May 31 (Bloomberg) -- Nakheel PJSC, the state-controlled builder of artificial islands off Dubai’s coast, reported a first-quarter profit after a year-earlier loss as it delivered more completed properties to buyers.
Net income totalled 362 million dirhams ($98.6 million) in the three months through March, compared with a 36 million-dirham loss a year earlier. Revenue more than doubled to 1.35 billion dirhams, Nakheel said in an e-mailed statement today.
The result, along with an increase in 2011 profit, “indicate a relatively more stable real estate market in Dubai where Nakheel is a dominant player,” the company said. Profit last year rose to 1.28 billion dirhams from 1 billion dirhams a year earlier.
Nakheel restructured $16 billion of debt after Dubai’s property market collapsed following the onset of the global financial crisis. The company wrote down $21 billion of assets from 2008 to mid-2010, as Dubai property prices slumped by more than 65 percent.
The developer issued 3.8 billion dirhams of Islamic notes in August as part of the restructuring. The yield on the 10 percent debt has fallen 534 basis points so far in 2012 to 12.97 percent at 12:13 p.m. in Dubai today.
First-quarter profit was also boosted by 22 million dirhams in cost cuts and recurring revenue from the company’s leasing and retail businesses, Nakheel said. The value of the company’s assets increased to 25.4 billion dirhams.
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