(MENAFN - Khaleej Times) Nakheel expects more than 15 per cent growth in its annual profit for 2013, according to its chairman Ali Rashid Lootah.
The developer of palm-shaped islands declared Dh2 billion profits for 2012 and it's likely to announce more than Dh2.3 billion profits for 2013. Strong recovery in Dubai real estate market helped the property developer to earn significant profit growth in recent quarters.
The company posted 58 per cent year-on-year growth in nine-month profit for 2013. It may declare over Dh530 million earnings for the fourth quarter of 2013.
"Our growth target is 15 per cent. We think our results will be better," Lootah told reporters at a news conference on Saturday.
Over the past 28 months, since the successful completion of the financial restructuring, Nakheel has continued its focus on delivering the revised business plan and creating a long-term sustainable business.
During this period, both revenues and net profits have doubled from financial year 2011. Not only has the company returned to profitability, it has witnessed an almost threefold increase in cash flows generated in last year compared to 2011.
"This strong financial performance is the result of Nakheel recommencing all 10 of its 'Near Term' projects, giving the required impetus to the local real estate market by providing opportunities for local contractors to restart construction activity in Dubai," Lootah said.
"The result of these efforts is borne out by the fact that by the end of financial year 2013, Nakheel had handed over 7,000 units to customers and paid amounts aggregating to Dh12.3 billion to various contractors, creditors and suppliers since the restructuring began in November 2009.
"Our financial performance has significantly exceeded the revised business plan, leading to improvements of approximately Dh22 billion to date over the plan period," he said.
Nakheel is well on its way to establishing its leading position in the local and regional real estate sector, the chairman said.
"We continue to successfully deliver on our revised business plan and to earn trust and confidence among investors," he said.
With the objective of increasing its portfolio of cash-generating assets, Nakheel has several retail and leasing units under construction which, when complete, will more than double the existing net retail leasable area from 2.5 million square feet to about 5.6 million square feet.
The number of leasing units is also set to increase from the current 16,500 to about 17,000 when completed.
In addition, the company is developing four hotels with a combined total of 1,200 rooms that will progressively come on stream this year, with more under evaluation.