Release Date: 2 November 2023
RAK Properties PJSC (ADX: RAKPROP), Ras Al Khaimah’s leading publicly listed property developer, today released its financial results for the third quarter of 2023 (Q3’23). The company’s profit and revenue for the third quarter of 2023 have exceeded targets as well as same period last year amid the launch of new projects and growth in sales. The results saw a 282 percent increase in net profits and 137 percent increase in revenue as robust demand continued for the Company’s portfolio of newly released residential mixed-use projects. Hospitality is gradually playing a greater role in bolstering revenue streams, as the Company elevates its reputation for delivering best-in-class lifestyle destinations.
Sameh Muhtadi, CEO of RAK Properties commented, “Our focus this year has been on bringing to life our vision for Mina Al Arab as the leading lifestyle destination in Ras Al Khaimah. The reimagining of our development plan, strategic partnerships with leading global and local brands, and growing international positioning of Ras Al Khaimah and Mina Al Arab have all positively influenced progress towards achieving our vision. Our performance this quarter reflects the speed with which we are able to deliver on our development roll out plan.”
Q3 2023 key financial highlights:
• Revenue for the period of AED 685.56 million (AED 289.58 million for the same period last year)
• Net Profit for the period of AED 105.17 million (AED 27.55 million for the same period last year)
• Total comprehensive income for the period amounted to AED 105.17 million (AED 27.55 million for the same period last year)
Mr. Muhtadi further commented, “The InterContinental Resort & SPA has won multiple prestigious awards, and has taken on a leading hospitality position in Ras Al Khaimah. The opening of the 5-star Anantara Resort & SPA end of this year will add considerable additional appeal to our overall hospitality offering on Mina Al Arab, and our recurring revenue streams. As we continue our growth trajectory, Nikki Beach Resort & Spa Ras Al Khaimah which was announced earlier represents a pivotal component of RAK Properties’ expansive master plan for Mina Al Arab.
Taking the next step in our growth journey, we aim to target investments that are core to our current operations, characterised by solid fundamentals, demographic shifts, digitised economies, and evolving consumer preferences.”
During Q3 2023, RAK Properties experienced intensified demand for its projects in both Abu Dhabi and Ras Al Khaimah, underscoring the strong interest in the company’s offerings.
• All units released at the Julphar Residence apartment building on Reem Island in Abu Dhabi were sold out, and over 94% of sold units have been handed over.
• Beachfront residential buildings are experiencing extremely strong demand, as demonstrated at Bay Residences, located on Hayat Island, Mina Al Arab. All four buildings in Bay Residences Phase 1 and Bay Residences Phase 2 have fully sold out. Construction is progressing on schedule.
• Nasim Lofts at Bay Residence has been launched, and sales are ongoing for these beachfront townhouses.
• Construction of an additional 89 luxury villas and townhouses at Marbella Villa Phase 2, Mina Al Arab is progressing, and sales have exceeded 90%.
• Bayviews, Hayat Island, Mina Al Arab, the sale of two residential towers, consisting of 344 apartments, was launched at the end of Q2 2023, selling out within a few hours. Construction is planned to commence in December.
• The sale of 4 residential towers consisting of 678 apartments at Cape Hayat, Hayat Island, Mina Al Arab, was launched in end Q3 2023. The financial contribution of Cape Hayat has not been recorded in Q3 2023 results.
• The sale of Porto Playa, a partnership with Ellington Properties has exceeded expectations will all units sold out. The financial contribution of Porto Playa has not been recorded in Q3 2023 results.
• RAK Properties and Nikki Beach Global have partnered to open its first and exclusive branded hotel resort in Mina Al Arab, Ras Al Khaimah.
• The 5-star Intercontinental Ras Al Khaimah Mina Al Arab Resort and Spa hotel exceeded occupancy and financials compared to the compset and surpassed projections for Q3 2023.
• Construction of our second 5-star luxury hotel, Anantara Mina Al Arab Hotel and Resort, Ras Al Khaimah, with 174 keys is on-track to be completed in November.