Dubai Holding Commercial Operations Group (DHCOG) said it had 2011 net profit of AED204 million ($55.54 million), up from AED127 million in 2010.
Total revenues in 2011 fell to AED8.8 billion from AED13.5 billion a year earlier while net cash from operations rose 7.3 percent to AED3.5 billion.
The business and its parent are part of a matrix of firms known informally as Dubai Inc., which includes Dubai World.
“The deleveraging of our debt commitments has been one of the highlights of 2011 and will continue to be our priority in the years to come,” Ahmad bin Byat, DHCOG’s chief executive, said.
Total debt stood at AED12.8 billion. In February, it repaid a $500 million bond as scheduled.
“Strong cash flow, coupled with the proceeds of the monetization of non-core assets, resulted in a significant reduction of total debt,” Byat added.
Sources said recently that Dubai Holding is considering a sale of its remaining 26-percent stake in local mobile phone retailer Axiom Telecom. The stake could fetch a price of $300 million.
DHCOG, whose assets include the Jumeirah hotel group and business parks and hospitality units, said impairment expense in 2011 more than halved to AED2.4 billion from AED5.5 billion in 2010. The impairment charges were related to the company’s real estate and telecoms portfolio.
Dubai Holding holds a substantial portfolio of brands in the property and hospitality sectors, organized under three main groupings: DHCOG, private equity arm Dubai International Capital (DIC) and Dubai Group.
Dubai Group, with investments mainly in financial services, is currently in discussions with lenders over a $10 billion restructuring while DIC reached an agreement with creditors this month to restructure $2.5 billion in debt.
Dubai World reached a final deal with creditors in 2010, extending repayment over five to eight years.
