RAK Properties

1. Company Overview & Earnings Context

RAK Properties PJSC is an Abu Dhabi Securities Exchange (ADX)-listed real estate developer focused on residential, hospitality and mixed-use developments in Ras Al Khaimah. During H1 2026, the company continued to advance its large-scale Mina masterplan, delivering homes, launching new projects and expanding its hospitality portfolio despite regional economic headwinds. While financial results declined compared with the exceptionally strong first half of 2025, RAK Properties maintained a robust balance sheet, increased its asset base and reported a development backlog of AED 3.30 billion, providing strong visibility into future revenues.

2. Financial Performance Snapshot

• Revenue: AED 533.14 Million (-31.2% YoY)

• Gross Profit: AED 213.93 Million (-31.9% YoY)

• Operating Profit: AED 103.77 Million (-49.2% YoY)

• Profit Before Tax: AED 84.04 Million (-52.3% YoY)

• Net Profit: AED 76.65 Million (-52.3% YoY)

• Earnings Per Share (EPS): AED 0.026 (-51.9% YoY)

Compared with H1 2025:

• Revenue declined 31.2% to AED 533.14 million.

• Gross profit declined 31.9% to AED 213.93 million.

• Operating profit declined 49.2% to AED 103.77 million.

• Profit before tax declined 52.3% to AED 84.04 million.

• Net profit declined 52.3% to AED 76.65 million.

• Earnings per share declined from AED 0.054 to AED 0.026.

3. Operational Highlights & Key Metrics

• Total Assets: AED 8.86 Billion

• Total Equity: AED 6.02 Billion

• Development Backlog: AED 3.30 Billion

• Homes Under Planning, Development & Delivery: 5,000+

• Homes Handed Over in H1 2026: 264

• Full-Year 2026 Handover Target: 1,400 Homes

• Cash & Bank Balances: AED 579.92 Million

• Investment Properties: AED 2.22 Billion

4. Key Performance Drivers

RAK Properties continued executing its development strategy across the Mina masterplan, with 264 homes handed over during H1 2026 and several major residential projects nearing completion. The company also launched The Strand masterplan, advanced the Four Seasons Resort & Branded Residences project, and expanded its hospitality portfolio with the opening of Bar Du Port Beach and Ladurée. While revenue and profits were lower year-on-year due to the timing of development revenue recognition, the company maintained a sizeable development pipeline and backlog that supports future earnings visibility.

5. Outlook & Forward Guidance

Management remains focused on delivering 1,400 homes during 2026 while continuing to expand its residential and hospitality portfolio. The company expects its diversified pipeline of more than 5,000 homes across various stages of development, together with its strong capital base of AED 6.02 billion, to support long-term growth. RAK Properties also plans to continue launching strategic branded developments and strengthening its position within Ras Al Khaimah's growing real estate market.

6. Investor Takeaway

Although H1 2026 earnings were lower than the exceptionally strong prior-year period, RAK Properties continued to make meaningful operational progress through project launches, home deliveries and hospitality expansion. Supported by a strong balance sheet, a AED 3.30 billion development backlog and one of the UAE's largest residential pipelines, the company remains well positioned to benefit from Ras Al Khaimah's long-term real estate growth.