Nakheel, a world-leading developer and a major contributor to the realization of the Dubai vision for the 21st century, just released its Q1 2018 results, and they are looking fine.
Nakheel made a net profit of $422 million in Q1 2018, up by 5% from Q1 2017.
The master developer handed just over 200 lands, built units for customers during Q1 2018 and sold the last available villas at its new Warsan Village community, with all 934 homes now purchased.
Meanwhile, its retail, hospitality and residential leasing businesses all continued to perform robustly.
$1.3 billion worth of projects
Between January 1 and March 31 2018, Nakheel officially signed construction contracts worth $1.3 billion, among which are a $1.1 billion contract for Deira Mall at Deira Islands and a $104 million contract for its first joint venture at Deira Islands, the 800-room beachfront hotel and waterpark from Spain’s RIU Hotels and Resorts.
Q1 2018 also saw significant construction progress at several Nakheel residential, retail and hospitality projects, including The Palm Tower, Nakheel Mall and The Palm Gateway on Palm Jumeirah; Deira Islands Night Souk, Deira Mall and the RIU and Centara resorts at Deira Islands; and Warsan Souk at Warsan Village.
Nakheel’s Chairman, Ali Rashid Lootah, said: “It has been an impressive start to 2018, with our Q1 results reflecting our ongoing delivery and diversification as per our business plan, and our key role in enhancing Dubai’s real estate sector – through a growing range of residential, retail and hospitality projects – in line with government goals. As ever, we thank our leaders for their continued trust, support and belief in our company.”
How are the competitors doing?
Emaar Properties, an important real estate development company, recorded revenue growth of $1.52 billion in Q1 2018, a 37% increase over Q1 2017, the company announced on Tuesday.
According to the company’s Q1 financial results, Emaar’s net profit rose to $453 million compared to $377 million in the same period of 2017.
In 2017, Emaar Properties recorded a net operating profit of $1.553 billion, a growth of 16% over the FY 2016 net operating profit of $1.339 billion. Total revenue for FY 2017 increased by 21% to $5.122 billion, over FY 2016 revenue of $4.231 billion.
Emaar has launched many new residential launches in Dubai Creek Harbour, Emaar Beachfront, Dubai Hills Estate, Emaar South, Arabian Ranches II and Downtown Dubai, all of them reporting strong investor response. In all, Emaar launched 21 new residential destinations, with over 9,500 units, in 2017.
in April at the 22nd Annual General Meeting (AGM), Emaar Properties approved the distribution of $272.25 million as dividend to the shareholders, representing 14% of the share capital being 14 fils per share.
This is part of the exceptional cash dividend of the $1.089 billion from the proceeds of the public offering of shares of Emaar Development.
Earlier this year, Emaar and Aldar Properties announced a joint venture to develop the world’s next era of iconic destinations that will shape the UAE’s ever-evolving skyline. Emaar also launched the first residences in Emaar Beachfront, a private island destination, recording sell-out customer response of AED 1 billion in sale soon after launch.
It’s looking like a healthy construction market as Arkan Building Materials Co., a leading construction and building materials company in the UAE, announced on May 1 its financial results for the first quarter of 2018.
Its net revenue for Q1 2018 reached $68 million, an increase by 10.6% compared with $62 million for the same period of 2017.
This construction company’s net profit increased by 10.4% to $3.1 million, compared with $2.8 million in the first quarter of 2017.