Emaar Q1 profit to near $500m
Profit at Emaar Properties probably accelerated to dhs1.81 billion ($492.9 million) in the first quarter on sales of its Burj Dubai project, according to a survey of analysts. Net income in the three months to March 31 may have risen 5.2 per cent compared with the year-earlier period, when profit was dhs1.72 billion, according to the average forecast of analysts in a survey of three analysts by newswire Reuters.
“It’s the Burj Dubai project being recognised, generating sales,” said Mohammed Kamal, who researches Emaar for Deutsche Bank. He expects profit at the largest Arab real estate company by market value to surge 15.1 per cent. In the fourth quarter of last year, Emaar had beaten the average of analysts’ forecasts, posting a 1.3 per cent increase in profit.
“Margins were higher,” Kamal said of the last three months. In the fourth quarter, profit rose after construction costs declined as the Burj Dubai project neared completion. The tower will cost about $900 million and is due to open this year, though Emaar Chairman Mohamed Alabbar last month said that construction was four months behind schedule.
Egyptian investment bank EFG-Hermes last month kept its short-term ‘accumulate’ and long-term ‘buy’ recommendations for Emaar stocks, citing a rise in the company’s net asset value. It gave the shares a long-term fair value of dhs18.50, compared with Monday’s close of dhs10.95.
The stock has fallen 26.5 per cent this year. Emaar said yesterday that Dubai Mall, to be one of the world’s largest shopping malls, is due to open towards the end of the year. Source
“It’s the Burj Dubai project being recognised, generating sales,” said Mohammed Kamal, who researches Emaar for Deutsche Bank. He expects profit at the largest Arab real estate company by market value to surge 15.1 per cent. In the fourth quarter of last year, Emaar had beaten the average of analysts’ forecasts, posting a 1.3 per cent increase in profit.
“Margins were higher,” Kamal said of the last three months. In the fourth quarter, profit rose after construction costs declined as the Burj Dubai project neared completion. The tower will cost about $900 million and is due to open this year, though Emaar Chairman Mohamed Alabbar last month said that construction was four months behind schedule.
Egyptian investment bank EFG-Hermes last month kept its short-term ‘accumulate’ and long-term ‘buy’ recommendations for Emaar stocks, citing a rise in the company’s net asset value. It gave the shares a long-term fair value of dhs18.50, compared with Monday’s close of dhs10.95.
The stock has fallen 26.5 per cent this year. Emaar said yesterday that Dubai Mall, to be one of the world’s largest shopping malls, is due to open towards the end of the year. Source
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