RAK Properties — Earnings Release 2026

May 11, 2026

RAK PROPERTIES ENTERS 2026 WITH RESLIENCE AND CONTINUITY WITH QI RESULTS SHOWING DEVELOPER ADVANCING ON KEY PROJECTS ACROSS PLANNED PIPELINE

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Ras Al Khaimah, UAE - 12th May, 2026: RAK Properties (ADX: RAKPROP), Ras Al Khaimah's leading publicly listed property developer, has announced its financial results for the first quarter of 2026. Up to date figures show progress has been maintained across core objectives and masterplans, with major contracts awarded, key construction milestones achieved, and advancements in planned pipelines, all supported by a robust operational framework and amidst evolving regional dynamics.

Q1 2026 KEY HIGHLIGHTS

• Q1 revenue: AED 278 million, driven by the contribution of multiple projects at different stages of design, delivery, completion and handover.

• Units under construction: Launched projects on Raha Island and Hayat Island comprise 5,000+ units.

• Profit before tax: AED 43.62 million, as RAK Properties continues to manage its operational efficiencies across all business units.

• 2026 handovers: RAK Properties plans to hand over 1,400 homes during 2026.

• Development backlog: AED 3.44 billion reflects transition into a new launch and delivery cycle as well as providing clear visibility on future revenues.

• Financial Standing: Q1 recorded total assets worth AED 8.82 billion coupled with Capital & Reserves at AED 5.98 billion.

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DISCIPLINED PERFORMANCE, EXECUTION, AND DELIVERY

RAK Properties reported revenue of AED 278 million with profit before tax of AED 43.62 million for the first quarter of 2026. A development backlog of AED 3.44 billion provides clear visibility on forward revenue and planning.

Sales value across projects achieved a total of AED 228 million in Q1 for 129 units. The quarter saw the conclusion of revenue recognition from several projects at the handover stage, including Bay Residences Phase II, with Granada II, Beach House, and Bay Views being readied for handover during Q2 2026. In conjunction, a new phase of previously launched developments is entering key construction points, with revenue streams scheduled to be recorded in later quarters, in line with planned progress. During the quarter, RAK Properties awarded the main contract for SKAI, and expects to award multiple construction contracts during Q2 2026 across Mirasol, Anantara Residences, ENTA, Solera, Nura, and Mirasol II.

During the period up to 31st March, RAK Properties awarded total contracts to the value of AED 268 million across multiple disciplines geared around advancing design, construction, FM, sales, and marketing of the Company's projects. In addition to the 101 homes handed over to customers during the first quarter, RAK Properties expects to handover an additional 1,300 homes during the course of 2026, bringing the total count to over 1,400 units – a record year for the Company.

HOSPITALITY PERFORMANCE UPDATE

RAK Properties' hospitality portfolio has demonstrated market leading performance over the quarter, demonstrating their enduring appeal to domestic and international tourists. The InterContinental Ras Al Khaimah Resort and Spa, which boasts 351 keys on Hayat Island, Mina, has performed to an occupancy rate of 61%, generating revenues of AED 29 million and a RevPAR of AED 585. The 174 key Anantara Mina Ras Al Khaimah Resort is performing ahead of target, solidifying Mina's position as a premier luxury destination. During the quarter, occupancy levels were stable at 63%, generating revenue of AED 25 million with RevPAR of AED 912.

Bar Du Port Beach, Ras Al Khaimah, the iconic beach club, restaurant and bar, opened to the public at the end of February and although it is too early for it to have had a meaningful impact on this quarter's financial performance, the Company expects it to soon become a key contributor to the recurring revenue portfolio.

RAK Properties continues to advance discussions with two international hotel operators to bring a 4-star lifestyle driven property to Raha Island, and a 3-star lifestyle driven property to the mainland portion of its Mina land bank.

During the period up to 31st March, RAK Properties awarded total contracts to the value of AED 268 million across multiple disciplines geared around advancing design, construction, FM, sales, and marketing of the Company's projects. In addition to the 101 homes handed over to customers during the first quarter, RAK Properties expects to handover an additional 1,300 homes during the course of 2026, bringing the total count to over 1,400 units – a record year for the Company.

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MINA'S DESTINATION APPEAL

Mina, RAK Properties' flagship community masterplan, maintained its trajectory in Q1, with hospitality projects activating productive growth streams. February saw the opening of the F&B concept Bar Du Port Beach, with renowned hospitality brands Hunter & Barrel and Tashas set to follow with openings earmarked for later this year.

Progress on Mina's collection of branded residences, a key strategic advantage for RAK Properties, also continues. The concept masterplan for the Four Seasons Private Residences project has been finalised, while groundwork officially got underway on the highly anticipated Armani Beach Residences Ras Al Khaimah at Mina, with the appointment of a contractor to carry out core beach works.

This combination of premium accommodation, branded residences, and world-class hospitality projects in progress further underscores the appeal of Mina as a major tourism and residential destination.

LAUNCH OF THE STRAND

During Q1, RAK Properties officially unveiled The Strand, its new master-planned destination at Marjan Beach. With an anticipated gross sales value of AED 12 billion, The Strand is a project of significant scale, covering c. 186,000 square meters, with design works recently awarded to global architecture firm, Chapman Taylor.

The Strand's strategic location, with bridge access to the upcoming Wynn Resort and proximity to other key hospitality landmarks, positions it to capture demand for premium real estate while showcasing the next phase of RAK Properties' vision to grow as a multi-masterplan developer.

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The first project within the new masterplan, Lunara on The Strand, was launched in March. Representing approximately AED 1 billion in value, this inaugural residential phase consists of 583 homes across three connected towers, with units ranging from one- and two-bedroom apartments to three-bedroom penthouses.

ECONOMIC STABILITY

The stability of the operating environment in Ras Al Khaimah in Q1 2026 was underscored by S&P Global affirming its 'A/A-1' long- and short-term sovereign credit ratings with a stable outlook. While S&P adjusted its 2026 growth forecast for Ras Al Khaimah to 2.0% to reflect the impact of regional dynamics on key economic sectors, the report highlighted the Emirate's strong fiscal fundamentals, including very low government debt and a substantial net asset position, as providing significant buffers to navigate market uncertainties.

FUTURE OUTLOOK

While RAK Properties' business operations continue to navigate a transitional period, the outlook remains cautiously optimistic. The Company's revenue backlog is healthy, supported by ongoing construction activities that provide a solid foundation for sustained performance.

RAK Properties' strategic focus on diversifying its product offering, with price points catering to a broad spectrum of market demands, has resulted in sustained interest, evidenced by high levels of confidence expressed by international investors during a recent roadshow in the Netherlands.

The event, Second Home 2026, showed that appetite among international clients remains sold, which supports RAK Properties' strategy of refraining from engaging in discounting, although the developer is actively exploring options around more flexible payment structures designed to broaden accessibility to global clients.

Overall, RAK Properties remains confident in its long-term strategy and operating framework to successfully navigate the upcoming 9-12 months, anticipating a return to strong growth in 2027 as established projects mature and the market continues to adapt and settle.

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LONG-TERM FOCUS

Abdulaziz Abdullah Al Zaabi, Chairman of RAK Properties, commented: "The first quarter of 2026 has underscored RAK Properties' strategic resilience amidst a dynamic market and evolving business environment. In acknowledging our sustained financial results, the continued handover of homes to new owners, and robust pipeline, our Q1 performance shows the unwavering resolve and operational fortitude that exists across every facet of our Company.

"As we move ahead in our mission to enhance Ras Al Khaimah's enduring appeal through ongoing projects, highly anticipated launches, and esteemed global partnerships, we will attentively integrate the insights and successes from these recent months into our future endeavors. This approach will further solidify our foundations for what promises to be a year of progress and development for RAK Properties. Our focus remains on delivering exceptional residences and high-quality branded properties throughout Ras Al Khaimah, as we navigate towards a positive remainder of 2026."

Sameh Muhtadi, CEO of RAK Properties, said: "While this quarter's results reflect what has been a transitional period for the UAE real estate market, we remain focused on the methodical execution of our long-term strategy. The leadership of Ras Al Khaimah and the UAE have displayed strategic resilience and unwavering commitment throughout Q1, empowering RAK Properties with the confidence to deliver on our plans and follow through with upcoming developments. As such, we continue to make steady operational progress, moving forward with key contractor awards and breaking ground on milestone projects. Importantly, we're delivering completed homes, with significant numbers of units scheduled for handover in 2026.

"While sustained interest from clients, the growth of Mina and launch of The Strand, indicates that we are on the right path for sustained growth, we must use the lessons of Q1 to further upgrade operations and improve efficiencies to maintain our connections with partners, clients and stakeholders. As we move into Q2 and beyond, our efforts provide clear visibility for what lies ahead and we remain focused on managing the rest of the year to ensure long-term value and consistent growth."

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