Dubai Investments reports net profit of Dhs480m

01/08/2017 05:35 AST

Dubai Investments has reported net profit of Dhs480 million for the six month period ended June 30th, 2017, compared to Dhs516 million in the same period last year.

The company's total assets grew to Dhs16.42 billion and the total income during the period was Dhs1.28 billion. The results include 8 per cent growth in rental income to Dhs459 million.

It's net profit for the second quarter of 2017 was Dhs191 million, compared to Dhs218 million in Q2 2016.

Khalid bin Kalban, Managing Director and CEO of Dubai Investments, said, "Dubai Investments has delivered a solid set of financial results. Excluding the one-off gain from divestments amounting to AED186 million in the first half of 2016, the company's net profit has in fact has grown by Dhs150 million, an increase of 45 per cent, in the first half this year. The positive results are driven by growth in rental income which has contributed to increase in underlying cash flows."

Kalban added, "Dubai Investments is positive on the outlook for the remainder of 2017, and progressing on schedule on its various real estate projects across the UAE. The company plans to continue its diversification strategy, aimed at broadening its geographical footprint and branching out into the education and health care sectors whilst growing its asset base and creating value for the shareholders."

Dubai Investments is currently developing the Mirdif Hills mixed-use project while the Green Community DIP - West Phase III is in the process of being completed and handed over. The group is also involved in various other real estate developments in the UAE including the Fujairah Business Centre, which is a mixed-use development with hospitality and retail elements and the infrastructure of the Palisades project within Dubai Investments Park.

On Sunday, Dubai Land Department has announced that total real estate transactions for the first half of the year reached to Dhs132 billion, achieved through 35,571 sales, mortgages and other transactions.

The report reveals that the market has achieved a high percentage of growth compared to the same period last year, with total value increasing by 16.8 per cent from a total of 7,320 transactions - an increase of 25.91 per cent compared to transactions for the first six months of 2016.

The report also confirms that the Dubai real estate market generated a total of 25,864 sales transactions worth over Dhs63 billion and 7,893 mortgage transactions worth Dhs60 billion, while 1,814 other types of transaction brought in Dhs9 billion.

The Gulf Today