RAK Properties on course to hit profit estimate as second-quarter results unveiled

RAK Properties’ Bermuda Villas and Flamingo Villas projects would be located at Mina Al Arab, above. Pawan Singh / The National

RAK Properties recorded profit of Dh52 million and revenue of Dh149m in the first half of the year, in line with analyst estimates and flat year-on-year.

Second quarter revenue stood at Dh63.6m – mostly unchanged compared with the same period last year.

The company reported an operating profit of Dh12.2m in the second quarter, down from Dh42.1m in the first quarter, but mostly unchanged against the second quarter of last year. Analyst predictions on Bloomberg estimated revenue this year at Dh333m, and profit of Dh100m.

The company is on course to hit its profit estimate, and is likely to hit its revenue estimate.

RAK Properties paid out a dividend of 5 per cent for the previous financial year, with equity disbursements totalling Dh100m for 2013.

The company’s share price yesterday climbed 0.9 per cent to Dh1.02 each.

"We are pleased with the company's strong performance for the first half of the year – which is a clear indication of RAK Properties' continuous growth and the increasing confidence in RAK," said Mohammed Sultan Al Qadi, the chief executive of RAK Properties. "We are upbeat that the remaining half of 2014 will be very fruitful for us."

The property developer began work on its Flamingo Villas project earlier this year, which is expected to be available for lease in 2017. The company also announced its Bermuda Villas project. Both will be located in Mina Al Arab.

In December, RAK Properties said it would repay a major loan, taken out in 2009, ahead of schedule.

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