Dubai Investments rides property wave to strong Q2 profits
Danah Bay project in Ras Al Khaimah progressing well; off-plan sales commence for Violet Tower in Dubai
Staff Writer, Zawya Projects
DFM-listed Dubai Investments announced that its second-quarter net profit attributable to shareholders surged 9 percent year-on-year to 289.24 million UAE dirhams ($79 million), compared to AED266.03 million ($72 million) recorded during the same period last year fueled by a buoyant property sector.
However, net profit attributable to shareholders declined to AED 409.20 million ($111 million) for the first half of 2024 compared from AED 580.48 million ($158 million) in the first half of 2023.
The statement noted that, after adjusting for one-off gains from the previous year related to the fair valuation of investment properties, net profit for the quarter and half-year increased by 78 percent and 83 percent, respectively.
The Group’s total assets touched AED 21.82 billion ($6 billion) by the end of June 2024, up from AED 21.44 billion ($5.8 billion) at the end of December 2023. On the other hand, equity attributable to the owners stood at AED13.34 billion ($3.6 billion) compared to AED13.46 billion ($3.7 billion) as of the year ended 31 December 2023.
Khalid Bin Kalban, Vice Chairman and CEO of Dubai Investments, emphasised the company’s commitment to its real estate projects, including the flagship AED1 billion ($272 million) Danah Bay luxury project in Ras Al Khaimah’s Al Marjan Island, launched in September 2022, a mixed-use development in Angola, launched in January 2024, and the $82 million Violet Tower in Dubai’s Jumeirah Village Circle, launched in March 2024 for which off-plan sales have started.
He said the acquisition of a 100 percent equity interest in Carnation Education (which holds the properties of Kent College in Dubai) by Al Mal Capital REIT, a subsidiary of Dubai Investments, in the second quarter is a strategic move that broadens the REIT’s investment horizon.
“The Group’s success across the quarters is attributed to the buoyant property sector and complemented by the excellent performance of its investment portfolio,” he said.
In September 2023, the company had stated that Phase 1 is expected to be handed over in the first quarter of 2025.
“The Group is keen on further strengthening its market leadership by continuing to focus on key real estate projects and broadening its investment footprint across regional and international markets,” he concluded.