Abu Dhabi: Real estate developer Emaar Properties, builder of the world’s tallest tower, said yesterday its fiscal first-quarter profit rose 44 per cent on increased sales of properties in Dubai, delivery of homes in Egypt, and strong revenue from malls and hotels.
Net income climbed to Dh606 million, or 10 fils a share, from Dh421 million, or 7 fils, a year earlier, Emaar said in a statement, according to Bloomberg.
Emaar’s first quarter net profit beat analysts’ estimates. The mean estimate of four analysts was for a profit of Dh566 million, according to data compiled by Bloomberg.
Commenting on Emaar’s financial results, Tareq Qaqish, deputy head of asset management at Dubai-based Al Mal Capital, told Gulf News in an email: “Emaar continues to deliver solid results and beats analysts’ estimates. The strong contribution of retail and hospitality business of 58 per cent of total revenues is encouraging and enhances Emaar’s cash flow status. The company’s result is an evidence of change in investors’ confidence and their belief in the long term story of the emirate of Dubai.”
Emaar, owner of the world’s largest mall, is increasingly relying on income from hotels and retail as revenue from residential sales declines. The developer plans to add 92,903 square metres of space to the Dubai Mall, to boost recurring income.
“We have entered a new era of growth for Emaar, focused on identifying new growth opportunities in line with the fast- changing economic environment,” Chairman Mohammad Al Abbar said in the statement. “The expansion that we have announced to the Dubai Mall and our hospitality business are all geared to generate long-term value creation for our stakeholders.”
New unit sales in Dubai rose to more than Dh620 million in the first quarter, Emaar said. Revenue in the three months to March 31 fell 8 per cent to Dh1.82 billion, with shopping malls and retail businesses contributing Dh651 million, and hospitality and leisure businesses contributing Dh403 million in the first quarter, it added.
Emaar handed over 158 residential units in the first quarter, comprising 117 units in Dubai and 41 units in international markets. The company also delivered 16,722 square metres of commercial space. Emaar said it plans new projects this year to “energise” its domestic operations, according to the statement.
Emaar shares dropped 0.9 per cent to Dh3.25 on Thursday.
Emaar’s stock has gained 26 per cent this year, giving the company a market value of Dh19.8 billion.
Last week, Emaar declared a 10 per cent cash dividend, equivalent to about Dh609 million, at its annual general meeting in Dubai.
With total assets of more than Dh60 billion, investment properties and fixed assets of Dh16.4 billion and development property valued at Dh26.2 billion, Emaar highlighted its robust fundamentals in 2011.
Last year, Emaar recorded a net operating profit of Dh2.058 billion and annual revenues of Dh8.112 billion.
By Himendra Mohan Kumar, Staff Reporter