Emaar Properties second-quarter earnings outpace forecasts

Recurring revenue from malls, retail and hospitality businesses, which made up 45 per cent of total first-half revenue, grew 10 per cent to Dh2.9 billion between January and June from the same period last year.

Tourists and visitors watch and take photos of the fountain at Dubai Mall, which was developed by Emaar Properties. Kamran Jebreili / AP Photo

Emaar Properties yesterday said firm growth at its retail, malls and hospitality units led a 16 per cent rise in second-quarter earnings that beat expectations.

Net profit rose to Dh1.18 billion from the same period last year as revenue rose 16 per cent to Dh3.48bn from the first quarter.

The Securities & Investment Company of Bahrain had forecast a second-quarter net profit of Dh817 million.

Recurring revenue from malls, retail and hospitality businesses, which made up 45 per cent of total first-half revenue, grew 10 per cent to Dh2.9bn between January and June from the same period last year. Emaar Properties did not provide second-quarter figures for such revenues.

International revenue in the first half, which account for 18 per cent of total revenue, rose 36 per cent year-on-year to Dh1.17bn. The second-quarter figures were not provided.

Revenue from Emaar’s property portfolio was Dh3.59bn. It did not provide a comparative figure.

In Dubai, half-year sales reached Dh6.12bn because of end-user and international investor demand. Emaar did not provide comparative figures.

Last year, Emaar said total revenue in Dubai in the first half was Dh9bn.

Meanwhile, the property market in Dubai is weakening because of an increase in supply amid an economic slowdown weighed by lower crude earnings.

The number of completed property deals in the emirate has tumbled by more than two-thirds, according to the realtor JLL.

In June, the credit ratings agency Standard & Poor’s said Dubai property prices could fall between 10 and 20 per cent the rest of this year and early next year after rising three years in a row.

Emaar Properties shares closed down 0.38 per cent to Dh7.87 in Dubai yesterday.

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