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RAK Properties PJSC, listed on the Abu Dhabi Securities Exchange (ADX) under the ticker symbol RAKPROP, has released its financial results for the first half of 2023 (H1’23). The company has witnessed an impressive 164% increase in revenue, primarily fueled by robust demand for new project launches in Abu Dhabi and Ras Al Khaimah. Additionally, RAK Properties’ hospitality assets have played a pivotal role in elevating Mina Al Arab’s allure as a premier lifestyle destination in Ras Al Khaimah. In this article, we delve into the key financial highlights, development and hospitality updates, and the future outlook for RAK Properties.
2023 Key Financial Highlights
RAK Properties achieved significant milestones in H1 2023, highlighting its commitment to growth and success in the UAE real estate market.
1. Revenue Surge: AED 511.64 Million
In H1 2023, RAK Properties recorded a staggering revenue of AED 511.64 million, showcasing an extraordinary 164% increase compared to AED 193.99 million in the same period last year. The remarkable surge in revenue is a testament to the company’s strategic planning and strong market presence.
2. Robust Net Profit: AED 88.19 Million
The company’s net profit for H1 2023 stood at AED 88.19 million, witnessing an impressive surge of 245% from AED 25.55 million in the same period last year. The substantial increase in net profit reflects the successful execution of projects and effective financial management.
Development Highlights: Meeting Market Demand
RAK Properties observed intensified demand for its projects in both Abu Dhabi and Ras Al Khaimah during H1 2023. The company’s developments continue to resonate with the market, attracting local end-users and international investors alike.
1. Julphar Residence Apartment Building: A Resounding Success
All released units at the Julphar Residence apartment building on Reem Island in Abu Dhabi were sold out, reflecting the high market interest in RAK Properties’ offerings. The ongoing handover process for over 75% of sold units further highlights the efficiency in project delivery.
2. Bay Residences Phase 1: Sold Out and Under Construction
Bay Residences, located on Hayat Island, Mina Al Arab, witnessed strong demand, with all units in Phase 1 fully sold out. Construction is progressing as per the set timeline, enhancing Mina Al Arab’s status as a premier beachfront residential destination.
3. Nasim Lofts: A New Addition to Beachfront Residential Buildings
The launch of 13 Nasim Lofts at Bay Residence adds a new dimension to Mina Al Arab’s beachfront residential offerings. The ongoing sales for this latest addition indicate positive market reception.
4. Gateway Residence 2: Ongoing Construction and Sales
Construction is ongoing at the development of 146 apartments at Gateway Residence 2, Hayat Island, Mina Al Arab. Sales efforts continue in 2023 to meet the high demand for these residential units.
5. Marbella Villa Phase 2: Progressing Development
RAK Properties’ commitment to offering luxury villas and townhouses continues with the development of 89 units at Marbella Villa Phase 2, Mina Al Arab. The project’s successful sales launch in Q1 2023 reflects the demand for upscale residential offerings.
6. Bayviews: A Towering Success
The sale of two residential towers, consisting of 344 apartments at Bayviews, Hayat Island, Mina Al Arab, achieved remarkable success. The towers were sold out within hours of the sales launch, underscoring the appeal of RAK Properties’ projects.
7. Planned Residential: Expanding Beachfront Living
RAK Properties is set to launch Bay Area Apartments, a premium beachfront residential project located on Hayat Island, Mina Al Arab. With six plots of beachfront residential buildings, the development is poised to redefine beachfront living in Ras Al Khaimah.
Hospitality Highlights: Thriving in a Dynamic Market
The company’s Hospitality and Leisure business continues to thrive, benefiting from a busy entertainment, leisure, and business events calendar. The return of travel and tourism has further boosted the performance of RAK Properties’ hospitality assets.
1. Intercontinental Ras Al Khaimah Mina Al Arab Resort and Spa: A Success Story
The 5-star Intercontinental Ras Al Khaimah Mina Al Arab Resort and Spa hotel achieved higher occupancy and financials compared to the compset. The hotel’s success contributes significantly to RAK Properties’ recurring revenue streams.
2. Anantara Mina Al Arab Hotel and Resort: On-Track for Opening
Construction of RAK Properties’ second 5-star luxury hotel, Anantara Mina Al Arab Hotel and Resort, with 174 keys, is progressing as planned. The hotel is set to open its doors later this year, adding another gem to RAK Properties’ hospitality collection.
CEO’s Vision: Driving Growth and Transformation
Sameh Al Muhtadi, CEO of RAK Properties, expressed his excitement about the remarkable results and the company’s future prospects. The company is dedicated to driving transformational projects within Ras Al Khaimah, aligning with RAK’s Vision 2030. RAK Properties is committed to investing in strategic acquisitions and maintaining a robust liquidity position to support its long-term growth strategy. The CEO’s vision for the company’s luxurious hospitality collection promises to enhance RAK Properties’ appeal as a lifestyle destination in Ras Al Khaimah.
Conclusion
RAK Properties’ impressive financial results for H1 2023 signify its growth and success in the UAE real estate market. With a diverse range of residential developments and thriving hospitality assets, the company continues to create value for investors and deliver exceptional living experiences. As RAK Properties embarks on an exciting phase of growth with multiple project launches on the horizon, its commitment to innovation, quality, and customer satisfaction remains unwavering. The company’s contributions to Ras Al Khaimah’s vision of growth and development are poised to elevate the emirate’s standing as a premier destination in the region.
