Dubai: There was a marginal drop in net profits for Dubai Investments in the first three months — at Dh289 million — compared with the Dh298 million a year ago. Total income for the period also dropped, to Dh697 million from Dh715 million in the first quarter of 2016, though there were improvements in total assets, rising to Dh16.76 billion against Dh16.11 billion as at December 31, 2016.
According to a senior executive, the net profit drop should be taken in context.
“In first quarter of 2016, Dubai Investments reported a gain of Dh187 million on exits from subsidiaries — Marmum Dairy Farm and its distribution arm United Sales Partners,” stated Khalid Bin Kalban, Managing Director and CEO of Dubai Investments. “Excluding this one-off item, the net profit for the first quarter of 2017 has increased by Dh178 million.
“This has been driven by growth in rental income which has contributed to increase in underlying cash flows of investment properties, thereby, resulting in gain on fair valuation.”
The annualised return on equity for the period was 9.9 per cent. Dubai Investments, which is now pushing its real estate development interests to Africa and Saudi Arabia, is diversifying in sectors such as education and health care with focus on “increasing asset base, strengthening bottom-line and improving efficiency”.
Its net worth grew to Dh11.65 billion as of March 31, compared to Dh11.36 billion as at December 31, 2016.
“The company’s outlook for the remaining of 2017 is positive with various real estate developments in the pipeline,” Kalban said. “The company is in the process of finalising its participation in infrastructure development similar to Dubai Investments Park in Riyadh and is also evaluating proposals for similar opportunities being offered in Africa.”