Emaar Properties to give special dividend

Developer to give lower than expected special dividend of Dh0.56 per share, according to analyst

Image taken in Dubai downtown, outside an Emaar Development construction site.

Image taken in Dubai downtown, outside an Emaar Development construction site.

Emaar Properties’ board approved to give Dh4 billion as special dividend to be paid in two parts, the company said in a statement on Tuesday.

The first tranche of Dh3 billion will be paid in January 2018, and the remaining Dh1 billion will be paid following the annual general meeting in April 2018.

“The board considered the funding and cash requirements of the company in light of ongoing development of large projects and approved the proposal to distribute a special dividend of Dh4 billion ...,” the company said in a statement posted on Dubai Financial Market’s website.

According to analysts, Emaar Properties will pay a special dividend of Dh0.56 per share to the shareholders, and that would mean a special yield of 7.2 per cent, a far cry from what Emaar paid to its shareholders after the IPO of Emaar Malls, when the company paid Dh9 billion from total inflows of Dh9.3 billion.

“The special dividend is below our expectations. Overall, a 7.2 per cent one-off dividend yield is disappointing in the short-term, however, we continue to see risk-reward balance as favourable in Emaar Properties in the medium-term,” Ankit Gupta, vice president at Shuaa Capital told Gulf News.

Emaar Properties shares, which did not trade on Tuesday, closed at Dh7.70 on Monday. Traders will eye the share price reaction of the bellwether on Wednesday which coincides with the listing of Adnoc Distribution.

Emaar Development shares closed 0.18 per cent higher a Dh5.5 in a strong Dubai market, which closed 1.1 per cent higher.

Emaar Development priced the IPO at Dh6.03 last month, against an indicative range of 5.7-6.9 dirhams per share.

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