Release Date: 03 August 2023
- H1’23 revenue increased by 164% at AED 511.64 million
- Net profit at AED 88.19 million, increase of 245%
- Future developments planned to capitalise on huge demand for real estate in RAK
- Occupancy levels and financials exceed projections in luxury hospitality offering
RAK Properties PJSC (ADX: RAKPROP), a UAE real estate development company, today released its financial results for the first half of 2023 (H1’23). A remarkable 164 percent increase in revenue was primarily propelled by robust demand for new project launches in both Abu Dhabi and Ras Al Khaimah, along with the successful handover of residential developments to delighted owners. Additionally, the company’s hospitality assets played a crucial role in enhancing revenue streams, fortifying the balance sheet, and elevating Mina Al Arab’s allure as a premier lifestyle destination in Ras Al Khaimah.
H1 2023 key financial highlights:
- Revenue for the period of AED 511.64 million (AED 193.99 million for the same period last year)
- Net Profit for the period of AED 88.19 million (AED 25.55 million for the same period last year)
- Total comprehensive income for the period amounted to AED 88.19 million (AED 25.74 million for the same period last year)
Key financial highlights:
| Details |
H1 FY2023 (AED MN) |
H1 FY2022 (AED MN) |
Change y-o-y (%) |
|
|
| Revenue |
511.64 |
193.99 |
164% |
|
|
|
|
| Gross profit |
163.05 |
59.08 |
176% |
|
|
|
|
| EBITDA |
133.47 |
53.08 |
151% |
|
|
|
|
| Net Profit |
88.19 |
25.55 |
245% |
|
|
|
|
Development highlights
During H1 2023, RAK Properties observed intensified demand for its projects in both Abu Dhabi and Ras Al Khaimah, underscoring the strong market interest in the company’s offerings.
- All released units at the Julphar Residence apartment building on Reem Island in Abu Dhabi were sold out, and over 75% of sold units have been handed over, with the ongoing handover process continuing for the remainder.
- Beachfront residential buildings are experiencing strong demand, as demonstrated at Bay Residences, located on Hayat Island, Mina Al Arab. At Bay Residences Phase 1 all units are sold out and both towers are under construction, with development on track according to the plan. Bay Residences Phase 2, comprising 324 apartments proved hugely popular when sales were launched in Q1 2023, with all units fully sold out by H1 2023. Construction has commenced and is progressing as per the set timeline.
- 13 Nasim Lofts at Bay Residence has been launched in the market, and sales are ongoing for the latest addition to these beachfront residential buildings.
- Construction is ongoing at the development of 146 apartments at Gateway Residence 2, Hayat Island, Mina Al Arab as of H1 2023, and sales are ongoing in 2023.
- Construction of an additional 89 luxury villas and townhouses at Marbella Villa Phase 2, Mina Al Arab is progressing, and sales were launched in Q1 2023 and are ongoing.
- At Bayviews, Hayat Island, Mina Al Arab, the sale of two residential towers, consisting of 344 apartments, was launched at the end of Q2 2023, selling out within a few hours of the launch. Construction is due to commence at the end of Q3 2023.
Planned residential
- Bay Area Apartments located on Hayat Island; Mina Al Arab comprises of six plots of beachfront residential buildings. The development of the first 2 plots is currently under tendering stage and the remaining 4 plots are under final design stage and the sales launch is scheduled within the coming month.
- RAK Properties and Ellington Properties entered into a partnership to jointly develop a premium waterfront residential project in Hayat Island.
Hospitality highlights
- The Hospitality and Leisurebusiness continues to benefit from a busy entertainment, leisure, and business events calendar and the return of travel and tourism more broadly. The 5-star Intercontinental Ras Al Khaimah Mina Al Arab Resort and Spa hotel achieved higher occupancy and financials compared to the compset and exceeded projections for H1 2023.
- Construction of our second 5-star luxury hotel, Anantara Mina Al Arab Hotel and Resort, Ras Al Khaimah, with 174 keys is on-track to open this year.
Sameh Al Muhtadi, CEO of RAK Properties commented: “These remarkable results mark the onset of an exciting phase of growth, fuelled by our re-imagined development pipeline and designs. We are witnessing enthusiastic demand from both local end-users and international investors driving our sales across the board. Looking ahead, we have an exhilarating period in store, with multiple launches to be announced in the coming months.
Our primary focus remains on driving transformational projects within existing locations across Ras Al Khaimah, where we have further developments planned that align with our dedications to RAK’s Vision 2030. As we steadfastly pursue growth opportunities, we are committed to investing in strategic acquisitions and maintaining a robust liquidity position to support our long-term growth strategy.
We are excited for the future of our luxurious hospitality collection, with The InterContinental Resort & Spa proving to be very popular and delivering excellent revenue, and we expect that the opening of the 5-star Anantara Resort & SPA in the fourth quarter (Q4) will significantly enhance RAK Properties recurring revenue streams adding considerable appeal to our overall hospitality offering. Design is also almost complete on a serviced apartment project, the construction of which will commence in the last quarter of 2023. These assets add significant value to revenue streams, strengthening the balance sheet, while also driving the appeal of Mina Al Arab as a lifestyle destination in Ras Al Khaimah.”
