Nakheel’s net profit surged 36.5 per cent to Dh767 million for the half-year ended June 30, 2012 from Dh562 million same period last year.
Revenues rose 112 per cent from Dh1,464 million to Dh3,108 million during the same period.
Nakheel’s financial performance is reflective of the continuous support of the government of Dubai and the company’s board of directors to implement a sustainable business strategy for the medium to long term and largely due to better cost and cash management.
The positive results of H1 2012 are reflective of the growth in the real estate market in Dubai where Nakheel is a major player.
Approximately 3,500 units have been delivered to customers since the beginning of the restructuring in several developments, mainly Palm Jumeirah, Jumeirah Village, International City, Al Furjan and Jumeirah Heights.
Nakheel concluded its restructuring in August 2011 with the issuance of a sukuk of Dh3.8 billion to eligible trade creditors and did a subsequent tap issuance of Dh 227 million in April 2012 as part of its overall sukuk programme. Interest and profit payments amounting to about Dh500 million have been released to the lenders since the completion of the restructuring.
Vendor commitments are being settled on a timely basis, thus complementing the delivery of the projects resulting in a reduction in vendor liabilities. Nakheel has made cash payments of about Dh8.6 billion to its trade creditors since the commencement of the restructuring.
Nakheel has reduced longer term customer liabilities by about Dh7.2 billion out of a total customer liabilities of about Dh9.9 billion through various consolidation and swap schemes offered to its customers.
Nakheel recommenced all its near term projects and started delivering properties as scheduled during FY11. Most of the properties currently under construction are expected to be handed over to customer in the intervening period to Q1 2013.
Nakheel is currently evaluating and assessing various development projects. The recently launched Palma Residences and Palm Views projects in Palm Jumeirah have been well received in the market.
The currently available leasing portfolio is almost fully leased and the two retail malls, Ibn Battuta and Dragon Mart are running at 100% occupancy. Nakheel recently launched an extension to the DM, comprising of an extension of the retail mall, a hotel and an extensive parking facility, the initial construction work for which is to be completed by 2013.
Additional projects in the pipeline include The Palm Mall and the Pointe on the Palm Jumeirah development, the extension of the Ibn Battuta Mall and the construction of the community centres at Jumeirah Park and Discovery Gardens.