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Emaar posts 9-month profit of Dh1.2b

By Issac John DUBAI -- Emaar Properties on Thursday announced a net operating profit of Dh1.249 billion on a revenue of Dh5.873 billion in the first nine months of 2011.

The Dubai-based company, the biggest developer in the UAE by market value, said in a statement that its third-quarter profit dropped 34 per cent to Dh406 million compared to the same 2010 period as revenue declined and property delivery slowed. Third quarter 2011 revenue stood at Dh1.859 billion.

The outcome reflects the general slackness in the property market that has seen a 60 per cent drop prices after speculative demand waned and banks tightened lending from in mid-2008, analysts said.

Following the announcement, Emaar shares rose 4.8 per cent in Dubai trading to close at Dh2.6 on Thursday.

Mohamed Alabbar, Chairman of Emaar Properties , said the continued increase in revenues from Emaar 's malls and hospitality business mirrored the growth achieved by Dubai in its core business sectors, highlighting the company's contribution to the emirate's economy.

"Dubai's growth vision, as outlined by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, focuses on promoting its retail, tourism and hospitality sectors. By creating global icons and prime real estate assets, Emaar has consistently focused on delivering Dubai's vision, creating new jobs and powering the growth of ancillary industries," Alabbar explained.

" Emaar 's focus on emerging markets and further driving its profitable subsidiaries is strategic, and in line with our commitment to offer long-term value for our stakeholders," said Alabbar.

The nine-month performance of Emaar was underlined by the sustained growth of its hospitality and leisure and shopping malls and retail subsidiaries, the continued demand for homes and commercial space within its established communities such as Downtown Dubai, and the hand-over of prime real estate assets in international markets, including Turkey, Jordan and Syria, the developer said.

The developer handed over 712 residential and commercial properties to owners in Dubai during the first nine months, including 201 in the third quarter.

Emaar said its showpiece Dubai Mall hosted 39 million visitors in first nine months while its hotel portfolio recorded average occupancy of 80 per cent.

Residences in several master-planned developments of Emaar in other global markets including Saudi Arabia and Egypt -- two of the biggest markets in terms of demand for 'affordable luxury' homes -- will be handed over shortly, adding to the company's revenue stream in the coming months.

In the first nine months of the year, Emaar further expanded its Dubai property portfolio with the delivery of residential units and commercial offices in Burj Khalifa, its dedicated office development in Downtown Dubai -- the Boulevard Plaza and its first office development in Dubai Marina -- Marina Plaza.

In the coming months, Emaar Middle East, a subsidiary focused on development projects in the Saudi Arabia, will hand over the first homes in the Kingdom at its Al Khobar Lakes development in the Eastern Province. Homes in Jeddah Gate will also be handed over shortly, underscoring Emaar 's commitment to meet the growing demand for 'affordable luxury' in the Kingdom.

The developer said it was also progressing with the handover of homes in Egypt, where the first phase of its flagship projects, Uptown Cairo and Marassi, are in the final stages of completion.

© Khaleej Times 2011