Dubai's Nakheel posts 36% rise in Q1 net profit

Indebted developer reports profit of $133m, boosted by delivery of long-delayed units
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By Reuters
Wed 17 Apr 2013 12:09 PM

Indebted Dubai property developer Nakheel reported a 36 percent rise in first-quarter net profit on Wednesday, boosted by delivery of long-delayed units to customers.

The state-owned property firm reported a profit of AED491m ($133.4m) in the quarter compared to a profit of AED362m in the corresponding period in 2012, Nakheel said in an emailed statement.

Revenue for the first quarter was AED2.2bn, up 62 percent from a year earlier.

Nakheel delivered 770 homes in the first quarter and is on track to deliver an estimated 3,000 units in 2013, it said.

Ali Rashid Lootah, chairman of Nakheel, said: "Our robust results for Q1 speak for themselves. Not only do they highlight the ongoing support of the Government of Dubai and our commitment to delivering our post restructuring plan, they also clearly reflect the continual recovery of Dubai's real estate market and solid investor confidence in Nakheel and its projects.

"Q1 2013 has been a hive of activity for Nakheel, with continued delivery to customers and ongoing construction of a growing number of residential and retail projects.

"We remain focused on implementing our sustainable, realistic long term business strategy, which is fundamental to the growth of Dubai's real estate sector."

He said Nakheel also continues to focus on meeting its restructuring commitments to stakeholders, and by the end of Q1 2013 had made interest payments of AED206m to bank lenders and issued AED120m for the fourth tranche of its trade creditor sukuk.

Since restructuring, Nakheel has paid over AED1.1bn in loan interest and sukuk profit payments and made cash payments of around AED11bn to trade creditors and contractors.

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