(MENAFN- Khaleej Times) Dubai property developer Nakheel reported a 36 per cent increase in first quarter net profit on Wednesday, in the wake of the delivery of long-delayed units to customers as residential property prices and demand rebounded.
The government-owned developer reported a profit of Dh491 million in the quarter compared to Dh362 million in the corresponding 2012 period, Nakheel said in an emailed statement.
Revenue for the first quarter surged 62 per cent to Dh2.2 billion as Nakheel delivered 770 homes during the period and is on track to deliver an estimated 3,000 units in 2013.
"Our robust results for the first quarter speak for themselves. Not only do they highlight the ongoing support of the government of Dubai and our commitment to delivering our post restructuring plan, they also clearly reflect the continual recovery of Dubai's real estate market and solid investor confidence in Nakheel and its projects," Nakheel chairman Ali Rashid Lootah said in the statement.
"Q1 2013 has been a hive of activity for Nakheel, with continued delivery to customers and ongoing construction of a growing number of residential and retail projects. We remain focused on implementing our sustainable, realistic long term business strategy, which is fundamental to the growth of Dubai's real estate sector," said the statement. Nakheel continues to complete its near-term projects and has now delivered around 5,400 homes, including around 770 in Q1 2013, to customers since completing its restructuring in late 2011.
Handovers are mainly in Nakheel's Palm Jumeirah, Al Furjan, International City, Jumeirah Village, Jumeirah Park and Jumeirah Heights communities. In addition to development, Nakheel's retail, leasing and leisure segments also recorded encouraging growth and contributed positively to the financial results, said Lootah.
Nakheel's expanding new project pipeline includes Nakheel Mall, The Pointe at Palm Jumeirah and the extension of Ibn Battuta Mall. Several other residential and retail projects â€" including Palma Residences, Palm Views, Jumeirah Park, Dragon Mart Phase 2 and community centres at Discovery Gardens and Jumeirah Park â€" are under construction, and Nakheel is currently evaluating a number of additional projects that will add value to its existing communities.
Nakheel said it also continues to focus on meeting its restructuring commitments to stakeholders. By the end of the 2013 first quarter, the developer had made interest payments of Dh206 million to bank lenders and issued Dh120 million for the fourth tranche of its trade creditor sukuk. Since restructuring, Nakheel has paid over Dh1 billion in loan interest and sukuk profit payments and made cash payments of around Dh11 billion to trade creditors and contractors.
In March Nakheel revealed that it had delivered almost 95 per cent of villas at Al Furjan, its newest residential community in Dubai. The developer said nearly 760 villas had been completed ready for hand over to customers, with the remaining 61 due for delivery by May 2013.
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