Emaar Properties said the company missed analysts' forecasts with a 3.85 per cent fall in third-quarter profit as it took a writedown on its US unit amid global financial crisis.

Net income fell to Dh1.5 billion ($408.4 million) in the three months ended September 30 compared with Dh1.56 billion last year.

Profit fell as Emaar took a Dh750 million goodwill writedown related to its US home-building unit, John Laing Homes, the developer said in a statement.

'Although the recent actions by the U.S. government may result in providing support to home builders in the United States, the write-off was considered prudent in view of the current challenging times for all businesses,' Emaar said.

John Laing is suffering from the pains of a US mortgage crisis triggered last year by defaults on subprime mortgages. Emaar bought John Laing for $1.05 billion in June 2006 as the U.S. housing market was peaking after five years of expansion.

Shares in Emaar have been battered during a global market rout this month, falling more than 28 per cent. The stock gained 0.72 per cent on Sunday. Earnings were released after the close of trading.

The quarterly net profit missed all four forecasts in a Reuters survey of analysts last month, which ranged from Dh1.55 billion to Dh2.05 billion.

Emaar plans to start buying back its shares after releasing third-quarter results, it said earlier this month.

Emaar's third-quarter revenue rose 1.9 percent to 4.32 billion dirhams, mainly from domestic property sales, it said.

The developer, whose flagship Dubai developments include the Burj Dubai tower, the world's tallest building, derives more than 80 percent of its revenues from the booming Gulf emirate.

'We believe that the economic fundamentals in the Middle East, North Africa and South Asia region will remain sound,' Emaar Chairman Mohamed Alabbar said. The firm has $100 billion of projects in 18 countries.

Earnings per share were 0.79 dirham in the first nine months, Emaar said, without giving a comparison.

In July, Emaar said real estate sales in Dubai and the surrounding region would likely offset the slowdown at a US unit.

The developer would begin getting revenues from some of the $100 billion of projects it has under construction in 18 countries in the fourth quarter, it had said.

For Emaar, the third-quarter of 2008 was marked by consolidation of its presence in Dubai with the launch of single family home communities and establishing the fundamentals for its expansion into hospitality and leisure and shopping malls, said a top official.

Alabbar pointed out that with projects valuing more than Dh367 billion ($100 billion), Emaar is forging ahead by creating a dominant position in the real estate industry on a global scale.

'Emaar has created a significant brand value and recognition by delivering superior products and world class service to its customers.'

'A balanced portfolio of projects primarily in the emerging growth markets has further assisted us to take advantage of various opportunities and be within the defined risk parameters,' he opined.

'We believe that the economic fundamentals in the Mena and South Asia region will remain sound with higher economic and population growths, resulting in domestic demand to further enable growth in the real estate sector,' he said.

In domestic operations, a highlight of the company’s expansion was the completion of The Address, Downtown Burj Dubai, the first hotel under The Address Hotels + Resorts brand owned and operated by Emaar Hospitality Group, he added.