RAK Properties Reports Strong First Half 2024 Financial Performance

RAK Properties, the leading publicly listed property developer in Ras Al Khaimah, has announced its consolidated financial results for the first half of 2024. The company has demonstrated robust financial growth and strategic advancement during this period.

Revenue and Profit Growth

RAK Properties achieved a revenue of AED 610 million for H1 2024, marking a significant 19% increase from AED 512 million in the same period of 2023. This impressive growth is attributed to the high demand for its diverse property offerings, including residential, commercial, and hospitality projects. The success of flagship developments in Mina Al Arab has been particularly notable. The company also reported a healthy increase in profit before tax, rising by 11% to AED 98 million. This growth reflects RAK Properties' ongoing investment in its development pipeline to meet evolving market needs.

Abdulaziz Abdullah Al Zaabi, Chairman of RAK Properties, said: “We are proud to report a solid performance in the first half of 2024, reflecting the dedication of our team, the resilience of our business model and the burgeoning real estate landscape in Ras Al Khaimah and the wider UAE. The Government of Ras Al Khaimah's increased stake in the company to 34% in June also demonstrates clear confidence in our strategic vision and growth trajectory. We remain committed to creating exceptional value for our shareholders and contributing to the continued growth of Ras Al Khaimah."

Sameh Muhtadi, CEO of RAK Properties, commented: “The first half of 2024 has seen sustained growth for RAK Properties, driven by strong demand across our diverse property portfolio, reinforcing our leadership in the real estate market.

"The growing global interest in our properties, coupled with the strong performance of our hospitality assets, is a testament to the strength of our brand and the dynamic growth of Ras Al Khaimah. With exciting new projects underway and a robust pipeline of future developments, we are confident in our ability to continue delivering revenue growth. This momentum is further amplified by the increased stake from the Government of Ras Al Khaimah and our proactive approach to emerging market opportunities."

"Our outlook remains bright, underpinned by the solid fundamentals of Ras Al Khaimah and our unwavering commitment to excellence and delivering exceptional value to our stakeholders."

Key Financial Highlights

-- Revenue: AED 610 million, a 19% increase from AED 512 million last year.

-- Gross Profit: AED 228 million, up 40% from AED 163 million the previous year.

-- Profit Before Tax: AED 98 million, an 11% increase from AED 88 million.

-- Total Assets: AED 7.79 billion as of H1 2024, compared to AED 6.46 billion at the end of 2023.

-- Total Equity: AED 5.31 billion as of H1 2024, up from AED 4.30 billion at the end of 2023.

Development Highlights

Residential Projects

> Bay Residences: All 661 apartments in Bay Residences Phase 1 and Phase 2 are sold out. Construction is 75% complete, with handover on schedule.

> Gateway Residence 2: This eight-storey residential tower at Hayat Island, with 146 fully sold-out apartments, is on track for handover by the end of 2024.

> Marbella Villas Phase 2: Construction of the additional 89 villas and townhouses is nearing completion and remains on track for early handover.

> Bay Views: A 344-unit urban residential complex on Mina Al Arab’s Hayat Island. All apartments sold out shortly after launch.

> Cape Hayat: A luxury collection of 678 apartments with direct beach access. 86% sold; construction began at the end of 2023 and is progressing as planned.

> Quattro Del Mar: A new project featuring an integrated lifestyle hub. 60% of the inventory sold as of Q2 2024, with construction expected to start in Q3 2024.

> Granada II Phase 2: Consists of 80 townhouses, launched in Q2 2024. Construction commenced in Q3 2024, with completion planned for Q1 2026.

> Edge: A yacht-inspired waterfront residential tower on Raha Island, offering 237 units. 30% of the inventory sold since its launch in Q2 2024.

> NB Collection: A bespoke collection of 11 high-end beachfront villas, with a planned completion date of late 2026.

Hospitality Projects

> Intercontinental Ras Al Khaimah Mina Al Arab Resort and SPA: This hotel, featuring 351 keys, continues to perform well with high occupancy rates and strong financial revenue.

> Anantara Mina Al Arab Hotel and Resort: A 174-key luxury hotel that began operations on January 2, 2024, has exceeded its performance targets.

Planned Projects

> Nikki Beach Global Partnership: RAK Properties will open the first branded resort and beach club in Mina Al Arab.

> IHG Hotels & Resorts Expansion: Introduction of the 156-key 'Staybridge Suites Mina Al Arab' on Hayat Island to diversify the hospitality portfolio.

> Ellington Properties Collaboration: Development of a premium waterfront residential project on Hayat Island, combining the strengths of both companies to offer an exceptional living experience.