Dubai, 16 April 2012
Nakheel is pleased to announce its results for the financial year ending 31 December 2011, posting a profit of AED 1.3bn reflecting a year on year improvement of 33% in comparison to the financial year ending 31 December 2010.
Nakheel recorded revenue of AED 4.1bn for FY11, broadly in line with a revenue of AED 4.2bn for FY10. In FY 11, 820 units, including land parcels, were delivered to customers. Revenues were driven by the handover of properties in several of the Group’s developments, mainly Palm Jumeirah, Jumeirah Village, International City, The World and Al Furjan.
Retail and residential leasing continued to perform well. FY11 witnessed almost 100% occupancy in Battuta Mall and Dragon Mart, reflecting a buoyant local retail market. Occupancy for residential leasing in FY11 showed marked improvement at an average of 80% as compared to FY10 following the rationalisation of leasing rates in FY11 and increased demand witnessed for almost all the areas where Nakheel has residential buildings for lease.
Profit for FY 11 increased to c. AED 1.3bn from c. AED 1bn in FY10. The increase in profit in FY11 is primarily due to the fact that as against impairment loss of AED 2.7bn recorded in FY10, there was no impairment loss of in FY11.
In FY 11, the Group continued to focus on reducing its costs. Total operating costs for the Group decreased from c. AED 1.23bn in FY10 to c. AED 1.17bn in FY11, a drop of c. AED 60m.
Total liabilities of Nakheel Group decreased from c. AED 61bn in FY10 to c. AED 41bn as of FY 11.
The net assets of the Group improved from AED 8bn at 31 December 2010 to AED 24bn at 31 December 2011 – the result of a successful restructuring, diligent execution of the revised business plan and improving market conditions.
These robust financial results are reflective of the Company’s singular focus on implementing its approved restructuring plan and contributing to the recovery of the Dubai real estate market. Nakheel successfully recommenced all its near term projects and started delivering properties as scheduled during FY11. Most of the properties currently under construction are expected to be handed over to customers in the intervening period to Q1 2013.
Nakheel Board of Directors would like to sincerely thank Dubai Government and all of Nakheel’s stakeholders including business partners, management and staff, for their continued support and team work in delivering these results as the company continue to strive to maximise value for its stakeholders.