For the fiscal year 2022, IFA Hotels & Resorts recorded year-end revenue of KD39,618,309 (US$129,155,687), with a net profit attributable to the Owners of the parent company totaling KD3,974,843 (US$12,957,988) which is 4.56 fils per share.
Shareholders’ equity increased to KD5,367,223 (US$17,497,147), while the company’s total assets decreased by 14.67% to KD198,470,067 (US$647,012,418) compared to KD232,604,027 (US$758,289,128) for 2021.
The year 2022 saw a continuation of the recovery in both the hospitality and residential verticals post the low points of mid-2020. Average rev par in hospitality improved significantly as have rates per foot on residential assets.
The key highlight for the UAE residential development business has been our launch in partnership with Omniyat of “Orla”. Orla comprises 91 “Super Luxury” residential units situated on plot C17 of the Crescent, Palm Jumeirah. Launched in the second half of 2022, 70% of the properties had been booked or sold by the end of the fourth quarter. The sales value at that point totaled close to 2.5 Billion AED with a projected sell-out value of over 4.2 Billion AED. The project shall stand out at the highest level of quality in design and finishes, for what has become an extremely competitive segment of Dubai’s real estate development market.
Revenues in both Fairmont The Palm and Laguna Tower have exceeded those achieved prior to the COVID pandemic and, with the hard decisions taken during that period, we have achieved higher profitability in a more disciplined operational management culture.
Despite the varied socio-economic challenges presented during and after the Covid-era, the Zimbali Lakes Resort development not only survived, but it has also flourished.
Capital growth prospects for the region are strong, making it an attractive investment opportunity; and the limited land left for development is becoming increasingly expensive, making property ownership in Ballito a valuable investment.
The first land transfers in Zimbali Lakes Resort took place in February 2022, with transfers to the value of R517M concluded. Land sales continue positively into 2023.
The fully sold 129-unit apartment-style development, Boulevard Suites was completed, and transfers commenced in August 2022. The demand for apartment-style living led to the launch and development of a new 34-unit development, Boulevard Edge, with anticipated transfers in Q3 2023.
The Legends JV benefitted from business interruption claims received from the COVID-19 Pandemic. We continue to manage the business efficiently while market conditions gradually improve. Trading conditions in the Entabeni business continue to improve as occupancy levels return to normal.
To conclude, 2022 has seen a buoyant and rapidly changing real estate market in Dubai. Coupled with the improvement in the hospitality sector beyond the expected levels of ADR, the picture for the year has been very positive. We foresee the coming year with a resilient hospitality and real estate market, barring macroeconomic headwinds which may change these conditions in the latter half of the year.
Once again, this is an opportunity to extend appreciation to our shareholders, management, and staff members for their ongoing support and we look forward to continued success in 2023.
KHALED ESBAITAH Chairman & CEO
TALAL JASSIM AL-BAHAR Vice Chairman