- Stock jumps 4.5 percent in Dubai, biggest gain since Aug. 27
- Third quarter net income increases 31% to 843 million dirhams
Emaar Properties PJSC, the developer of the world’s largest mall, rose the most in more than two months in Dubai after reporting a surge in third quarter earnings and sales.
The stock jumped 4.5 percent to 6.48 dirhams at the close of trading in Dubai on Monday, paring this year’s decline to 11 percent. The company on Sunday said net income rose 31 percent to 843 million dirhams ($230 million), or 12 fils a share, from 645 million dirhams, or 9 fils a year earlier. Revenue reached 3.3 billion dirhams, compared with 2.14 billion.
Emaar, which is building large projects such as Dubai Creek Harbour and Dubai Hills, said its assets are valued at over 156 billion dirhams and its land bank reached 195 million square meters in Dubai and across international markets. While Dubai’s housing market has slowed, analysts say the emirate’s real-estate developers and lenders are better prepared than when a crash in 2008 brought the city to the brink of bankruptcy.
“We expect the fourth quarter to show particularly strong numbers, as construction momentum picks up post the summer period,” analysts Mohammad Kamal and Mohamad Haidar at Arqaam Capital wrote in a note to investors on Monday. “Rentals via Emaar Malls continue to post robust growth, and still offer significant upside on the recalibration of tenant contracts that will take place in the next 3 years.”