Emaar Properties reported a 34 per cent drop in profit for the third quarter as home sales slow in Dubai.
Emaar reports 34 per cent profit drop as Dubai home sales slow
Emaar Properties' profit fell 34 per cent for the third quarter from the same period a year ago as home sales slowed in Dubai.
The company reported profit of Dh406 million (US$110m), compared to Dh612 million in the third quarter of last year. Revenue fell 33 per cent, from Dh2.7 billion to Dh1.8bn for the quarter, according to the company's preliminary financial statement.
The company's net profit was down 50 per cent for the nine months ending Sept. 30, to Dh1.249 billion from Dh2.343 in the same period last year.
Emaar didn't address the reasons for the loss in a statement filed with the Dubai stock exchange. Instead the company noted "sustained growth of its hospitality and leisure and shopping malls and retail subsidiaries."
Recurring revenue from the hospitality and shopping malls business accounted for about 41 per cent of the company's total revenue in the first nine months, the company said.
Emaar handed 712 units in the first nine months, including 201 in the third quarter. The nine-month performance included handovers of units in Turkey, Jordan and Syria, where the company completed the Eighth Gate project before the outbreak of political turmoil.
Last year Emaar's numbers were boosted by handovers of apartments in the Burj Khalifa, the world's tallest tower.
Emaar reported its results after the close of a volatile day of trading in the company's shares. More than 20.5 million shares changed hands, making it the most traded stock on the Dubai exchange.
Emaar closed at Dh2.6 a share, a 4.8 per cent increase on the day and the largest jump in its share price since March 9.
Early this week Emaar announced plans to launch a new division focused on developing affordable housing projects around the region. And Emaar chairman Mohamed Alabbar announced the company was looking to raise $700 million in financing from the banks.