Emaar Properties PJSC 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 gained 1.9 percent to 10.95 dirhams, the highest since July 2008, at the close in Dubai. They had advanced as much as 3.7 percent. Net income climbed 55 percent to 863 million dirhams ($235 million) compared with the 739 million-dirham 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. Emaar is also witnessing a “material up-tick in demand” for projects in Egypt and Pakistan, he said.