Emaar profits rise by Dh3.04b in ’05

The world's number one property developer in terms of market capitalisation said property revenues increased by Dh3.113 billion or 59 per cent to Dh8.361 billion during the period as compared to Dh5.248 billion for the year 2004.

Significantly, the earnings per share increased to Dh0.85 per share for the year 2005 from Dh0.33 per share for the year 2004.

Mohamed Ali Alabbar, Chairman, Emaar Properties said: "Emaar reaffirmed its position as the world's leading property developer in 2005 with unprecedented expansion into new markets with developments stretching across continents and sectors."

"His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has shaped modern Dubai and transformed our Emirate into one of the 21st century's extraordinary success stories," he maintained.

2005 has been a defining year in the company's history and one that will be the cornerstone for continued growth. To date, Emaar has handed over 12,800 homes to owners in Dubai and launched over 50 real estate projects across the region, Alabbar said.

"Under His Highness' continued guidance and support, we aim to build Emaar into the most valuable brand for the real estate sector globally," he added.

2005 also witnessed Emaar's flagship development, the Burj Dubai, grow with at an unprecedented rate with a number of high profile launches during the year. From the corporate side with its Burj Dubai Business Hub announcement to the residential side with The Old Town Island, The Residences villas and penthouses, The Lofts, 8 Boulevard Walk and South Ridge, Emaar launched a total of six projects within Dubai's new downtown last year.

With construction work progressing at a rapid pace, Emaar's iconic 'super' tower Burj Dubai — the tallest in the world when completed in 2008 — climbed to its twenty fifth storey height this month and will continue to average one floor per week.

Emaar's most significant announcement is that of the launch of the King Abdullah Economic City in December 2005 with an investment of more than SR100 billion. The company also expanded its influence across the region by rolling out its unique lifestyle models with ventures in Morocco, Syria and Egypt. Its regional expansion represents a total investment of more than Dh150 billion.

2005 also saw Emaar announce plans to aggressively expand the retail sector with investments of over Dh15 billion to develop approximately 100 malls in the mega emerging markets of the Middle East, North Africa and the Indian subcontinent.

Shares down

BY BABU DAS AUGUSTINE

DUBAI — In a sharp reaction to the less-than expected Q4 profit, Emaar's share price fell to its lowest since September last year.

Emaar's net income rose 59.6 per cent to Dh1.04 billion in the three months ended December 31 from Dh652 million reported in Q4 last year. 

“The market expected the last quarter profits to be more than Dh1.3 billion. The decline yesterday shows investors' disappointment with the results,” said an analyst. Emaar's shares fell 2.4 per cent to Dh22.05 yesterday on the Dubai Financial Market. Emaar has reported other operating income of Dh592 million for the full year. It was not immediately known if this included income from the sale of shares of Dubai Bank.

Although Emaar's opportunities have been shrinking in the UAE, analysts expect the company to keep the margins through its overseas ventures. Last year the company announced a number of international ventures in Saudi Arabia, India, Jordan, Morocco, Lebanon, Algeria, Pakistan and Syria.

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