RAK Properties' profits jump 433% to $17.5mln

The company's revenues grew by 244%

  
RAK Properties Launches VERDE Villas at Hayat Island. Image used for illustrative purpose.

RAK Properties Launches VERDE Villas at Hayat Island. Image used for illustrative purpose.

RAK Properties /Handout via Thomson Reuters Zawya

RAK Properties has announced that its profits have increased by 433 per cent during the first quarter of 2021.

The company has recorded a profit total of Dh64.14 million, compared to Dh12.04 million for the same period in 2020. The increase reflects the success of RAK Properties’ strategy in overcoming the challenges resulting from the exceptional circumstances faced the world over, and transforming them into opportunities that benefit both investors and shareholders.

The company has also recorded a rise in the value of assets by 2.9 per cent to reach Dh5.97 billion, compared to Dh5.8 billion in the first quarter of 2020, which is a result of increased investments in the development of hotel and residential projects in various locations across Ras Al Khaimah and Abu Dhabi. Additionally, the company's revenues grew by 244 per cent to reach Dh124.3 million in the first quarter of 2021, in comparison to Dh36.14 million in the first quarter of 2020.

Abdulaziz Abdullah Al Zaabi, chairman of RAK Properties, said: “We are extremely pleased to announce these strong financial results, which reflect the company's ability to adapt its work to the current conditions, and to continue developing residential and hotel projects that meet the needs of the real estate market, which has great growth opportunities and provide best value for investors and shareholders alike."

Al Zaabi pointed out that RAK Properties is optimistic about its ability to achieve more positive results during the coming period, and the company is keen to continue providing residential destinations that give residents a comfortable, safe, and modern lifestyle. He affirmed that RAK Properties will also continue to develop commercial units that benefit from the growth of commercial and tourism traffic in the emirate and will explore investment opportunities to attract new segments of investors.”

The company revealed that construction is continuing in its two residential projects: Marbella Villas in Mina Al Arab, which includes 205 villas and townhouses, and Julphar Residence on Al Reem Island in Abu Dhabi, which includes 266 apartments. The two projects are expected to be delivered later this year. There are also two future projects underway, namely the Bay Residence on Hayat Island in Mina Al Arab, and the Gateway Residence 2, which is a residential tower also situated on Hayat Island.

As for projects under the company’s hospitality umbrella, construction operations are currently underway – significantly a number of 5-star hotel projects, and it is expected that the Intercontinental Resort and Hotel in Mina Al Arab will start operating activities during the last quarter of 2021. It is also expected that the operational activities of the Anantara Mina Hotel and Resort will commence in 2022. These two developments will add significant value to the company’s revenue stream for subsequent years.

 

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