Emaar Properties PJSC (EMAAR) said second-quarter earnings rose 10 percent, beating analysts’ estimates, as Dubai’s biggest developer by market value completed projects that were delayed by the 2008 property slump.
Net income climbed to 675 million dirhams ($184 million), or 11 fils a share, from 614 million dirhams or 10 fils, a year earlier, the Dubai-based company said in a statement today. The average estimate of six analysts was 529 million dirhams, according to data compiled by Bloomberg.
Emaar, the builder of the world’s tallest tower in Dubai, completed developments including Standpoint Towers and 29 Boulevard Towers in the city’s Downtown area, according to Taher Safieddine, an analyst at Shuaa Capital PSC. Both projects stalled after the property market collapsed.
“The bulk of property sales during the quarter came out of the United Arab Emirates” with 1.7 billion dirhams, Safieddine said in a note to clients today.
Emaar said it started an expansion of the Dubai Mall, already the world’s largest by area. The company is in talks to develop a $2 billion resort in Iraq’s oil-rich Kurdish region.
Revenue climbed 48 percent in the second quarter to 3.11 billion dirhams, Emaar said. Real estate sales for the first half reached 6.3 billion dirhams, almost four times the amount for the year-earlier period, the company said.
Recurring income from retail and hospitality reached 2.3 billion dirhams and accounted for 45 percent of the company’s revenue in the first half, Emaar said. International operations contributed 526 million dirhams, or 10 percent, of the total.
The unit’s growth was driven by the Dubai Mall, Emaar said. More than 38 people visited the shopping center in the first six months, 23 percent more than the year-earlier period.
The results were announced after the close of trading in Dubai. Emaar climbed 1.2 percent in the second quarter, while the Dubai Financial Market General Index (DFMGI) gained about 22 percent.
To contact the reporter on this story: Zainab Fattah in Dubai on firstname.lastname@example.org
To contact the editor responsible for this story: Andrew Blackman at email@example.com