Drop by 34 pct in profit posted by RAK
RAK Properties

A 34% drop in second-quarter net profit was posted by UAE-based RAK Properties on Wednesday, since the regional property slump cut into earnings. A 73.3 million dirhams ($19.9 million) fall was seen in profits for the period, from 110.7 million dirhams a year earlier.

The developer said in a statement, on the Abu Dhabi bourse website, that second-quarter earnings per share for the period fell to 0.037 dirhams from 0.055 dirhams. The company specified that net profit for first-half fell 36 percent to 143 million dirhams, while 3.12 billion dirhams was the sum of net assets at the end of June, including 485 million dirhams in cash.

Via a statement, RAK said: "The liquidity crisis led to various financial disturbances and created low level of consumer confidence. The general market tendency towards capital spending has dropped drastically and some changes are expected in the second half of the year."

The company had 1.21 billion dirhams in liabilities at the end of the period, including 787 million dirhams in customer installments from customers, shown as payable until projects are delivered.

RAK now mulls to concentrate on providing three projects - Julfar Towers, RAK Towers and Mina Al Arab Precinct 4 - this year and revenue from the developments will be realized on completion.