RAK Properties Records Strong Q3 Results Fuelled by Strategic Projects

RAK Properties (ADX: RAKPROP), the leading publicly listed property developer in Ras Al Khaimah, has announced its consolidated financial results for the third quarter of 2024. The report highlights steady financial growth and significant strides in its development strategy.

Strong Revenue Growth and Strategic Vision

For Q3 2024, RAK Properties posted a substantial 30% increase in revenue, reaching AED 891 million. This impressive growth underscores the successful realization of the company’s strategic plans for Mina Al Arab and showcases the strong appeal of its diverse project portfolio. From residential to commercial and hospitality projects, RAK Properties continues to attract substantial interest from investors and end-users alike.

Profit and Operational Efficiency

The company also saw remarkable improvements in profitability, with a 27% increase in profit before tax and a 46% rise in gross profit compared to the previous year. These gains reflect RAK Properties' commitment to operational efficiency, underscored by continuous development and expansion efforts to meet the rising market demand in Ras Al Khaimah.

Key Financial Metrics for Q3 2024

RAK Properties’ Q3 2024 financial results highlight several key metrics:

> Revenue surged by 30%, reaching AED 891 million, up from AED 686 million in Q3 2023.

> Profit before tax rose by 27%, totalling AED 133 million compared to AED 105 million last year.

> Total assets grew by 20% to AED 7.74 billion, up from AED 6.46 billion as of December 31, 2023.

> Total equity increased to AED 5.34 billion as of Q3 2024, compared to AED 4.30 billion at the end of 2023.

Development Highlights

Residential Projects –

Bay Residence, Hayat Island: RAK Properties continues development on Bay Residence, a beachfront residential project featuring two towers. The construction is proceeding on schedule, with all 324 units sold out.

Bay Residence Phase 2, Hayat Island: Adjacent to the Intercontinental Hotel, this second phase of Bay Residence includes two towers, fully sold out and scheduled for handover in the first half of next year.

Gateway Residence 2, Hayat Island: An eight-story residential tower at the entrance of Hayat Island, Gateway Residence 2 has also achieved full sales of its 146 apartments, with construction progressing as planned.

Marbella Villa Phase 2, Mina Al Arab: This development includes 89 luxury villas and townhouses, with construction on schedule for early handover.

Bayviews, Hayat Island: Two residential towers under construction, launched at the end of 2023, sold out swiftly, with 344 apartments purchased within hours of launch.

Porto Playa, Hayat Island: In collaboration with Ellington Properties, RAK Properties has begun construction on Porto Playa, a waterfront residential development, marking Ellington’s first venture in Ras Al Khaimah.

Cape Hayat, Hayat Island: Consisting of four towers and 678 apartments, Cape Hayat was launched last year, achieving 89% sales by Q3 2024. Construction began at the end of 2023 and is on track.

Quattro Del Mar, Hayat Island: A newly launched lifestyle project, Quattro Del Mar features entertainment and top-notch facilities, with 70% of inventory sold as of Q3 2024. Completion is expected by the end of 2026.

Granada II, Mina Al Arab: The second phase of Granada, consisting of 80 townhouses, was launched in late Q2 2024, with construction aimed for completion by Q1 2026.

Edge, Raha Island: RAK Properties introduced Edge, a luxury waterfront residential tower with 237 units, at Raha Island. Since its launch in Q2 2024, 44% of units have been sold.

NB Collection, Hayat Island: This exclusive collection of 11 beachfront villas was launched in Q2 2024, with completion expected by the end of 2026.

Hospitality Projects –

Intercontinental Ras Al Khaimah Mina Al Arab Resort and SPA: The 351-key hotel on Hayat Island has performed strongly, maintaining high occupancy rates and driving robust revenue.

Anantara Mina Al Arab Hotel and Resort: This five-star hotel, with 174 rooms, began operations in January 2024 and has already exceeded its financial targets.

Planned and Future Projects –

Nikki Beach Resort and Staybridge Suites: RAK Properties has partnered with Nikki Beach Global to develop a branded resort and beach club in Mina Al Arab. Additionally, a strategic collaboration with IHG Hotels & Resorts will introduce Staybridge Suites on Hayat Island.

Anantara Branded Residences: RAK Properties and Minor Hotels are set to launch Anantara Branded Residences in Mina Al Arab, enhancing the area’s reputation as a premier destination for luxury island living within a vibrant community.