(MENAFN- Khaleej Times) Company expects earnings to surge 19% to dh3.
emaar properties dubai’s largest listed real estate developer predicted on wednesday that its profits would more than quadruple by 2018 as the emirate’s economy booms and the company’s overseas business expands.
emaar is involved in projects across much of the middle east including saudi arabia egypt and turkey and countries as far afield as pakistan and indonesia. — kt photo
the company relies heavily on real estate development tourism and the retail industry. emaar chairman mohamed alabbar told the company’s annual general meeting that he expected net profit to hit dh3.07 billion ($837 million) this year.
that would mark an increase of 19 per cent from last year’s dh2.57 billion. alabbar predicted a continued rise in subsequent years hitting dh5.82 billion in 2016 and dh10.93 billion in 2018.
“these are realistic expectations and even a bit conservative” he said adding that the company only booked profits upon completing projects. much of emaar’s growth is expected to come from projects worth billions of dollars within dubai; over the last 18 months the company has announced plans for huge residential and commercial developments in the emirate. last month the company said it would sell up to 25 per cent of its shopping mall unit in coming months through a public offer expected to raise between dh8 and dh9 billion one of the region’s largest equity offers since 2008. shares in the unit may be listed in london and dubai.
emaar is also involved in projects across much of the middle east including saudi arabia egypt and turkey and countries as far afield as pakistan and indonesia. “we don’t guarantee the economic and political situations in the countries we operate. in egypt for example the company halted operations for around six months during the revolution” of 2011 alabbar said. shareholders approved a 15 per cent cash dividend and a 10 per cent bonus share issue for 2013; it was the company’s highest dividend since 2007 when the cash dividend was 20 per cent. the cash dividend for 2012 was 10 per cent of share capital.
emaar shares are up 43 per cent so far this year to dh10.95 but many analysts see room for further gains; brokerage naeem late last month raised its target price to dh13.15.
“the projections for 2014 and 2015 are way too conservative and may be disappointing to some especially when we take into account contributions from subsidiaries in india egypt and saudi arabia” said mohammed ali yasin managing director of nbad securities in abu dhabi. the shares fell as much as 4.1 per cent in dubai trading and were down 1.8 per cent at dh10:75 as of 12:30pm.
the stock has surged 41 per cent this year giving the company a market value of dh6.5 billion. emaar expects to generate dh120 billion of profit in the next 15 to 20 years the chairman said. the company’s land bank is around 25 million square meters (269 million square feet) he said.
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