RAK Properties, founded by the government of Ras Al Khaimah, revealed on Thursday that it made no sales in the first quarter of the year.
The company, which is an Abu Dhabi listed real estate firm, made the surprise revelation as it posted a 38.5 percent fall in first quarter profits.
“In general the property buying has come to a halt and we did not achieve any sales during the first three months of 2009,” the company said in a statement posted on the Abu Dhabi bourse website.
“We are accelerating project development and aiming to deliver certain properties during the year 2009 and recognize the revenue in 2009,” it added.
Net profit in the three months ended March 31 fell 38.5 percent to AED70m ($19.1m) from AED114 million in the corresponding period last year in the wake of the global crisis that has seen a slowdown in the real estate sector .
The company said its participation in Abu Dhabi’s Cityscape Exhibition and other sales and marketing activities are expected to yield sales in the second quarter of the year.
It has also appointed a "renowned business consultant" to review its current operations and to come up with a future business plan.
"Currently, our funds are channeled towards project completions and we will take up further expansion after reviewing recommendations expected out of the bnusiness strategy review and revision study," it added.
The Ras Al Khaimah government listed RAK Properties on the Abu Dhabi Securities Exchange in 2005 and holds a 45 percent stake in the company.
Shares have lost 67.8 percent of their value in the last year, giving the company a market capitalization of AED1.32bn ($359m) at Wednesday’s close.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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