Dubai Investments’ profits nearly doubled in the third quarter, thanks to higher rental income and improving investment valuations. .
The conglomerate said yesterday that shareholders’ quarterly profit rose to Dh161 million, up from Dh81m last year.
Rental incomes amounted to Dh141.1m, up from Dh115.8m last year.
The valuation of its investments rebounded to Dh21.1m from a loss of Dh4.5m last year.
For the first nine months of the year, earnings reached Dh531m, more than double last year’s figure of Dh252m.
Khalid bin Kalban, Dubai Investments’ chief executive, said the strong results attested to the value and growth potential of its diversified portfolio.
“With the upswing in the economic and investment climate in the UAE and the region, we expect the momentum to continue for the rest of the year,” he said, adding the conglomerate was exploring investment opportunities in diverse sectors across the region.
Its consolidated total earnings of Dh1.9 billion for the first nine months of the year outpaces the Dh1.7bn it made for the same period last year.
At the end of September, Dubai Investments’ net worth increased to Dh8.8bn.
For the nine-month period, its annualised return on equity was 8.08 per cent, up from 3.98 per cent in 2012.
Dubai Investments, in which the Investment Corporation of Dubai owns an 11.5 per cent stake, has about 40 subsidiaries and wide-ranging joint ventures in construction, food and dairy, industrial and commercial property developments and real estate management.
Last month, the conglomerate’s real estate arm said it had started work on a series of new residential and commercial projects in Mirdif, Meydan and Jumeirah in Dubai.
The announcement of the new projects came as the firm said it had sold or leased most of the residential units in its Ritaj project.
The development, located in Dubai Investments Park, has more than 2,000 apartments in 11 blocks across a 2.58 million square feet plot.
DIC shares closed unchanged at Dh2.23 in trading yesterday. The stock has surged 162 per cent since January.