Local developer Nakheel is continuing with its strategy to grow its recurring revenues from assets such as shopping malls, hotels, and leased residential properties.
The company, which reported a net profit of AED4bn ($1.08bn) for the first nine months of 2017 – a 2.5 per cent increase on the AED3.91bn of net profit for the same period last year, has maintained steady revenues this year.
“Revenues were almost the same as last year,” Nakheel chairman Ali Rashid Lootah told MEED on 26 October. “We are doing a lot of construction for the company, our revenue on recurring income is increasing and that is our focus.”
One area of particular focus will be opening more food and beverage (F&B) outlets. “We are also focussing to increase our hospitality and F&B there is a room for growth there as we see it,” said Lootah.
Nakheel is also selling land and built form assets, despite softening prices in Dubai. “We are still selling, we are not in a position where we are going to dump our land, we have good locations and good communities and we are selling in JVC [Jumeirah Village Circle], JVT [Jumeirah Village Triangle], in Al-Furjan, so the demand is there. These are established communities, everything is there,” said Lootah. “In good locations the price is resilient, there are no desperate sales or dumping. This is for land and built form.”