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Emaar Properties posts 2.57 billion dirhams net income, up by 21% in the year 2013

2014-02-17

Emaar Properties PJSC (EMAAR), the Dubai developer that regained its investment grade this month, said annual profit climbed 21 percent, exceeding analyst estimates.  Net income rose to 2.57 billion dirhams ($735 million) from 2.12 billion dirhams a year earlier, the company said today in a statement. That beats 2.4 billion dirhams, the average of 13 analyst estimates compiled by Bloomberg. Revenue climbed 25 percent to 10.3 billion dirhams. “Emaar’s fundamental financial strength is underscored by our diversified growth model, with the shopping malls and hospitality business contributing significantly to the total revenue,” Chairman Mohamed Alabbar said in the statement. Real estate companies in Dubai are benefiting from an economic recovery and a rebound in construction as the Gulf business hub prepares to host the World Expo in 2020 with spending of $8 billion on infrastructure projects. Standard & Poor’s raised Emaar’s rating last week by one level to BBB-, the developer’s first investment grade since it was cut to junk in December 2009 amid a plunge in Dubai property prices following the global credit crisis. Emaar’s hospitality and shopping mall business contributed 46 percent of full-year revenue. Fourth-quarter profit climbed to 48 percent to 756 million dirhams as costs fell by 19 percent. The developer of the world’s tallest tower plans to build Spanish-style villas and a leisure and shopping development near Dubai’s new airport and apartments near Burj Khalifa. Home prices this year may jump 35 percent to 40 percent, Land Department General Director Sultan Bin Mejren said last month. Emaar’s rating improved following the presale of properties, an increase in recurring income the conversion of bonds valued at $475.7 million into shares, S&P said. The company has $2.5 billion of debt outstanding, including a $500 million Islamic bond due in August 2016.