First Dubai achieves Dhs88.67m profits in Q1 of 2009

The announcement came after a board meeting held yesterday afternoon, led by Chairman Seraj Al Baker, and attended by board members Eng. Khalid Esbaitah, Eng. Salwa Malhas, Abdullah Al Rodhan and Rasha Al Qenai.

First Dubai earned Dhs88.67m as profits for Q1 2009, with earnings per share of 8.88 fils, compared to Dhs44.48m for Q1 2008, where earnings per share amounted to 20.15 fils.

First Dubai Vice Chairman, Eng. Khalid Esbaitah, said that these results were achieved due to the great efforts made by First Dubai's parent company, Al Mazaya Holding, in sustaining profits despite the current economic downturn that has affected many companies in the property market.

He added that Al Mazaya had kept in mind the difficult time being experienced by the markets, and that a lot of assets are required to keep up with the current economic situation.

Esbaitah said that First Dubai's capital amounted to Dhs1,258m in 2008, which pushed First Dubai to continue its success and achieve substantial profits for its shareholders. Esbaitah noted that his company did not stop looking for profitable opportunities despite the economic turmoil.

By the end of Q1 2009 First Dubai's total assets reached Dhs1,779m, compared to Dhs981m for the same period in 2008, while total liabilities reached Dhs594m compared to Dhs647m for the comparative period in 2008. This reflects the solid assets of the company and the quality of its real estate assets.

Total shareholders' equity amounted to Dhs1,185m in Q1 2009, against Dhs334m during the same period last year. In addition, a portion of the profits, about Dhs75.5m, was carried over to allocations as a precautionary measure due to the current economic situation.

When asked about the sale agreement for the Sky Gardens project, Esbaitah said that his company has reached a compromise with Amlak Company, lowering the value of the agreement by 50% and exiting the previous agreement in a manner that does not affect either company's business.

This resulted in a reduction of sold area, with First Dubai keeping 40% of total building area and obtaining cash flow of Dhs164m, which greatly supported its financial situation and its ability to continue with its current and future projects.

Furthermore, the disengagement helped create new activities for the company by making available new residential units in Sky Gardens, which is based on a lease system, in addition to benefiting from the project by running the shopping mall in the project by the biggest international restaurant companies, which are currently being negotiated with.

Esbaitah went on to say that First Dubai is moving forward with its projects in Dubai, and has already achieved sales of over 98% for the Al Liwan project.

He added that development plans are being put in place for the remaining projects, including Morina Residences, located at Shams Abu Dhabi; The Villas, a residential project in Dubailand; the Dubai Residential Complex; and the Waterfront project, also in Dubai.

Finally, Esbaitah said that First Dubai and Al Mazaya Holding are currently studying plans for a merger between the two companies, and that Al Shall Consulting has been assigned to do a feasibility study on the merger.