Dubai developer Nakheel reports flat Q1 net profit

Dubai developer Nakheel announced a net profit of Dhs1.48bn for the first quarter of 2017, almost flat compared to its profit of Dhs1.47bn posted in Q1 2016.

The three-month profit “is in line” with company forecasts, Nakheel said in a statement.

The company said it handed over 412 land form and built form units during Q1 2017, and also awarded construction contracts worth Dhs5bn.

It also signed agreements with two Thai hotel operators – including Centara and Minor Hotels group for projects at Deira Islands and Ibn Battuta Mall respectively during the first three months, and announced an investment of Dhs150m for a network of cycle routes across Dubai.

Nakheel chairman Ali Rashid Lootah said: “Our first quarter results are as forecast. We continue to execute our long term business plan.”

The developer said it plans to continue expanding its retail, hospitality and residential leasing businesses.

Currently, Nakheel has four million square feet of retail space in operation with another 13 million sq ft under development. Two Nakheel hotels are operational with 16 more under way, and its residential leasing portfolio is set to double to over 37,000 units under ongoing expansion plans.

The developer is also set to award another Dhs4bn worth of contracts in Q2 2017, the statement added.

Speaking to journalists earlier this month, Lootah confirmed that Nakheel would exceed its previous target of awarding Dhs10bn worth of contracts this year. It could reach up to Dhs12bn, he stated.

Lootah also asserted that the company had not seen a slowdown in the market and had not “reduced prices”.

“We don’t see any drop in home prices. There has been no drastic or desperate sales in the market,” he said.

He also confirmed that Nakheel was looking to attract more international investors, focussing on markets such as China and India.

“We have developed demand from overseas and have also seen some sales of both built property and land following our roadshows [in Asia],” he said.

Looking ahead, the company’s main focus will remain on completing Deira Islands, its 15.3 sq km waterfront development.

“We are putting in a lot of investment there, and before the end of this year, we will start the sale of plots on the first two islands,” Lootah added.

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