RAK Properties reported a more than threefold increase in net profit for the first quarter on the back of higher net operating income and lower finance costs.
Net profit for the three months ending March 31 was Dh12.04 million, up from Dh3.51m reported during the same period last year, the company said in a filing to the Abu Dhabi Securities Exchange, where its shares trade.
Operating income during the period more than doubled to Dh13.4m but revenue fell 22 per cent to Dh36m.
Finance income increased to Dh3m during the period, compared to Dh2.5m in the first quarter of last year. Finance costs fell 40 per cent year on year to Dh3m. The company's cost of sales dropped 25 per cent to Dh22.6m.
The company said the 144-apartment Gateway Residence project in Ras Al Khaimah and the 266-apartment Julphar Residence in Abu Dhabi are at an advanced stage of development, with delivery expected in the second quarter and third quarter of this year, respectively.
The construction of the Marbella Villas project at its Dh10 billion Mina Al Arab development in Ras Al Khaimah, with 205 villas and townhouses, is progressing according to plan, the company said.
RAK Properties is also developing two hospitality projects in Ras Al Khaimah – an Intercontinental Hotel and Resort with 350 rooms and an Anantara Mina Al Arab Hotel and Resort with 174 rooms. It, however, did not give an update on the opening date for either project.
"The hotel properties are expected to form part of the hospitality portfolio to facilitate a recurring revenue stream," Mohammad Sultan Al Qadi, managing director of RAK Properties, said.
Total assets stood at Dh5.65bn during the first quarter, up 1 per cent on the Dh5.59bn reported at the end of 2019.
RAK Properties is targeting Dh300m in 2020 revenue, Mr Al Qadi told The National earlier this year.
"We have two towers, which are nearing completion," he said.
"One in Ras Al Khaimah, which will be handed over in March, and [one] in Abu Dhabi [which will be handed over] in June. With these projects, we expect our revenue to almost double. We also have villas and other units to be sold."