Thursday, Feb 23, 2012
DUBAI (Zawya Dow Jones)--RAK Properties (RAKPROP.AD), the largest real estate developer in the northern emirate of Ras Al Khaimah, said Thursday its full-year 2011 net profit fell 42% as it wrote down the fair value of its plots and properties.
The company made a profit of 108.42 million U.A.E. dirhams ($29.54 million) in 2011, compared with AED187.35 million a year earlier, RAK Properties said in a statement posted on the Abu Dhabi bourse website.
The company's revenue in 2011 rose to AED520.57 million versus AED151.3 million a year earlier, but it saw a sharp decline in fair value of its land plots in Mina Al Arab and Ras Al Khaimah--also referred to as government grants--to AED58 million from AED205.29 million.
"The Government Grant recognition for the year has been limited to AED58 million [2011] and the recognition of balance land grant has been deferred due to certain changes in the Mina Al Arab development plan," the company said.
RAK Properties said it has finalized the handing over plan for the 20 lagoon buildings comprising of 808 apartments in the Mina Al Arab and leased out the properties allocated for the leasing income portfolio comprises of residential, commercial and retail properties in the Mina Al Arab and the Julphar Towers.
"The revenue from delivery of the apartments will be recognized in the year 2012," the company said.
-By Tahani Karrar-Lewsley, Dow Jones Newswires; +9714 446-1692; Tahani.Karrar@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
23-02-12 0746GMT
