RAK Properties, the most prominent property developer in Ras Al Khaimah, has announced a net profit of AED 114.58 million for the first three months of 2008, ended 31st March. The first quarter profits indicate earnings per share (EPS) of AED 0.057 and marks an increase of 11% over the corresponding period in 2007.
The company also concluded AED 564 million worth of sales in residential and commercial units during the first three months of 2008, thus registering an increase of 232 % over the corresponding period of the previous year. Although the company has recorded substantial sales during this period, revenue recognition has been postponed until such time costs can be reasonably attributed to 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.
“Our financial results for the first quarter of 2008 are highly encouraging and underline our budgeted projections. It is also an endorsement of the management’s strategy of identifying the best opportunities and low risk projects that ensure sustained returns and meet shareholder’s expectations,” said Mohammed Sultan Al Qadi, Managing Director & CEO of RAK Properties.
“RAK Properties supports the vision of His Highness Sheikh Saud Bin Saqr Al Qasimi, Deputy Ruler and Crown Prince of Ras Al Khaimah, to promote economic growth and transform the emirate into one of the region’s leading destinations for tourism and real estate investment. The success we have achieved encourages us to continue in the same direction by initiating leading projects and forming strategic partnerships,” he added.
The RAK Properties investment portfolio includes residential, commercial and leisure facilities. Julfar Towers, the company’s maiden initiative launched in 2006, is a business and residential project of AED500 million, with two towers rising up to 43 floors. Mina Al Arab, the company’s second project, is a mixed-use waterfront resort community that will epitomise the ‘Living Closer to Nature’ motto of RAK Properties. Spread over 30 million sq. feet and with an estimated cost of AED10 billion, the project was announced in 2006. RAK Tower, an AED 300 million project launched by RAK Properties in 2007, is a residential tower in Abu Dhabi comprising 43 floors.
