Nakheel posts Dh1.48 billion Q1 profit

Dubai - The first quarter results followed an year of record-breaking performance by the developer

Nakheel, one of the world's leading developers, announced on Wednesday a net profit of Dh1.48 billion for 2017 first quarter of 2017, marking a slight increase compared to same 2016 period's Dh1.47 billion profit.  
The first quarter results followed an year of record-breaking performance by the developer of some of the world's iconic projects including Palm Jumeirah. The three-month profit is in line with company forecasts, the master developer said in a statement.  
In the first quarter, Nakheel handed over 412 plots and apartments to customers, with its retail, hospitality and residential leasing businesses continuing to perform solidly. In the first quarter, Nakheel also awarded construction contracts worth Dh5 billion, signed agreements with two Thai hotel operators, opened its fifth retail Pavilion and announced an investment of Dh150 million to create a new network of cycle routes across Dubai. Nakheel Chairman Ali Rashid Lootah said the first quarter results are in line expectations. 
"We continue to execute our long term business plan, in turn contributing positively to Dubai's real estate sector. As ever, we thank our investors and the Government of Dubai for their ongoing trust in and support for Nakheel."  
The developer said it is set to award another Dh4 billion worth of contracts in the second quarter while continuing to expand its retail, hospitality and residential leasing businesses to deliver a range of new projects in line with the Government of Dubai's 2021 vision.  For 2016, Nakheel recorded a net profit of Dh4.96 billion, highest annual net profits in its history, marking a 13 per cent increase on the 2015 net profit of Dh4.38 billion.  
Nakheel generated a net profit of Dh955 million for the last quarter of 2016 - up 22 per cent on the Dh781 million posted for the same period in 2015.  
The 2016 results - which take Nakheel's cumulative results since 2010 to Dh19.9 billion - follow improved year-on-year performances by Nakheel's retail, hospitality and residential leasing businesses.
The developer said it has four million square feet of retail space in operation with another 13 million sq ft under development.
Two Nakheel hotels are operational with 16 more under way, and its residential leasing portfolio is set to double to over 37,000 units under ongoing expansion plans.
On Monday, Nakheel broke ground on a new, 375-room hotel at Ibn Battuta Mall, with a total project value of Dh240 million.
The ground-breaking ceremony - Nakheel's second in a week - comes a month after the company handed a construction contract worth Dh184.5 million to Dubai-based Parkway International Contracting LLC to build the hotel, which will be operated by Thailand's Minor Hotel Group under the Avani brand.
Set for delivery in 2019, the Avani is the second Nakheel hotel at Ibn Battuta Mall and one of 18 in the company's growing hospitality project portfolio. Nakheel is investing Dh5 billion in the sector, bringing over 5,800 rooms and serviced apartments to Dubai in line with the government's 2021 vision.  
Nakheel's 18-strong hospitality portfolio includes hotels and serviced apartment buildings - from luxury to more modest accommodation - across Dubai. Two are already operational, with the rest at various stages of construction and development.
issacjohn@khaleejtimes.com

• Dubai