Company awaiting approval for mixed-use Reit to list on Dubai Financial Market
Dubai Investments posts 33% drop in third-quarter net profit
Dubai Investments, a diversified company in which sovereign wealth fund Investment Corporation of Dubai has a stake, reported an annual 33 per cent drop in third quarter net profit.
Net profit attributed to owners of the company fell to Dh233.2 million in the three months to September 30, the company said in a filing to Dubai Financial Market, where its shares are traded, on Thursday.
"The results from the first nine months of 2018 demonstrates the resilience and strength of our diversified business model which has kept us in good stead through the various economic cycles. We have strengthened our asset base with the 50 per cent acquisition of Emicool and aim to further it with both organic and inorganic growth," said chief executive Khalid Bin Kalban.
The profit decline came despite a 12 per cent rise in total income to Dh841m in the third quarter. Total assets climbed to Dh19.4 billion at the end of September from Dh17bn in the year-earlier period.
There was no clear reason for the Q3 net profit decline in the filing on Thursday. The company noted an impairment loss of Dh28m for the nine-month period.
It also reported that during the period the group disposed of its 50 per cent shareholding in its existing, jointly controlled entity Dubai International Driving Centre. The disposal resulted in a gain of Dh21.2m, which is included in gain on sale of investments, according to the filing.
"We are moving ahead with our planned strategies of monetising our real estate assets and project developments which are well on target," said Mr Khalban. "We are also looking at unlocking value in certain assets by profitable exits as we continue with our objective of delivering consistent and sustainable returns to our shareholders."
Dubai Investments is awaiting regulatory approval to establish a mixed-use Reit with an initial asset size of Dh3bn that would be floated on the Dubai bourse, making it the first ever Reit to list on DFM.
The Reit would comprise hospitals, hotels, shopping malls, warehousing, logistics, residential, offices and other commercial property from across the UAE. Real estate accounts for around 68 per cent of Dubai Investments’ total assets.