RAK Properties posts Dh96.24m net profit

Abu Dhabi : Ras Al Khaimah Properties, or RAK Properties, posted a 33 per cent decline in second-quarter net profit to Dh96.24 million from the year ago period.

In a statement to the Abu Dhabi bourse, where the company is listed, RAK Properties said the real estate industry has started a slow recovery and "we notice sales leads flowing in for the right-priced properties".

The developer made a net profit of Dh143.31 million in the second quarter of last year.

Earnings per share fell to Dh0.048 in the second quarter of this year, compared with Dh0.072 in the corresponding period a year ago.

Net assets as of June 30 amounted to Dh3.24 billion.

Positive outlook

Rak Properties said it started in June to hand over villas and townhouses in Precinct 4 of its flagship Mina Al Arab project, with "only part of the revenue on handing over... recognised for the first time in the second-quarter financials".

Properties handed over after the close of period will be recognised in third-quarter financial statements, and the company also expects to recognise revenue from other projects in the third and fourth quarter, it said.

RAK Properties shares didn't trade yesterday. They closed on Wednesday at Dh0.41.