Tuesday, Feb 14, 2012
--Profit more than doubles in fourth quarter on international ops, hospitality revs
--2012 strategy to increase share of international revenues as well as recurring income
(Recasts, adds details, background throughout)
By Tim Falconer
Of ZAWYA DOW JONES
DUBAI (Zawya Dow Jones)--Dubai's Emaar Properties (EMAAR.DFM) said it plans to grow the share of revenue it collects from its international operations this year as well as bolstering recurring income as it posted a fourth quarter net profit that was more than double that of the year earlier.
Emaar, in an emailed statement Tuesday, said net profit in the three months to Dec. 31 amounted to 716 million U.A.E. dirhams ($195 million), up sharply from AED274 million a year ago. Earnings per share for the same period amounted to AED0.12, up from AED0.04 in the year earlier.
The company said that during 2011, revenue from its international operations almost doubled to AED1.81 billion as it handed over properties in markets such as Turkey, Pakistan, Syria and Egypt. In total, Emaar handed over 350 residential units and 800,000 square feet of commercial space in Dubai in 2011 and 604 units in other global markets.
Emaar is one of a number of local companies that has over the past couple of years sought to diversify its revenue stream away from a dependence on Dubai. The city-state's once thriving real estate sector has seen prices and rents slump since late 2008 when the global economic downturn first took hold and incoming supply remains substantial even despite numerous project cancellations and delays.
The real estate company said income from its hospitality and leisure business grew by 22% last year to AED1.22 billion, representing 15% of Emaar's overall revenue.
On Monday, Emaar said it plans to expand its flagship asset, The Dubai Mall, by over 1 million square feet, from the existing 12 million square feet development, to include more retail outlets and hotel rooms.
"Our strategy in 2012 is to further increase the share of revenues from global operations and enhance the proportion of profits from recurring revenue streams, including shopping malls and retail and hospitality and leisure," Emaar Chairman Mohamed Alabbar said in Tuesday's statement.
In January, Emaar said it expects Dubai's property market to grow in 2012 across all sectors and the company would continue to focus on affordable housing through its Dawahi Development subsidiary.
"The launch of Dawahi Development is a demonstration of our renewed growth strategy, where we are looking at developing value housing projects to address the demand for mid-price point housing in emerging markets," Emaar's Alabbar said Tuesday.
The company didn't disclose any details about a possible dividend.
Emaar shares closed 1.4% higher at AED2.98 in a broadly positive overall market.
-By Tim Falconer, Dow Jones Newswires; +9714 446-1690; tim.falconer@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
14-02-12 1130GMT
