RAK Properties AGM approves 7.5% cash dividend

The above resolution was taken in the company's Annual General Assembly Meeting held on 2nd April 2009 at RAK Hilton Hotel in the presence of the company's Chairman and Board of Directors and senior executives.

The Chairman of the Board of Directors of RAK Properties said in his report to the AGM:

"Although the company has recorded substantial sales up to 31st December 2008, revenue recognition has been postponed until such a time that costs can be reasonably attributed to the 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 as per The IFRS rules which the company follows."

Also on the AGM's agenda were approvals of the Auditor's Report and the Balance Sheet as well as Profit and Loss statement for 2008. Other items on the agenda included the appointment of KPMG as Auditors for the year 2009.

The AGM reelected the same Board members as before: Mohamed Hasan Omran, Mubarak Matar Al Humairi, Mohamed Sultan Al Qadi, Abdul Aziz Abdulla Al Zaabi, Nawwaf Ghobash, Abdulla Yousef Al Abdulla, Mohamed Bin Thaloub Al Deri'e and Mohamed Ahmed Ruqait. RAK Properties has also added a new member - Jamal Salem Bin Darweesh.

At the request of the majority of present shareholders, the AGM approved to list a new item to its agenda as "discussion of cash dividend proposal". The AGM resolved to distribute 7.5% cash dividends to the shareholders of the company.

The Board of Directors has already recommended in their meeting held on 12th February 2009 not to distribute any dividends to shareholders due to the financial crises and the downturn of real estate markets. The board told the AGM that the Company is enjoying a strong liquidity position which exceeds Dhs700m in cash and that it is totally focused on completion of its current projects and enhance its revenue and profits through improved efficiencies for the year 2009. Due to the current financial crunch and lack of credit in the capital markets to fuel its projects, therefore the BoD proposed earlier that the company continue to rely on its internal financial strengths and strong cash flows and that a dividend need not be distributed for the year 2008.

Mr. Mohamed Sultan Al Qadi, Managing Director and CEO, said that the company achieved Dhs379m as net profit for the year ended 31st December 2008. The company's net assets stood at Dhs3.13bn as at 31st December 2008. Total current assets are Dhs1.66bn including cash and bank balance of Dhs736m with an EPS of Dhs0.19. Sales crossed the Dhs3.4bn, registering Dhs2.07bn for year ended 31st December 2008. The sales in value term have grown by Dhs988m (91%) compared to the year ended 31st December 2007.

Such sales volume reflects success of the company particularly with the current difficult situation the real estate market is experiencing and this is a good indication of the trust of investors in the company and its projects.

The development and construction works of Julfar Towers and the flagship Mina Al Arab in Ras Al Khaimah as well as RAK Tower and Julfar Residence Tower in Abu Dhabi continue to take shape and are scheduled to be completed according to schedule.