Dubai Investments Q3 profits surge 36pc

02/11/2016 05:50 AST

Dubai Investments (DIC), a leading, diversified investment company listed on the Dubai Financial Market, reported strong third quarter results with net profit for the third quarter surging to Dh334.4 million ($91.04 million), an increase of 36 per cent over Dh246.1 million achieved during the same quarter last year.

The net profit for the first nine months of 2016 also increased to Dh850 million ($231.41 million), up 13 per cent compared to Dh752 million for the same period last year. Total income increased by 17 per cent to Dh2.2 billion ($598.94 million) from Dh1.9 billion for the previous period.

The key driver of strong performance was rental income, which increased by Dh113 million in the first nine months of 2016 to Dh654.3 million from Dh540.9 million in 2015. Gain on fair valuation of investment properties was also higher by Dh67.2 million to Dh315.1 million from Dh247.9 million in 2015. During the period, Dubai Investments recorded gain on disposal of subsidiaries amounting to Dh186 million.

Earnings per share were Dh0.21 for the nine months ending September 30, 2016, up from Dh0.19 in the previous period. Dubai Investments generated annualised return on equity of 10.3 per cent while the return on assets was 7.1 per cent.

In line with its growth plans, Dubai Investments’ total assets reached Dh16 billion as of September 30, 2016, an increase of Dh797 million since the beginning of the year. The assets include Dh9.7 billion of real estate assets, Dh3.1 billion of manufacturing and contracting assets and Dh3.2 billion of investments/ treasury assets.

Khalid Bin Kalban, managing director and CEO of Dubai Investments, commenting on the third quarter results, said: “Dubai Investments generated another strong set of results in the third quarter of 2016. Property assets continue to perform well contributing to growth in rental income accompanied by improved performance in the manufacturing and contracting sectors.”

He added: “Dubai Investments will continue to expand its position in real estate and look for growth and diversification opportunities in attractive sectors. Since last year, Dubai Investments began to invest in the education and healthcare sectors and the Company is currently evaluating various proposals to expand in these sectors. In the core segment of real estate, Dubai Investments Real Estate is all set to launch Mirdif Hills – a mixed-use development and the only freehold development in Mirdif area in Dubai. Continuing with these plans, Dubai Investments expects to see enhanced performance for the remaining of 2016.”

Dubai Investments currently owns over 40 subsidiaries and joint ventures across a broad range of sectors and continues to monitor opportunities, both locally and internationally, as part of its strategic, financial and operational roadmap.

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