Nakheel net profit rises 19% to Dh4.38bn in 2015

Nakheel on Wednesday said net profit for 2015 rose by 19 per cent to Dh4.38 billion from Dh3.68 billion.

The 2015 financial results highlight another year of strong performance, reflecting the execution of a carefully planned business strategy, it said in a statement.

During the financial year, the company handed over 847 units to customers across its Palm Jumeirah, Al Furjan, International City, Jumeirah Village, Jumeirah Park and Jumeirah Heights communities.

The developer has delivered around 9,700 units between 2010 and 31 December, 2015. Strong demand across retail and residential leasing ensured that all the assets and units currently operational are occupied and increasingly in demand.

Company Chairman Ali Rashid Lootah said: “Our profits have steadily improved from Dh0.96 billion in 2010 to Dh4.38 billion in 2015, reflecting our strong commitment to deliver to our customers who have placed immense trust and confidence in us.”

2015 saw the completion of the ibis Styles hotel at Dragon Mart 2, the first phase of expansion at Dragon City which, in subsequent years will contribute significantly in diversifying its revenue streams.

In 2015, the developer awarded new contracts to the tune of Dh8 billion for various projects currently under development, including The Palm Tower, Deira Islands Night Souk, Warsan Souk and the Circle Mall.

“The company’s first hotel Dragon Mart 2 is now operational, and we expect to complete and start operations at the first phase our Ibn Battuta Mall expansion in 2016. These projects will contribute to our recurring revenue which is expected to grow in subsequent years as more projects are completed,” Lootah said.

Company’s trade creditor sukuk is due to mature in August 2016 with Nakheel stating that “it is well-placed to honour this financial commitment from its own internal resources, which will successfully conclude the last of any restructuring-related matter".

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