Strong third-quarter bolsters Dubai Investments’ nine-month 2020 profits of Dh391.63m
The operator of Dubai Investment Park saw rental income hold fairly steady despite a tough operating environment. Image Credit: Gulf News Archive
Dubai: Dubai Investments recorded a solid Dh204.88 million in profit for the third quarter, which ensured the nine-month 2020 profit did not slip much behind last year’s total.
In the first nine months this year, the holding company recorded Dh391.63 million as profit against Dh433.13 million. But this year’s total was swelled by the Dh79.25 million DI recorded as ‘other income’ in the third quarter. (In Q3-2019, the profit came to Dh98 million.)
Also, DI, which operates a popular industrial park, has not seen a sharp decline in rental income, despite the economy getting struck with COVID-19 and its impact. Rental income so far this year is Dh643.91 million, against Dh680.61 million.
Total income for the nine months was Dh1.9 billion, again swelled by the third quarter returns of Dh768.33 million. DI saw sharp gains from investment valuations and from the sale of some investments it held.
Khalid Bin Kalban, Vice-Chairman and CEO of Dubai Investments, said in a statement: “Despite the challenging times, we were able to achieve strong performance this quarter. Overall business has started to pick-up and we are focusing on successfully navigating through the changing business dynamics.
“Careful review, analysis and optimization of the resources coupled with a competitive growth strategy, has been instrumental in enhancing business endurance.”
DI is testing investor sentiments this month, with the launch of an IPO for a Dh500 million real estate fund by its subsidiary Al Mal Capital. The fund will list on DFM in January.
“In the current environment, investors are looking for secure long-term attractive returns and this REIT and DFM listing will meet investors’ needs, providing a liquid vehicle to access a sector with strong fundamentals,” said Kalban.