Friday, October 30, 2009

Emaar records Dh 655mn profit in third quarter 2009

Emaar Properties, the largest developer in the region, has reported a net operating profit for the 3rd quarter at Dh.655m, which is 48 percent higher than that of second quarter operating profit of Dh.442m.
According to Emaar, the increase in profits have been due to scheduled handover of Alma townhomes in Arabian Ranches during the third quarter and better returns on some foreign ventures.
Emaar posted a third-quarter net profit of Dh.655mn, an increase by revised net loss of Dh.417mn during the same period last year. Emaar shares closed 0.2 percent higher at Dh.4.61 on Thursday, an increase from a low of Dh.1.77 in March.

The increase in earnings follows a net loss of Dh.1.29bn during the second quarter this year, mostly due to write-down of its business in the US, John Laing Homes, which filed for bankruptcy protection in February this year. Emaar bought the US developer in 2006 for more than one billion dollars.

The Company also switched over to new accounting process in April which books a profit only when completed property is handed over. Emaar recorded net profit of Dh.1.51bn during the third quarter of last year before changing over to new accounting procedure.
The market is also awaiting for conclusion of merger between Emaar, Sama Dubai, Tatweer and Dubai Properties.

Emaar is generating income from its hospitality unit, with the completion of The Address Dubai Mall, a hotel in Downtown Burj Dubai, during third quarter. Meanwhile, the flagship shopping center, the Dubai Mall, which opened last October, has 1000 stores and Emaar Healthcare Group opened its first medical center at Downtown Burj Dubai.

Emaar has also completed several of its overseas ventures, while the others under construction abroad are making good progress.

Emaar will open the Burj Dubai, the world's tallest tower on 2nd December, which has attributed to the rise in profit to the handover of property at Arabian Ranches.

According to the Chairman of Emaar, Mohamed Alabbar, the focus for first nine months this year has been on project completion and strengthening of customer relationships.

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