Nakheel records net profit of Dh 1.9b in first nine months

Dubai: Dubai property developer Nakheel recorded a net profit of Dh1.9 billion in the last nine months, an increase of 97 per cent from Dh600 million in the same period last year, the company announced on Sunday.

It earned Dh4.5 billion in revenue in the period ending September 30, up by 126 per cent from Dh2 billion in revenues during the same period last year, it said in a statement. Nakheel attributed its results to “buoyant market conditions” in Dubai, its ability to leverage the assets it developed and its flagship project Palm Jumeirah seeing prices that crossed the pre-crisis levels, it said.

“Further, the delivery of completed units and the near 100 per cent occupancy of the retail and leasing asset portfolio have augmented the profitability of the business for the current period,” it said.

After the global crisis of 2008-2009, the company underwent a major restructuring process. Since then and until September 30, Nakheel has delivered 4,000 units to its clients mainly in Palm Jumeirah, Jumeirah Village, International City, Al Furjan and Jumeirah Heights residential developments.

“Most of the properties currently under construction are expected to be handed over to customers in the last quarter of 2012 and the subsequent year 2013,” it said.

Several projects

This year it announced several projects such as an expansion of the Dragon Mart and development projects including Palma Residences and Palm Views on Palm Jumeirah.

“More such projects are in the pipeline to cater to the growing demand for a quality product offering in the right location,” Nakheel said.

It is still meeting its restructuring commitments.

Nakheel recently completed an interest and profit payment of Dh211 million to its lenders in August this year. Cash payments to Nakheel’s trade creditors have reached Dh9.4 billion since the start of restructuring. Long-term customer liabilities have reduced by Dh7.2 billion through various consolidation and swap schemes offered to its customers.