Nakheel 2011 profit up 33%

Dubai-based property developer Nakheel said on Monday its net profit jumped 33 per cent to Dh1.33 billion in 2011 compared with Dh1 billion in 2010.  Revenues reached Dh4.1 billion, driven by handover of properties mainly in the Palm Jumeirah, Jumeirah Village, International City, the World and Al Furjan. Total assets trebled from Dh8 billion to Dh24 billion.  Total liabilities fell to Dh41 billion last year from Dh61 billion in 2010. The company delivered 820 units in 2011. Company CEO Rashid Ali Lootah said since the company had not recorded any impairment loss for 2011, it had led to increase in profits. Impairment loss for 2010 was Dh2.7 billion. "We are expecting to even better our performance this year," Lootah said, attributing to the growing investor confidence in Dubai and their projects. Retail and residential leasing continued to perform well in 2011, with 100 per cent occupancy in Ibn Battuta Mall and Dragon Mart. Residential leasing showed remarkable improvement with occupancy levels touching 80 per cent across its portfolio of 20,000 units. Last week, Nakheel broke ground on Palma Residences in Palm Jumeirah – the first project to be launched after completion of its restructuring. Thirty units at a combined value of Dh223 million had been sold and 30 more "serious" potential buyers are in the pipeline. "It's the first project to be launched after our restructuring. We have sold 30 units and that shows sign of trust in Dubai and sign of trust in Nakheel," Lootah said. n its sukuk document issued in September 2011, the developer said that, pursuant to the operational plan, it estimates that the cost of completing projects earmarked for delivery in the near-term will be approximately Dh8.8 billion. The company plans to deliver over 8,000 units by year-end and early 2013.