Oct. 23 (Bloomberg) -- Emaar Properties PJSC, Dubai’s biggest developer by market value, said third-quarter earnings dropped 4.7 percent, missing analysts’ estimates, after revenue declined.
Net income fell to 387 million dirhams ($105 million), or 6 fils a share, from 406 million dirhams, or 7 fils, a year earlier, the Dubai-based company said in a statement today. Analysts forecast earnings of 476 million dirhams, the average of six estimates in a Bloomberg survey.
“While real estate revenue was much weaker than we expected, the quarterly performance is not an immediate indicator of the current market conditions and depends on Emaar’s delivery schedules in all of its territories,” Jan Pawel Hasman, an analyst at EFG-Hermes Holding SAE in Cairo, said in an e-mail today. Hasman has a buy rating on the stock.
Emaar, the builder of the world’s tallest tower in Dubai, is expanding across the Middle East as an oversupply of properties in Dubai hurts the company’s home market. Emaar’s malls and hotels have helped cushion the effect of the region’s real estate crisis by providing stable revenue.
The earnings were published after the close of trading in Dubai. Shares of Emaar have risen 46 percent this year, compared with a 22 percent increase for the Dubai Financial Market General Index.
Revenue declined 12 percent to 1.64 billion dirhams in the third quarter, Emaar said. Real estate revenue dropped 28 percent to 798 million dirhams compared with 1.1 billion dirhams in the same period last year, EFG’s Hasman said.
Emaar plans to build a 200-room hotel with 542 serviced apartments near its Burj Khalifa skyscraper in Dubai as lodging and shopping centers contribute a growing proportion of revenue. The company also bought a plot in Dubailand from Dubai Properties Group to build a mixed-use development.
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