Emaar Properties Q1 profit falls
Emaar Properties, the largest Arab real estate company by market value, posted its second decline in profit in three quarters as revenue stagnated, and marketing and selling costs rose.
Net income in the three months to March 31 fell 3.8% to 1.66 billion dirhams ($451 million), or annualised earnings per share of 1.08 dirhams, compared with 1.72 billion dirhams in the year-earlier period, Emaar said in a statement.
Revenue at its US John Laing Homes unit fell 1.2 billion dirhams compared with the fourth quarter, Emaar said, without providing a year-earlier comparison.
Total revenue declined slightly to 3.96 billion dirhams, compared with 3.97 billion dirhams a year earlier, while marketing and associated costs rose almost 33% to 626 million dirhams, it said.
Emaar Chairman Mohamed Alabbar said in the statement that the company was operating in an "extremely challenging global economic environment".
Analysts' forecasts for Emaar's profit, in a survey by newswire Reuters last month, ranged from 1.7 billion dirhams to 1.98 billion dirhams.
Profit last fell in the third quarter, its first decline in in at least three years as the company spent more on foreign operations in countries such as Egypt.
Still, Emaar generates most of its income from its home market, Dubai, where the economy is surging on a five-fold increase in oil prices during the last six years that has spurred investment in the Gulf.
Emaar's UAE first-quarter sales rose to a record 5.6 billion dirhams, it said without giving a year-earlier comparison.
Two-bedroom apartments at Burj Dubai tower, the world's tallest building and part of a $20 billion residential and commercial project Emaar is building close to the city centre, start at 12.64 million dirhams each, according to its website.
In the fourth quarter, the company beat the average of analysts' forecasts with a 1.3% increase in profit on falling construction costs as the Burj Dubai project nears completion.
The tower alone will cost about $900 million and is due to open this year, though Alabbar said last month that construction was four months behind schedule.
The shares have fallen more than 24% this year, compared with a fall of about 7% for Dubai's main stock index. (Reuters)
Net income in the three months to March 31 fell 3.8% to 1.66 billion dirhams ($451 million), or annualised earnings per share of 1.08 dirhams, compared with 1.72 billion dirhams in the year-earlier period, Emaar said in a statement.
Revenue at its US John Laing Homes unit fell 1.2 billion dirhams compared with the fourth quarter, Emaar said, without providing a year-earlier comparison.
Total revenue declined slightly to 3.96 billion dirhams, compared with 3.97 billion dirhams a year earlier, while marketing and associated costs rose almost 33% to 626 million dirhams, it said.
Emaar Chairman Mohamed Alabbar said in the statement that the company was operating in an "extremely challenging global economic environment".
Analysts' forecasts for Emaar's profit, in a survey by newswire Reuters last month, ranged from 1.7 billion dirhams to 1.98 billion dirhams.
Profit last fell in the third quarter, its first decline in in at least three years as the company spent more on foreign operations in countries such as Egypt.
Still, Emaar generates most of its income from its home market, Dubai, where the economy is surging on a five-fold increase in oil prices during the last six years that has spurred investment in the Gulf.
Emaar's UAE first-quarter sales rose to a record 5.6 billion dirhams, it said without giving a year-earlier comparison.
Two-bedroom apartments at Burj Dubai tower, the world's tallest building and part of a $20 billion residential and commercial project Emaar is building close to the city centre, start at 12.64 million dirhams each, according to its website.
In the fourth quarter, the company beat the average of analysts' forecasts with a 1.3% increase in profit on falling construction costs as the Burj Dubai project nears completion.
The tower alone will cost about $900 million and is due to open this year, though Alabbar said last month that construction was four months behind schedule.
The shares have fallen more than 24% this year, compared with a fall of about 7% for Dubai's main stock index. (Reuters)
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