RAK Properties more than doubles revenues on back of new residential launches

• Q1’23 revenue increased by 141% at AED 258.58 million
• Net profit at AED 44.60 million, increase of 46%
• The developer is seeking to capitalise on rising demand for real estate in the emirate

RAK Properties PJSC (ADX: RAKPROP), a UAE real estate development company, today released its 2023 first quarter consolidated financial results. Revenue growth of 141 per cent was driven by strong customer demand for new project launches in Abu Dhabi and Ras Al Khaimah and handover of residential developments to owners. The company’s hospitality assets have also added significant value to revenue streams, strengthened the balance sheet and driven the appeal of Mina Al Arab as a lifestyle destination in Ras Al Khaimah.

Q1 2023 key financial highlights:

• Revenue for the period of AED 258.58 million (AED 107.25 million for the same period last year)
• Net Profit for the period of AED 44.60 million (AED 30.48 million for the same period last year)
• Total comprehensive income for the period amounted to AED 44.60 million (AED 30.92 million for the same period last year)

Key financial highlights:

Development highlights

During Q1 2023, RAK Properties witnessed high levels of demand for its projects in Abu Dhabi and Ras Al Khaimah.

• The company succeeded in rapidly selling-out all of the released units in its Julphar Residence apartment building located on Reem Island in Abu Dhabi and has also commenced the hand-over to end users.
• Strong demand for beachfront properties in Ras Al Khaimah reflects positive investor and end-user demand for Bay Residences, located on Hayat Island, Mina Al Arab. The apartment buildings launched as part of Bay Residences Phase 1 have been fully sold out and their construction is currently underway and on schedule according to the development plan. Bay Residences Phase 2 launch received a similar response with two apartment buildings consisting of 324 apartments and 226 units has been sold so far. The piling work is completed and the recently appointed Gulf Asia main contractor has mobilized on site.
• Construction is ongoing for Gateway Residence 2, a 146-apartment residential building located on Hayat Island and the sales are ongoing.
• The sales programme for Marbella Villa Phase 2 comprising of 89 villas and townhouses was launched during the quarter. Construction has begun and is progressing well on schedule.

Hospitality highlights

• The developer successfully opened the 351-key 5-star Intercontinental Ras Al Khaimah Mina Al Arab Resort and SPA during 2022 and continues to achieve high occupancy and financials.
• The construction of a second 5-star Resort on Hayat Island, Anantara Mina Al Arab Hotel and Resort is on-track. The 174 key exclusive luxury resort with Maldivian style overwater villas is scheduled to open in late 2023.

Sameh Al Muhtadi, CEO of RAK Properties commented: “This set of results signals the beginning of a new phase of growth driven by our re-envisioned development pipeline. Sales from our launch of 679 units in Q1 have been driven by enthusiastic demand from end-users locally and international investors.

We have a very exciting period coming up, with further new launches in Q2 and the second half of the year.  Our primary focus is on introducing new residential developments, forging partnerships that enrich our communities and focus on transformation projects within existing locations throughout the Emirate of RAK. We remain committed to pursuing growth opportunities and investing in strategic acquisitions. With a robust liquidity position supporting us, we are strongly placed to successfully execute our long-term growth strategy.

We are dedicated to RAK’s vision 2030 and the real estate mandate by developing destinations that feed into the economic, societal, and environmental pillars of the emirate. Against this backdrop, we will continue to deploy capital in an efficient manner across platforms to drive our transformational growth agenda.”