Nakheel announces Dhs2bn profit for 2012

Nakheel's strong financial performance in 2012 underpins the continued support of the Government of Dubai and the commitment by Nakheel management in implementing its post-restructuring business plan, and is a clear sign of a recovery in Dubai's real estate sector. Nakheel's total profit since 2010 now stands at Dhs4.3bn.

Nakheel has handed over approximately 4,600 units since the start of its restructure until December 2012, predominantly in Palm Jumeirah, Al Furjan, International City, Jumeirah Village, Jumeirah Park, and Jumeirah Heights residential developments. Of these, 2857 were handed over in 2012.

Other milestones for Nakheel in 2012:
•Construction contracts worth more than Dhs1.4bn awarded for new projects including Dragon Mart Phase 2, Palma Residences, Palm Views, Jumeirah Park Legacy Villas and community/retail centres at Jumeirah Park and Discovery Gardens.

•Launch of Jumeirah Village Circle villas (contracts to be awarded in 2013).

•Impressive growth in leasing revenue, with retail revenue up 23% and residential revenue up 17% on 2011. Retail leasing levels at Dragon Mart and Ibn Battuta Mall were at almost 100%, while leases for residential and retail units at key Nakheel communities, including International City, Discovery Gardens and Garden View Villas, rose to 92%.

•Opening of Al Ittihad Park - a 1.1 million sqft communal garden with plants indigenous to the UAE - on Palm Jumeirah.

While expanding its development activities in 2012, Nakheel remained focused on meeting its restructuring commitments to stakeholders. The company completed interest and profit payments of around Dhs800m to all lenders in 2012, and has made cash payments of around Dhs10bn to various trade creditors and contractors since the start of its restructure.

Long term customer liabilities have been significantly reduced - amicably - by around Dhs7.3bn through consolidation and swap schemes offered to a large number of customers.

Nakheel Chairman, Ali Rashid Lootah, said, "2012 has been a hugely successful year for Nakheel, building on the momentum achieved in 2011. Our financial performance reflects the continuous support and commitment by the Government of Dubai and Nakheel's Board of Directors to implement a sustainable, realistic long term business strategy. It is also proof that investor confidence is back, and that Nakheel is firmly moving forward and delivering."

"Our development initiatives to date are aligned with our corporate objective of creating a long term sustainable business as well as contributing to the growth of Dubai's real estate sector. We are diversifying our portfolio by seizing on growth opportunities in every sector of the market, and are recruiting in line with our expansion," he added.

"On behalf of the Nakheel Board, I thank Nakheel staff and management for their continued support and team work in delivering these impressive results," he concluded.

Nakheel's plans for 2013 include the handover of around 3,000 units to customers, investment of Dhs6.5bn in new projects to be completed over a three year period, expansion of Ibn Battuta Mall and continued enhancement of existing communities with local facilities including shopping centres and parks.