RAK Properties, the developer backed by the Ras Al Khaimah government, posted a 9.1 per cent increase in profit last year as the company benefited from handing over properties at its Mina Al Arab development in RAK despite a slowing property market.
The Abu Dhabi-listed developer said its profit last year increased to Dh174.8 million from Dh160.1m a year earlier as the company handed over its Flamingo Villas – Phase II project at its main Mina Al Arab mixed-use development.
The profit increase came on the back of a 5.9 per cent increase in revenue for the year, which rose to Dh389.5m from Dh367.8m a year earlier.
The company said revenue from the sale of properties increased by 14 per cent to Dh337.5m in 2016 from Dh296m a year earlier.
However, RAK Properties said that total net property sales for the year to the end of December 2016 fell by 71.1 per cent to Dh78m from Dh270m a year earlier.
And rental income over the same period fell slightly to Dh24m from Dh25.5m a year earlier.
RAK Properties said that its board of directors had recommended a 5 per cent dividend to shareholders.
Mohammed Sultan Al Qadi, RAK Properties’ managing director and chief executive, said the company had approved four new projects for development including a new mall and four apartment blocks in its Mina Al Arab development as well as a residential tower in Abu Dhabi.
The company said it had started enabling work for a 306-room Anantara resort hotel at its Mina Al Arab development and had awarded the contract for enabling work for a 350-room InterContinental hotel at the development. It added that 100 serviced apartments at the project would start operation by the end of March.
RAK Properties launched Mina Al Arab, a housing complex spread over 43 million square feet, in May 2006 but was forced to put more than Dh1 billion worth of projects on hold as the global financial crisis hit the industry in 2009.
The real estate markets in the Northern Emirates slowed at the end of 2015 as Dubai’s property slump and the effect of low oil prices hit sales, according to brokers.
According to Asteco, rents for new-build apartments in RAK fell by 2 per cent in the year to the end of September 2016 compared with a year earlier.
lbarnard@thenational.ae
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