The UAE-based leading investment company, Dubai Investments (DI) reported a strong $55 million (Dh204.88 million) profit for the third quarter, which meant that the nine-month profit for 2020 did not fall far below the total for last year.
In the first nine months this year, the holding company recorded $106 million (Dh391.63 million) as profit against $117 million (Dh433.13 million). But this year’s total was swelled by the $21 million (Dh79.25 million) DI recorded as ‘other income’ in the third quarter. (The profit came to $26 million (Dh98 million) in Q3-2019.)
Despite COVID-19 and the collapse of the economy, the company which runs a popular industrial park has not seen a sharp decline in rental income. So far this year, rental income is $175 million (Dh643.91 million), against $185 million (Dh680.61 million).
Total income for the nine months was $517 million (Dh1.9 billion) again boosted by returns of $209 million (Dh768.33 million) for the third quarter. Dubai Investments saw sharp gains from the valuations of assets and the selling of some investments it owned.
“Despite the challenging times, we were able to achieve strong performance this quarter. The 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.”
This month, the company is checking investor sentiment with the launch of an IPO for a $136 million (Dh500 million) real estate fund by its subsidiary Al Mal Capital. In January, the fund will be listed on the Dubai Financial Market (DFM).
“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,” added Mr. Kalban.
For the first half ended June 30 this year, Dubai Investments posted a net profit of $55.8 million, compared to $96.11 million for the same period last year.