Release Date: 08 August 2024
- H1 2024 revenue increased by 19% to AED 610 million
- Gross profit increased by 40% to AED 228 million
- Profit before tax at AED 98 million, an increase of 11% year-on-year
- Government increases stake in RAK Properties to c. 34%
- The luxurious NB Collection – a first step in RAK Properties roll-out of ultra-luxury properties to meet growing demand in Ras Al Khaimah’s prestigious real estate market launched in June.
RAK Properties (ADX: RAKPROP), Ras Al Khaimah’s pioneering publicly listed property developer, has released its consolidated financial results for the first half of 2024, showcasing sustained financial growth and strategic progress.
RAK Properties recorded a revenue of AED 610 million, a significant 19% increase compared to the same period in 2023. This growth was driven by strong demand for the company’s diverse property portfolio of high-quality residential, commercial, and hospitality projects, particularly the ongoing success of its flagship developments in Mina Al Arab.
Profit before tax also demonstrated healthy growth, rising 11% to AED 98 million, reflecting the company’s continued investment in its development pipeline to cater to the dynamic market demands.
Abdulaziz Abdullah Al Zaabi, Chairman of RAK Properties, said: “We are proud to report a solid performance in the first half of 2024, reflecting the dedication of our team, the resilience of our business model and the burgeoning real estate landscape in Ras Al Khaimah and the wider UAE. The Government of Ras Al Khaimah’s increased stake in the company to 34% in June also demonstrates clear confidence in our strategic vision and growth trajectory. We remain committed to creating exceptional value for our shareholders and contributing to the continued growth of Ras Al Khaimah.”
Sameh Muhtadi, CEO of RAK Properties, commented: “The first half of 2024 has seen sustained growth for RAK Properties, driven by strong demand across our diverse property portfolio, reinforcing our leadership in the real estate market.
“The growing global interest in our properties, coupled with the strong performance of our hospitality assets, is a testament to the strength of our brand and the dynamic growth of Ras Al Khaimah. With exciting new projects underway and a robust pipeline of future developments, we are confident in our ability to continue delivering revenue growth. This momentum is further amplified by the increased stake from the Government of Ras Al Khaimah and our proactive approach to emerging market opportunities.”
“Our outlook remains bright, underpinned by the solid fundamentals of Ras Al Khaimah and our unwavering commitment to excellence and delivering exceptional value to our stakeholders.”
H1 2024 Key Financial Highlights:
- Revenue increased to AED 610 million, a 19% growth compared to AED 512 million in the same period last year.
- Gross profit increased to AED 228 million, a 40% growth compared to AED 163 million in the same period last year.
- Profit before tax amounted to AED 98 million, an 11% increase compared to AED 88 million in the same period last year.
- Total assets stood at AED 7.79 billion as at H1 2024, up from AED 6.46 billion at the end of the previous year (31 December 2023).
- Total equity stood at AED 5.31 billion as at H1 2024, compared to AED 4.30 billion at the end of the previous year (31 December 2023).
Development highlights
During H1 2024, RAK Properties continued to see strong demand and performance across its residential and hospitality portfolio of projects.
Residential:
- The units in the hugely popular development, Bay Residences, comprising 661 apartments across four buildings in Bay Residences Phase 1 and Bay Residences Phase 2, are all sold out. Construction is progressing on schedule, with completion now at 75% and handover will be on schedule.
- Construction of Gateway Residence 2, an eight-storey residential tower situated at the entrance of Hayat Island, is progressing according to schedule. The tower’s 146 apartments are fully sold out and are expected to be handed over by the end of this year.
- Marbella Villas Phase 2 construction of the additional 89 villas and townhouses is in the final stage and remains on track for early handover.
- Work is well underway on Bay Views, a 344-unit urban island residential complex on Mina Al Arab’s Hayat Island, an established waterfront community in Ras Al Khaimah, with lush landscaping, protected coastal wetlands and pristine beaches. All 344 apartments within the 2 towers sold out within a few hours of the launch.
- Cape Hayat, spanning 22,854 sqm, is a luxury collection of residential apartments with direct beach access. The sale of these four towers, consisting of 678 apartments, was launched last year, and 86% of the project is already sold. Construction of the four towers commenced at the end of 2023 and is on track.
- Quattro Del Mar, a new project with an integrated lifestyle hub featuring entertainment and world-class facilities, was launched at the beginning of this year. As of Q2 2024, 60% of the launched inventory has been sold. Project construction contracts are currently in the tendering stage, with construction planned to commence in Q3 2024.
- Phase 2 of Granada II, consisting of 80 townhouses, was launched at the end of Q2 2024. Construction of this Granada extension project commenced in Q3 2024, with planned completion in Q1 2026.
- RAK Properties introduced a new luxury living experience on Raha Island with the launch of Edge, a yacht-inspired waterfront residential tower. The tower comprises 237 units, offering a mix of studios, one-bedroom and two-bedroom apartments. Since its launch at the end of Q2 2024, 30% of the available inventory has been sold out to date.
- NB Collection a bespoke collection of high-end beach front villas was introduced by RAK Properties and launched to the market at the end of Q2 2024. This collection consists of 11 high-end villas with a planned completion date of the end of 2026.
Hospitality:
During H1 2024, RAK Properties’ hotel assets continue to contribute positively to the revenue, profit and cash flow streams.
- Intercontinental Ras Al Khaimah Mina Al Arab Resort and SPA
The prestigious hotel located at Hayat Island Mina Al Arab with 351 keys are performing well with higher occupancy and strong financial revenue.
- Anantara Mina Al Arab Hotel and Resort, Ras Al Khaimah
The second 5 Star luxury hospitality asset with 174 keys opened its door and started operation from 02 January 2024 and has exceeded performance targets.
Planned Projects:
- RAK Properties has partnered with Nikki Beach Global to open first branded resort and beach club in Mina Al Arab, Ras Al Khaimah.
- RAK Properties and IHG Hotels & Resorts have expanded their strategic partnership with the introduction of the 156-key ‘Staybridge Suites Mina Al Arab’ on Hayat Island in Ras Al Khaimah, further diversifying and enhancing the hospitality portfolio on the island.
- RAK Properties and Ellington Properties have partnered to develop a premium waterfront residential project on Hayat Island. This joint venture will combine the strengths of both companies to create an exceptional living experience.
