Dubai Nakheel, the state-controlled builder of artificial islands off Dubai’s coast, reported a first-quarter profit after a year-earlier loss as it delivered more completed properties to buyers and cut costs.
The company said it made a profit of 362 million dirhams ($98.56 million) in the three months to March 31, up from a loss of 36 million dirhams in the year-earlier period.
“The positive results of Q1, 2012 following from the robust financial results achieved in the year 2011, continue to indicate a relatively more stable real estate market in Dubai,” the company said in a statement, adding that other business segments, including retail and leasing, also contributed positively to the results.
“Other business segments including retail and leasing also contributed positively to the results."
Nakheel restructured $16 billion of debt after Dubai’s property market collapsed following the onset of the global financial crisis. The company wrote down $21 billion of assets from 2008 to mid-2010, as Dubai property prices slumped by more than 65 percent.
First-quarter profit was also boosted by 22 million dirhams in cost cuts and recurring revenue from the company’s leasing and retail businesses, Nakheel said. The value of the company’s assets increased to 25.4 billion dirhams.
Nakheel launched a couple of big projects on the Palm Jumeirah in recent months. In May, it launched a new mixed-use residential development called Palm Views comprising 192 studio units — all priced at Dh1 million, with handover expected in the first quarter of 2014. And The Palma Residence, featuring 102 townhouses, was launched in February.