(MENAFN- Khaleej Times) Emaar Properties on Sunday announced 146 per cent increase in net profit for the second quarter on robust contribution of its subsidiaries.
The builder of the world's tallest tower reported a net profit of Dh614 million for June quarter, compared to Dh250 million in the first quarter, when Emaar wrote off Dh172 million investment in Dubai Bank.
The second quarter profit beats the forecasts of three analysts polled by Reuters, who on average had expected Emaar would make a net profit of Dh516.33 million.
"The bottom line for the quarter came in stronger than our forecasts and consensus expectations which, in our view, is likely to support Emaar's share performance in the short term," said Jan Pawel Hasman, vice-president for equity research at investment bank EFG Hermes.
Dubai's largest property developer made a net profit of Dh1.22 billion for the first six months of the year, showing an 82 per cent surge, compared with Dh671 it posted for the same period last year. "To add long-term value to our stakeholders, we are planning on bigger growth in our home market through projects such as the Dubai Modern Art Museum & Opera House District, and the expansion of The Dubai Mall, in addition to new project launches," Emaar Properties chairman Mohamed Alabbar said in a statement.
Emaar's revenue for the second quarter of 2012 was Dh2.1 billion, 15 per cent higher than the revenue of Dh1.821 billion recorded in the first three months of the year. Its revenue for the first six months was Dh3.921 billion, similar to the revenue for the same period in 2011.
Alabbar said that the real estate market in Dubai is turning around, led by the robust performance of key growth sectors including aviation, retail, hospitality, tourism and foreign trade.
Subsidiaries
Emaar's rental and retail business primarily comprising of Emaar Malls Group, contributed approximately Dh1.3 billion to first half 2012 revenue, which is an increase of 23 per cent as compared to same period in 2011. The shopping mall operations were underpinned by the strong performance of The Dubai Mall which hosted approximately 31 million visitors in the first six months of the year.
Emaar Hospitality Group, the hospitality and leisure business subsidiary of Emaar Properties, recorded revenue of Dh720 million during the first six months of 2012 with an average occupancy of 89 per cent at its flagship Address Hotels + Resorts during the period. Emaar Hospitality Group has now acquired the management of its Al Manzil and Qamardeen hotels in Downtown Dubai, bringing the total number of hotels under its direct management in Dubai to eight, in addition to Armani Hotel Dubai and Armani Hotel Milano.
In all, the hospitality & leisure and shopping malls and retail businesses contributed 51 per cent to the first half 2012 revenue of Emaar.
Projects delivery
Reflecting the positive growth trends in the Dubai property market and in line with the company's development strategy for 2012, Emaar unveiled approximately 200 luxury apartments, Panorama at The Views, which was fully sold on the very first day of public launch.
Likewise, the launch of 18 exclusive Golf Homes and over 60 townhouses - both in Arabian Ranches - during the first half of 2012 witnessed solid investor response. Emaar recorded sales exceeding Dh1.6 billion in the first half of 2012 in Dubai, which is approximately five times as compared to same period in 2011.
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