http://www.arabianbusiness.com/586661-e ... rofit-207m
Dubai's Emaar Q1 profit flies past forecasts
by Reuters on Thursday, 22 April 2010
Emaar Properties, builder of the world's tallest skyscraper, said on Thursday it would focus on expanding in the Middle East, North Africa and South Asia in 2010, after its first-quarter profit more than tripled.
The Dubai developer's net profit soared, boosted by revenues from its hospitality and retail business, and easily beat analysts' forecasts.
Emaar, the Arab world's largest listed developer, said net profit in the first quarter surged 221 percent from the same period last year, to 760 million dirhams ($206.9 million). The firm recorded no impairments for the quarter
Analysts in a Reuters survey had forecast an average profit of 584.68 million dirhams for Emaar.
"On first glance, better than expected," said analyst Chet Riley at Nomura. "One of the key things for these guys was developing the investment portfolio/reoccurring income streams, which it looks like they're doing.
"They had a strong fourth quarter and finish to the year last year, and maintained that momentum in Q1."
Revenue surged 87 percent to 2.89 billion dirhams in the first quarter, Emaar said.
Revenues were "underpinned by the robust performance of the company's hospitality and shopping mall subsidiaries during a period when the company opened the world's tallest building, Burj Khalifa," it said in the statement.
It said its joint venture Emaar MGF is on course with its 2.79 billion dirham ($759.6 million) initial public offering.
Emaar MGF said earlier this month it will launch its IPO in 90 days.
"India is one of our key markets in our global expansion strategy," Mohamed Alabbar, the firm's chairman said in the statement.
Emaar has a land reserve of around 11,340 acres across 26 cities in India, 96 percent of which is paid for, he said, adding that the firm has total development plans for about 437 million square feet, of which nearly 335 million square feet is proposed as residential projects.
The developer will hand over projects in Egypt, Jordan, Saudi Arabia and Syria this year, it said.
Emaar's shares closed 2.9 percent higher at 3.9 dirhams a share in trading on Thursday, outperforming Dubai's benchmark <.DFMGI> which rose 1.4 percent to 1,755 points.
Among Emaar's high-profile assets is Dubai Mall, the world's largest shopping centre, and the developer also has a joint venture with Italian fashion house Georgio Armani to develop hotels. (Reuters)
