Dubai Investments sees first-half 2020 net profit drop to Dh205m

But company says 2019 numbers were boosted by one-off transaction

Last updated: August 03, 2020 | 08:38

2 MIN READ

Dubai Investments says its latest financials show that being a diversified company has helped it stave off the worst effects from the pandemic.

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Dubai: Dubai Investments recorded Dh205 million in net profits for the first six months of 2020, a sharp drop from the Dh353 million from a year ago.

But the company, which is in multiple sectors, said the Dh353 million was based on profits from a one-off transaction. If one were to ignore that, the first-half 2020 results show “resilience”.

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“Dubai Investments strategy of diversification coupled with a robust business model have been instrumental in successfully facing down the challenges raised by the spread of pandemic,” said Khalid Bin Kalban, Vice-Chairman and CEO.

“We have been carefully reviewing our cost structure with an eye on optimization whilst continuing with our efforts aimed at sustained long-term growth. The Group is focused on being adaptable and flexible in the current environment and is geared up to take advantage of opportunities that come our way.”

What will worry the owner and operator of multiple real estate assets, including Dubai Investments Park, is the fall in rental income to Dh431.97 million for the first-half and down from Dh463.25 million. Revenues for the first-half came to Dh1.13 billion, a slide from the Dh1.43 billion a year ago. For the April to end June period, when the COVID-19 outbreak was at its peak, Dubai Investments’ revenues were Dh672.31 million, and down from Dh724.53 million a year ago.