Emaar Properties PJSC (EMAAR) rose to the highest level in almost six years after the developer of the world’s tallest tower beat first-quarter profit expectations.
The shares surged as much as 3.3 percent to 11.10 dirhams, before trading at 11 dirhams as of 10:51 a.m. in Dubai, the highest on a closing basis since July 2008. Net income climbed 55 percent to 863 million dirhams ($235 million) in the first three months of the year, the company said in a statement to the Dubai stock market after trading closed yesterday. That compares with the 739 million dirhams average of four analysts’ forecasts compiled by Bloomberg.
The Dubai-based company is benefiting from a real estate-led economic recovery in the emirate, where prices for mid-range apartments rose 43 percent in 2013, according to Cluttons LLC data on Bloomberg. Developers are also set to benefit from about $8 billion of infrastructure spending planned as Dubai prepares to host World Expo 2020.
“It’s a decent result and Emaar continues to witness strong demand for its properties,” Nayal Khan, head of institutional sales and trading at Naeem Holding in Dubai, said in e-mailed comments today.
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