Emaar’s Q3 revenues soar 43%

DUBAI — Emaar Properties on Wednesday said it posted a third-quarter net income of Dh612 million as its revenues surged 43 per cent to Dh2.782 billion from Dh1.948 billion in the same period in 2009.

By Issac John

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Published: Thu 28 Oct 2010, 11:37 PM

Last updated: Mon 6 Apr 2015, 11:45 AM

Third-quarter net operating profit was Dh687 million, “which is at similar level as the profit for the third quarter of 2009,” the property developer said in a statement. However, net income slipped seven per cent from Dh655 million in the third quarter of 2009, lower than analysts’ projections.

In the first nine months of 2010, the developer of the world’s tallest tower, recorded net operating profits of Dh2.343 billion, up 67 per cent over the same 2009 period, mostly driven by strong recurring revenue from its hospitality and malls businesses, the statement said.

Revenue for the first nine months of the year reached Dh8.320 billion, 53 per cent higher than the revenue of Dh5.429 billion in the first nine months of 2009.

Emaar said that approximately 45 per cent of the total units in Burj Khalifa, the world’s tallest building, have been handed at the end of the third quarter, 2010. The developer is now putting greater emphasis on its shopping malls and hospitality businesses.

“Our strategic developments in shopping malls and hospitality are now yielding strong recurring revenues, which highlights our commitment to investing in the long term,” Emaar Chairman Mohamed Alabbar said.

“The sales collection has been robust during the quarter providing additional liquidity to the company. In addition, with a view to convert short-term liabilities into long-term debt, Emaar launched a $500 million of convertible notes due in 2015. The bond received overwhelming response with a demand in excess of $3 billion,” the developer, whose Indian joint venture Emaar-MGF is embroiled in a row with government over the Commonwealth Games Village construction.

Alabbar described “the solid results” posted by Emaar during the first nine months of the year are testament to the strength of the company’s diversified growth model. “We have successfully focused on our strategy of geographic expansion in promising markets and delivered on our core competency of creating world-class real estate developments.”

“The challenges of the global financial slowdown are behind us, and we are entering a new phase of growth, complementing the vision of Dubai outlined by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai,” he said.

Alabbar said Emaar had continuously focused on energising the domestic market by creating job opportunities and supporting ancillary industries. “Our businesses complement this outlook by driving Dubai’s GDP growth, making Emaar an active partner in the Emirate’s socio-economic development and a driving force in realising the city’s ambitions.”

Emaar’s embattled Indian unit, Emaar-MGF has reduced the size of a proposed initial public offering to $356 million. Recently, Emaar said it would take any action necessary to protect the interests of the Indian unit following a move by the Indian government to impose fines on the joint venture for defects and delays in the Games Village it built in New Delhi.

issacjohn@khaleejtimes.com



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