Dubai's construction market bellwether, Emaar Properties, reported today that its profits had plunged 69 per cent in the second quarter
Dubai's construction market bellwether, Emaar Properties, reported today that its profits had plunged 69 per cent in the second quarter as it sold fewer homes and wrote off investments in Dubai Bank.
The UAE's largest developer by market value and the maker of the Burj Khalifa said in a statement to the Dubai Financial Market that net profit stood at Dhs250 million ($68.1 million) for the three month period to the start of July.
That's compared to Dhs801.9 million in the same quarter a year ago. Revenue for the company in the second quarter was down 23 per cent to Dhs2.03 billion.
The firm handed over 244 units during the period down from 612 in the second quarter last year and since handing over of the Burj Khalifa at the start of last year has turned its attention to revenue generation from its mall and hospitality holdings. It has also set up a team charged with compiling a strategic review of its operations.
During the quarter the developer also wrote off its investment in Dubai Bank which is estimated at just over Dhs170 million.
It noted in the filing that revenue from rental and hospitality income was similar to the first quarter of the year and 24 per cent higher than the second quarter of 2010.
Mohamed Alabbar, Emaar's chairman said: "Having redefined the property landscape of Dubai through our fully established master-planned communities, Emaar's current focus is on identifying and strengthening our operations by taking into account the current social, economic and political changes across all our key markets."
The statement silenced any fears that the firm's developments in Egypt have been affected by the February uprising that saw president Hosni Mubarak removed from power.
"Emaar's developments in Egypt are also progressing well and construction is being carried out at all projects launched and sold," it said.
© 7Days 2011
