Manazel Real Estate, a leading UAE developer, has posted a net profit of Dh132.9 million ($36.2 million) for the first six months of the year, up 135 per cent compared to Dh56.6 million during the same period in 2017.

Announcing the 2018 first half results, Manazel said its net consolidated revenues for the period surged 25.29 per cent to hit Dh516.6 million over last year.

The robust financial performance is a testament to the company’s successful diversification strategy into high growth sectors and focus on non-cyclical revenues streams, it added.

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, the Emirati developer inked co-development for three new projects in Yas Island, Dubai Silicon Oasis and Jumeirah Village Triangle (JVT).

This was part of the company’s strategy to expand its presence in the UAE and continue diversifying its real estate recurring revenue portfolio.

Revenue growth remained stable for the period, mainly 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, including Pan Emirates, which have taken up roughly seven per cent of the leasable space of the Capital Mall.

Capital Mall has now leased more than 57 per cent of its gross leasable area (GLA) with additional leases in pipeline is expected to take the leasing to a total of 70 per cent.

On the solid results, 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. – TradeArabia News Service