Emaar Properties, the largest developer in the region, has announced profits of Dh612 million (US$166.6m) for the third quarter, down about 7 per cent from the same quarter last year.
The results were lower than analyst estimates, pulled down by higher costs, a lower-than-expected delivery of units in the Burj Khalifa and the Dh75m impairment of one of its associates.
"We believe that the cost of running the hotels and malls is getting higher," said Chet Riley, an analyst at Nomura Securities. "Together with the holding cost of units that haven't been delivered, less Burj Khalifa deliveries and impairments, their profits missed our expectations." While Emaar's revenues were 5 per cent higher for the quarter at Dh2.78 billion, its costs rose by more than double to Dh1.75bn, an income statement shows.
The company did not identify which of its associates declined in value, but analysts said yesterday a 195.6m Saudi riyal (Dh191.5m) loss at its subsidiary Emaar Economic City in Saudi Arabia could account for it.
An even larger issue looming for Emaar is its 45 per cent stake in the troubled mortgage provider Amlak Finance.
Amlak has refused to revalue nearly Dh4bn of property investment and advances paid for unfinished developments, even though prices have dropped by an average of 50 per cent across Dubai and as high as 70 per cent in some areas.
Mr Riley said if Amlak revalued the investments downward by 50 per cent, it would wipe out most of the Dh2.1bn worth of shareholder equity in the company. That could mean a major impairment of Emaar's investment.
Emaar said it had delivered 45 per cent of the units in the Burj Khalifa, the tallest building in the world. Nomura had expected a delivery of about 54 per cent by the end of last month.
Property developers recognise revenue only after delivering finished units to buyers.
Mohamed Alabbar, the chairman of Emaar, said yesterday the results were "a testament to the strength of our diversified growth model".
Last month Emaar raised $500m through a five-year convertible bond it would use to repay short-term debt.
bhope@thenational.ae
RESULTS
Catchweight 82kg
Piotr Kuberski (POL) beat Ahmed Saeb (IRQ) by decision.
Women’s bantamweight
Corinne Laframboise (CAN) beat Cornelia Holm (SWE) by unanimous decision.
Welterweight
Omar Hussein (PAL) beat Vitalii Stoian (UKR) by unanimous decision.
Welterweight
Josh Togo (LEB) beat Ali Dyusenov (UZB) by unanimous decision.
Flyweight
Isaac Pimentel (BRA) beat Delfin Nawen (PHI) TKO round-3.
Catchweight 80kg
Seb Eubank (GBR) beat Emad Hanbali (SYR) KO round 1.
Lightweight
Mohammad Yahya (UAE) beat Ramadan Noaman (EGY) TKO round 2.
Lightweight
Alan Omer (GER) beat Reydon Romero (PHI) submission 1.
Welterweight
Juho Valamaa (FIN) beat Ahmed Labban (LEB) by unanimous decision.
Featherweight
Elias Boudegzdame (ALG) beat Austin Arnett (USA) by unanimous decision.
Super heavyweight
Maciej Sosnowski (POL) beat Ibrahim El Sawi (EGY) by submission round 1.
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
hall of shame
SUNDERLAND 2002-03
No one has ended a Premier League season quite like Sunderland. They lost each of their final 15 games, taking no points after January. They ended up with 19 in total, sacking managers Peter Reid and Howard Wilkinson and losing 3-1 to Charlton when they scored three own goals in eight minutes.
SUNDERLAND 2005-06
Until Derby came along, Sunderland’s total of 15 points was the Premier League’s record low. They made it until May and their final home game before winning at the Stadium of Light while they lost a joint record 29 of their 38 league games.
HUDDERSFIELD 2018-19
Joined Derby as the only team to be relegated in March. No striker scored until January, while only two players got more assists than goalkeeper Jonas Lossl. The mid-season appointment Jan Siewert was to end his time as Huddersfield manager with a 5.3 per cent win rate.
ASTON VILLA 2015-16
Perhaps the most inexplicably bad season, considering they signed Idrissa Gueye and Adama Traore and still only got 17 points. Villa won their first league game, but none of the next 19. They ended an abominable campaign by taking one point from the last 39 available.
FULHAM 2018-19
Terrible in different ways. Fulham’s total of 26 points is not among the lowest ever but they contrived to get relegated after spending over £100 million (Dh457m) in the transfer market. Much of it went on defenders but they only kept two clean sheets in their first 33 games.
LA LIGA: Sporting Gijon, 13 points in 1997-98.
BUNDESLIGA: Tasmania Berlin, 10 points in 1965-66
Coming soon
Torno Subito by Massimo Bottura
When the W Dubai – The Palm hotel opens at the end of this year, one of the highlights will be Massimo Bottura’s new restaurant, Torno Subito, which promises “to take guests on a journey back to 1960s Italy”. It is the three Michelinstarred chef’s first venture in Dubai and should be every bit as ambitious as you would expect from the man whose restaurant in Italy, Osteria Francescana, was crowned number one in this year’s list of the World’s 50 Best Restaurants.
Akira Back Dubai
Another exciting opening at the W Dubai – The Palm hotel is South Korean chef Akira Back’s new restaurant, which will continue to showcase some of the finest Asian food in the world. Back, whose Seoul restaurant, Dosa, won a Michelin star last year, describes his menu as, “an innovative Japanese cuisine prepared with a Korean accent”.
Dinner by Heston Blumenthal
The highly experimental chef, whose dishes are as much about spectacle as taste, opens his first restaurant in Dubai next year. Housed at The Royal Atlantis Resort & Residences, Dinner by Heston Blumenthal will feature contemporary twists on recipes that date back to the 1300s, including goats’ milk cheesecake. Always remember with a Blumenthal dish: nothing is quite as it seems.
More on Quran memorisation:
