55% drop in profit for RAK Properties

RAK Properties has reported a Dh170 million net profit for 2009, a 55 per cent drop compared to a net profit of Dh379.4m for 2008.

Earnings per share for 2009 declined to Dh0.09 from Dh0.19 in the previous year. For the fourth quarter of 2009, it posted a net loss of Dh11.5 million.

"The revenue from sale was not recognised during the year 2009 due to non delivery of properties, which we expect to start in 2010. The total equity on December 31, 2009, amounts to Dh3.14 billion," RAK Properties said in a statement to the Abu Dhabi Securities Exchange.

The company expects to start recognising revenues this year due to delivery of properties in its projects of Julfar Towers, RAK Tower, and units in the Mina Al Arab Precinct 4, the statement said.

Rak Properties is also closely monitoring investment and there will be strategic exit from certain investments during 2010, according to the statement.

"The year 2009 was a testing time for the real estate industry. The financial crisis coupled with tumbling home prices, affected the primary sales performance severely," it said.

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