RAK Properties records net profit of Dhs114.58m during first three months of 2008

The first quarter profits indicate earnings per share (EPS) of Dhs0.057 and marks an increase of 11% over the corresponding period in 2007.

The company also concluded Dhs564mn worth of sales in residential and commercial units during the first three months of 2008, thus registering an increase of 232 % over the corresponding period of the previous year. Although the company has recorded substantial sales during this period, revenue recognition has been postponed until such time costs can be reasonably attributed to individual units and beneficial ownership has been transferred to buyers. As a result the Profit and Loss account does not show the revenue from sales.

"Our financial results for the first quarter of 2008 are highly encouraging and underline our budgeted projections. It is also an endorsement of the management's strategy of identifying the best opportunities and low risk projects that ensure sustained returns and meet shareholder's expectations," said Mohammed Sultan Al Qadi, Managing Director & CEO of RAK Properties.

"RAK Properties supports the vision of His Highness Sheikh Saud Bin Saqr Al Qasimi, Deputy Ruler and Crown Prince of Ras Al Khaimah, to promote economic growth and transform the emirate into one of the region's leading destinations for tourism and real estate investment. The success we have achieved encourages us to continue in the same direction by initiating leading projects and forming strategic partnerships," he added.

The RAK Properties investment portfolio includes residential, commercial and leisure facilities. Julfar Towers, the company's maiden initiative launched in 2006, is a business and residential project of Dhs500m, with two towers rising up to 43 floors. Mina Al Arab, the company's second project, is a mixed-use waterfront resort community that will epitomise the 'Living Closer to Nature' motto of RAK Properties. Spread over 30 million sq. feet and with an estimated cost of Dhs10bn, the project was announced in 2006. RAK Tower, an Dhs300m project launched by RAK Properties in 2007, is a residential tower in Abu Dhabi comprising 43 floors.