation [and] marina in the Mina Al Arab master development is continuing as part of the corporate strategy to enhance the value of Mina Al Arab as a preferred destination where people aspire to live, work and enjoy,” a development update signed by RAK Properties' acting chief executive Mohammad Al Tair said.