Emaar Properties, Dubai’s largest listed developer, reported a rise in first quarter earnings for the year 2019, along with a surge in property sales.
The company’s Q1 2019 net profit amounted to 1.74 billion United Arab Emirates dirhams ($473.71 million), compared to 1.63 billion dirhams in Q1 2018, in line with Shuaa Capital’s estimate.
“Emaar’s quarterly performance remained resilient despite the ongoing headwinds witnessed by the broader real estate market in UAE,” Harshjit Oza, vice president of research at Shuaa Capital said in a note published on Monday.
Emaar Properties’ Q1 2019 revenue amounted to 5.89 billion dirhams, a 0.67 percent drop fromthe 5.93 billion dirhams revenue made in the first quarter of 2018.
“Off-plan sales (new sales) remained strong at AED5.98bn (up 53 percent YoY), leading to a strong backlog build-up of AED50bn to be recognised over the coming years. The surge in off-plan was driven by sales to international customers (AED2.645bn, up 123 percent YoY),” Oza added.
The company said in a press release published on Sunday that “the strong backlog reflects the robustness of Emaar’s financial position to maintain high revenue, profitability and return to shareholders in the foreseeable future.”
The company’s shares edged 0.64 percent lower on Monday to 4.69 dirhams but have added 13.56 percent so far since the start of 2019.
“We maintain HOLD/ Equal Weight on Emaar with TP (target price) of AED6.15/ share,” Oza said.
(Reporting by Gerard Aoun; Editing by Michael Fahy)
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