WAM Dubai, May 31st, 2012 (WAM)--Nakheel generated a net profit of AED 362m in the first quarter of 2012, compared to a loss of AED36m in 1Q11. Revenues of AED 1,352m were mainly driven by the handover of development properties in a number of Nakheel projects, up by 159 per cent against revenues of AED 522m in 1Q11.

The Company said in a statement issued today on the preliminary financial results that other business segments including Retail and Leasing also contributed positively to the results. The Company gained favourably from the various operating income segments that continue to be the core area of focus.

It added that effective cost control measures implemented by the Nakheel resulted in further reducing the overheads by AED 22m compared to the corresponding period in 2011. Net assets of the Group increased by c. AED 1bn to AED 24.5bn mainly due to the achieved profit and additional equity funds received during 1Q12.

The Company said the financial performance is reflective of the commitment made by the Board of Directors of Nakheel to implement a sustainable business strategy for the medium to long term and largely due to better cost and cash management. It added that the positive results of 1Q12 following from the robust financial results achieved in the year 2011 continue to indicate a relatively more stable real estate market in Dubai where Nakheel is a dominant player and will continue to strengthen its position with the passage of time.

WAM/MN