Dubai property developer Nakheel made record high profits of AED4.96bn ($1.35bn) during 2016.

“2016 was a momentous year in which we met and completed all of our restructuring obligations by repaying all AED4.3bn of the trade creditors sukuk from our own resources – and recorded our highest ever net profit since Nakheel’s inception,” said Nakheel Chairman Ali Rashid Lootah when commenting on the results.

The annual net profits are a 13 per cent increase on the 2015 net profit of AED4.38bn. Nakheel says the improved year-on-year performances were driven by the company’s retail, hospitality and residential leasing businesses.

During the fourth quarter of 2016, Nakheel made a net profit of AED955m – up 22 per cent on the AED781m made during the same period of 2015.

Nakheel says the 2016 results take its cumulative profits since 2010 to AED19.9bn.

For development projects Nakheel continued to deliver residential, retail and hospitality projects during 2016. It handed over 1,426 land and built units, primarily in its Palm Jumeirah, Jumeirah Park, Al-Furjan and International City developments.

Nakheel Malls further expanded its operating retail portfolio by opening its phase one extension at Ibn Battuta Mall, neighbourhood Pavilions at International City and Al-Furjan and the Club Vista Mare restaurant plaza on Palm Jumeirah. These added almost 400,000 sq ft of net leasable area to previously-existing retail assets, bringing the total operational leasable space to 4.3 million sq ft by the year-end.

These new projects helped retail revenues grow by more than 70 per cent in 2016 when compared to 2015. Other retail projects, which will bring Nakheel’s total leasable space to 17 million sq ft, is under development.

Nakheel Hospitality commenced operations at hotels Dragon Mart (ibis Styles, operated by Accor) and Ibn Battuta Mall (operated as a Premier Inn), which have 623 rooms between them. The response to these properties has been overwhelming, reflecting positively on the properties’ location and highlighting the demand in this sector.

These new assets meant revenues from Nakheel’s hospitality business jumped by 50 per cent in 2016 compared to 2015.

Nakheel also says that residential leasing also performed well in 2016, with occupancy rates remaining at almost 100 per cent. More residential leasing space is expected to become operational in 2017.