Abu Dhabi: Reem Investments, the master-developer of Najmat on Reem Island and Rawdhat on Airport Road, posted a Dh785-million profit for 2009 Sunday and said real estate acquisitions in the UAE and the Gulf are on the radar this year.
The financial performance translated to a return on equity of 19 per cent and the company reported a book value of Dh29.88 per share, an increase of 17 per cent from 2008. The directors approved a final dividend distribution of 10 per cent of par value, equalling Dh1 per share.
Chairman Shaikh Tahnoun Bin Zayed Al Nahyan said the company's financial strength came from its status as a zero-debt company, setting it apart and "unimpeded by the difficult financial environment".
Analysts said the large profit for last year may have to do with the fact that not all land sales made in 2007 and 2008 would have been in the company's balance sheet until 2009, as they can only be booked when a related percentage of the infrastructure is complete. "With infrastructure works progressing they would have accounted for earlier revenues as the land income can now be recognised," said Safeena Rangooni Lakdawala, Senior Manager of Research at Dubai-based Investment Boutique.
Reem Investments includes its divisions Reem Capital and Reem Real Estate. Abdul Hamid M. Saeed, the developer's managing director, said: "Reem adopted a conservative posture in last year's operations. We have been patient with regards to investments and focused on our core competency in the real estate sector."
Company officials did not respond to queries.
The developer claims that its two mega-projects are sticking to their original timelines. Najmat, which covers well over 20 million square feet, shares Reem Island with developers Tamouh and Sorouh. Tamouh is handing over its Marina Square and Sorouh its Sun & Sky Towers on Shams Abu Dhabi later this year. "By end-2010, a substantial segment of the Najmat project will come to fruition, and on Rawdhat, more individual plot owners will be able to break ground on their respective projects in the second quarter of 2010," Shaikh Tahnoun said in a statement.
"In 2010, as a result of the tight credit conditions, we envisage that there will be opportunities to acquire assets with good yields in the UAE and GCC. This will allow Reem to move a step closer to its vision of being one of the foremost real estate entities in the UAE," Saeed said.
