Dubai Investments reports 32% profit drop for second quarter

Dubai Investments, in which sovereign wealth fund Investment Corporation of Dubai has an 11.54 per cent stake, reported a 32.4 per cent drop in second quarter net profit on higher expenses and a loss on fair valuation of investments.

Net profit attributable to the owners of the company fell to Dh129.1 million in the three months to June 30, Dubai Investments said on Tuesday in a statement to the Dubai Financial Market, where its shares are traded.

The financial statements noted a Dh23.4m loss on fair valuation of assets as well as higher finance, administrative and other expenses in the three-month period, and an impairment loss of Dh28m during the first half of the year. The company also reported a 2 per cent rise in net profit to Dh491m for the first half of 2018, driven mainly by the acquisition of Emirates District Cooling (Emicool) in January, it said. The company posted a 25 per cent year-on-year rise in first quarter net profit to Dh361.9m.

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“Dubai Investments registered steady growth in its financial results during the first half of 2018,” said Khalid Bin Kalban, managing director and chief executive of Dubai Investments. “The increase in total income, net profit and total assets is quite encouraging given the challenging economic environment and has been driven mainly by the strategic acquisition of Emicool.”

Dubai Investments is developing several real estate projects including Mirdif Hills, the third phase of Green Community Dubai Investment Park, and Fujairah Business Centre. The company is also “progressing towards its diversification strategy and various proposals related to education, health care, leisure activities and financial services are being assessed and evaluated,” Mr Bin Kalban added.

He told The National in April that the group plans to list a mixed-use real estate investment trust by the third quarter of this year. His statement on Tuesday said Dubai Investments subsidiary Al Mal Capital is working with regulators to list the Reit "before the end of the year".