ABU DHABI, 16th August, 2018 (WAM) — Manazel Real Estate Thursday reported its financial results (unaudited) for the six months ended 30th June, 2018. Manazel’s net profit for H1 2018 was AED132.9 million, representing a 135 percent increase, compared to AED56.6 million during the same period last year. Consolidated revenues for the six months recorded were AED516.6 million, up 25.29 percent against H1 2017.
Manazel’s robust financial performance for H1 2018 is a testament to the company’s successful diversification strategy into high growth sectors and focus on non-cyclical revenues streams. With the increasing demand for affordable housing, Manazel continued to capitalise on this segment with a focus on recurring revenues, which contributed to the continued growth of revenue streams and earnings.
During the first half of 2018, Manazel inked co-development for three new projects in Yas Island, Dubai Silicon Oasis and Jumeirah Village Triangle. This was part of the company’s strategy to expand its presence in the UAE and continue diversifying its real estate recurring revenue portfolio.
Commenting on the results, Manazel’s CEO Yaqoob Al Doseri said, “Our strong financial performance for the first half of 2018 reflects the successful execution of our de-risked business strategy to create additional revenue streams through diversifying our asset portfolio and sustainable growth as we remain committed to our strategy of high growth model using co-development, with the focus on recurring revenues.”
“With a focus on long-term value creation, we are looking forward to continue expanding our presence into high growth sectors, which support our growing asset and recurring income portfolio,” he added.
Revenue growth remained stable for the first half, driven by solid recurring income streams from Manazel’s portfolio of mall/retail developments, commercial and residential properties, facilities management and district cooling assets. Manazel’s Capital Mall has attracted some of the region’s top retail brands. Capital Mall’s has now leased more than 57 percent of its Gross Leasable Area with additional leases in pipeline is expected to take the leasing to a total of 70 percent.
Manazel Real Estate’s subsidiaries and retail operating arm, Manazel Specialists, Census International and Manazel Malls, also made significant contributions towards the overall H1 2018 financial performance.