Nakheel's H1 2013 profit soars by 57%

Dubai real estate developer, Nakheel, has announced that it made a net profit of AED1.2 billion in H1 2013, a 57 per cent increase on figures reported for H1 2012. Revenue for H1 2013 stood at AED4.23 billion, up 36 per cent on 2012, the company announced today. The strong results for H1 2013 reflect the on-going support of the Government of Dubai and the commitment by Nakheel to delivering the post-restructuring plan. They also demonstrate the continuing growth and strengthening of the real estate market in Dubai, and the return of investor confidence. Q2 2013 has been busy for Nakheel, with continued customer hand-overs and on-going construction of an increasing number of residential and retail projects. Handover of properties was the main contributor to Nakheel's strong revenue figures, with continued positive and encouraging contributions from the company's retail, leasing and leisure business units. Nakheel continues to complete its near-term projects and has now delivered around 6,000 properties, including around 1,400 in H1 2013 alone, since completing its restructuring in August 2011. Nakheel is currently evaluating a number of projects that will add value to its existing communities and result in a more sustainable and long term viable business post restructuring. Meanwhile, the company continues to focus on meeting its restructuring commitments to all its stakeholders. In addition to the interest payment of AED206 million made to lenders in Q1 2013, Nakheel also made a profit payment of AED210 million to its Sukuk holders in Q2 2013. Since restructuring, Nakheel has paid over AED 1.3 billion in loan interest and sukuk profit payments. The company has also made cash payments of around AED11.3 billion to trade creditors and contractors.