Emaar Properties Q1 net profit slips 8pc
Dubai, April 30, 2013
Emaar Properties, Dubai's largest property developer, reported an 8 percent drop in first-quarter net profit on Tuesday, missing analysts' forecasts, as sales and administration expenses rose sharply.
The builder of the world's tallest tower, the Burj Khalifa, reported a profit of Dh556 million ($151.4 million) in the quarter ended March 31, compared to Dh606 million in the prior-year period.
A Reuters poll of six analysts had predicted an average net profit of Dh600 million.
Selling, marketing, general and administrative expenses were up 26 percent in the quarter to Dh531 million.
Mohamed Alabbar, chairman of Emaar Properties, said: “Emaar’s first quarter 2013 results are conclusive proof of the remarkable resurgence of Dubai’s property, retail and hospitality sector and the unwavering confidence of investors in Emaar’s developments.”
“With a significant pipeline of new world-class real estate projects, we have underlined our industry leadership, while contributing further to the city’s economic growth. The overwhelming response to our project launches, from investors in Dubai and international markets, clearly reiterates Dubai’s position as a global hub for business and investment,” he added.
Emaar’s shopping malls & retail and hospitality & leisure businesses contributed Dh1.167 billion to the first quarter 2013 results. This is 11 per cent higher than the first-quarter 2012 revenue from the two businesses of Dh1.054 billion.
Individually, shopping malls & retail business recorded revenues of Dh750 million, 36 per cent of total revenue.
Emaar’s hospitality & leisure business contributed Dh417 million to the company’s first quarter 2013 revenues, accounting for 20 per cent of the total. The company’s hotels in Dubai, including its flagship Address Hotels + Resorts and Armani Hotel Dubai recorded an average occupancy of 91 per cent in the first three months. – Reuters & TradeArabia News Service