Real estate development company RAK Properties reported a 141 per cent growth in revenue in the first quarter of 2023 at Dh258.58 million, compared to Dh107.25 million in the same period last year.
Revenue was driven by strong customer demand for new project launches in Abu Dhabi and Ras Al Khaimah, and handover of residential developments to owners. The company’s hospitality assets have also added significant value to revenue streams and strengthened the balance sheet.
Net profit for the period stood at Dh44.60 million compared to Dh30.48 million in the year-ago period, up over 40 per cent.
Sameh Al Muhtadi, CEO of RAK Properties, said: “This set of results signals the beginning of a new phase of growth driven by our re-envisioned development pipeline. Sales from our launch of 679 units in Q1 have been driven by enthusiastic demand from end-users locally and international investors.
“We have a very exciting period coming up, with further new launches in Q2 and the second half of the year. Our primary focus is on introducing new residential developments, forging partnerships that enrich our communities and focus on transformation projects within existing locations throughout the emirate of RAK. We remain committed to pursuing growth opportunities and investing in strategic acquisitions. With a robust liquidity position supporting us, we are strongly placed to successfully execute our long-term growth strategy.
During the period, the company sold out all of the released units in its Julphar Residence apartment building located on Reem Island in Abu Dhabi and also commenced the hand-over to end users.
Strong demand for beachfront properties in Ras Al Khaimah reflected in positive investor and end-user demand for Bay Residences, located on Hayat Island, Mina Al Arab. The apartment buildings launched as part of Bay Residences Phase 1 were fully sold out and their construction is currently underway and on schedule. The Bay Residences Phase 2 launch received a similar response with two apartment buildings consisting of 324 apartments and 226 units has been sold so far.
Construction is ongoing for Gateway Residence 2, a 146-apartment residential building located on Hayat Island and the sales are in process.
The sales programme for Marbella Villa Phase 2 comprising of 89 villas and townhouses was launched during the quarter.
In the hospitality segment, the developer successfully opened the 351-key 5-star Intercontinental Ras Al Khaimah Mina Al Arab Resort and SPA during 2022. The construction of a second 5-star Resort on Hayat Island, Anantara Mina Al Arab Hotel and Resort, is on-track. The 174 key exclusive luxury resort with Maldivian style overwater villas is scheduled to open in late 2023.
