Shares in Emaar Properties, Dubai’s largest listed developer, edged lower on Thursday, as the company reported a 29 percent year-on-year drop in third quarter (Q3) net profit for the year 2018.

Q3 2018 net profit attributable to shareholders amounted to 1.10 billion United Arab Emirates dirhams ($299.5 million), compared to 1.55 billion UAE dirhams for the same period last year.

Q3 revenue fell 5 percent, reaching 5.33 billion UAE dirhams in Q3 2018 versus 5.61 billion dirhams a year ago.

“Relatively weaker reading for Emaar numbers across 3Q18, with profits down 29 percent YoY (year on year) to 1.1 billion dirhams and a miss on our estimate of 1.3 billion dirhams,” Ayub Ansari, senior analyst at SICO bank, told Zawya by email.

“A 33 percent YoY decline in profitability of their key Dubai real estate subsidiary 'Emaar Development' as well as weaker performance from the ‘Hospitality’ segment contributed to the YoY earnings fall,” Ansari added.

Emaar development, a subsidiary of Emaar properties, reported a Q3 net profit of 682 million UAE dirhams versus 1.03 billion dirhams a year ago.

Emaar Properties’ shares edged 0.2 percent lower on Thursday, while Dubai’s index closed 0.1 percent higher, pushed higher by a 1.83 percent rise in Gulf Navigation Holding’s shares.

Emaar Properties’ stock was the most active in value on the exchange. The company’s share price ended the day at 4.9 UAE dirhams.

Shares in Emaar Properties have dropped 23.2 percent so far this year, underperforming Dubai’s index, which fell 17.55 percent since the start of the year 2018.

Dubai’s real estate market has been suffering in 2018. A Thomson Reuters index of UAE real estate shares has declined in value by 27.35 percent since the start of the year.

In July, Emaar announced the launch of a major retail project at its Dubai Creek Harbour development, with a cost of around 10 billion UAE dirhams. (Read more).

According to data from Eikon, three analysts rated the stock as “Strong Buy”, six analysts rated the stock as “Buy” and two analysts rated the stock as “Hold”.

Elsewhere in the region, Abu Dhabi’s index gained 0.68 percent on Thursday, Saudi Arabia’s index gained 0.1 percent, Qatar’s index edged 0.15 percent higher, while Bahrain’s index edged 0.1 percent lower and Oman’s index dropped 0.2 percent.

By 16:03 GST, Egypt’s blue chip index EGX30 was trading 1.5 percent higher.

(Reporting by Gerard Aoun; Editing by Shane McGinley)
(Gerard.aoun@refinitiv.com)

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