Real estate firm beats analysts' forecast with net profit of Dh997m in the three months to June 30
Emaar Development Q2 income climbs 73% as residential projects boost revenues
Emaar Development reported a 73 per cent year-on-year jump in the second quarter net income, beating analysts' forecast, as "strong" demand for its residential projects boosted revenues.
Net profit for the three months ending June 30 rose to Dh997 million, the realty firm said in a statement to the Dubai Financial Market where its shares are traded. The results beat Sico Bahrain's estimate of Dh754m and EFG Hermes' projection of Dh785m, according to a Reuters poll.
Quarterly revenues surged 145 per cent to Dh3.72 billion.
"Developing premium real estate assets" in the UAE remains the company's core strategy, Mohamed Alabbar, chairman of Emaar Development and Emaar Properties, said.
"We will continue to seek opportunities for developing property assets that create long-term value for our stakeholders.”
Emaar Development, the real estate arm of UAE's biggest developer Emaar Properties, reported a net profit of Dh1.82 billion during the first six months of the year, a 68 per cent year-on-year rise. The company, which floated its shares on the DFM in the fourth quarter of 2017 in the largest listing on the bourse since 2014, reported firs-half revenue of Dh6.99bn as total sales for the period reached Dh6.23bn, it said.
Emaar Development has a total sales backlog of more than Dh38.50b, most of which will be recognised as revenue over the next three to four years, the company said.
Construction is ongoing "per schedule" for handover of the first waterfront homes in Dubai Creek Harbour – the Dubai Creek Residences in Creek Island Dubai – next year, Emaar Development said.
Developers in the UAE are facing a tough domestic market as demand for property declines, pushing down values and rents.
Residential rents in Dubai dropped by an average of 5 per cent year-on-year in the second quarter of 2018 and declines are expected to continue in the second half of 2018, as the ‘tenant’s market’ persists due to rising supply and a fight for affordability, consultancy Cavendish Maxwell said in a July report.
Emaar Development's parent Emaar Properties, however, announced a Dh30b partnership with Abu Dhabi's Aldar Properties in March to pool resources and jointly build projects, betting on the long-term prospects of the country's real estate market.
Emaar Development, on Monday said, it has launched the sale of over 3,600 residential units across its portfolio in Dubai in the first six months of 2018. The company currently has a development pipeline of more than 60 residential projects in the UAE comprising more than 28,000 units.