Nakheel posts biggest net profit in its history

 
Nakheel has announced an annual net profit of Dh4.96 billion in 2016, a 13 per cent increase on the 2015 net profit of Dh4.38 billion - and the highest annual net profit ever recorded in the company's history.
Nakheel generated a net profit of Dh955 million for the last quarter of 2016, up 22 per cent on the Dh781 million posted for the same period in 2015. The record-breaking results indicate a stabilising, mature real estate sector in Dubai, and reflect the sound business and economic policies followed under the leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the company said.
The 2016 results - which take Nakheel's cumulative results since 2010 to Dh19.9 billion - follow improved year-on-year performances by Nakheel's retail, hospitality and residential leasing businesses. During 2016, Nakheel handed over 1,426 land form and built form units, primarily in Palm Jumeirah, Jumeirah Park, Al Furjan and International City. Retail revenue grew by more than 70 per cent in 2016 compared to 2015, proving that the strategy to create more company-owned, cash-generating assets is paying off.
Nakheel chairman, Ali Rashid Lootah, said: "2016 was a momentous year in which we met and completed all of our restructuring obligations by repaying all Dh4.3 billion of the trade creditors sukuk from our own resources - and recorded our highest ever net profit since Nakheel's inception. Under our ongoing commitment to maintaining the momentum in the local economy, Nakheel awarded construction contracts worth around Dh3 billion in 2016, and is set to award Dh10 billion worth this year. The future is promising and we are confident that our strategy of having a diversified business will significantly benefit Nakheel and reinforce its position as one of the world's leading real estate developers."
In 2016, Nakheel Malls further expanded its operating retail portfolio by opening its phase one extension at Ibn Battuta Mall, neighbourhood Pavilions at International City and Al Furjan and the Club Vista Mare restaurant plaza on Palm Jumeirah. These added almost 400,000 sq ft of net leasable area to previously-existing retail assets, bringing the total operational leasable space to 4.3 million square feet by the year-end. A host of other retail sector projects, which will bring Nakheel's total leasable space to 17 million square feet, is under development.
In addition, revenue from Nakheel's hospitality business jumped by 50 per cent in 2016 compared to 2015. During the year, Nakheel Hospitality commenced operations at hotels Dragon Mart and Ibn Battuta Mall, which have 623 rooms between them. Both hotels are expected to further contribute to the company's financial results during 2017 - their first full year of operation.
"A month into 2017, we have already begun handovers to customers on some of our completed projects, signed agreements with new hospitality partners, released the first of many construction tenders and announced an investment of Dh150 million in cycle tracks across our communities, while later this year we will launch sales of our new project on Palm Jumeirah, PALM 360," Lootah added. - business@khaleejtimes.com