Emaar's Q2 net profit climbs 2% after accounting for unit minority interest

Quarterly income came almost in line with analysts' forecasts

Emaar says its second-quarter revenue grew 55 per cent year-on-year to Dh5.88bn. Bloomberg

Emaar Properties, Dubai's biggest listed developer, posted a 2 per cent yeryear-on-year rise in the second-quarter net profit after accounting for minority interest following its unit Emaar Development's public offering last year.

Net profit for the three months ended June 30 rose to Dh1.48 billion, the company said in an emailed statement on Tuesday. Net income excluding the minority interest climbed 16 per cent to Dh1.68bn. Revenue grew 55 per cent year-on-year to Dh5.88bn during the same period.

The second-quarter profit was marginally below the Dh1.49bn median forecast of two analysts polled by Bloomberg.

“While our property business recorded positive growth with several new residential destinations launched in Dubai, our malls, hospitality, leisure and entertainment business benefited from the increase in tourist arrivals and boost in domestic spending,” Emaar chairman, Mohamed Alabbar, said in the statement on Tuesday.

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Emaar Development, the real estate development arm of Emaar, raised Dh4.82bn from its initial public offering in November - the biggest listing since 2014 and the third-largest IPO offering ever on a Dubai-based exchange. Emaar sold a 20 per cent take in the firm.

“Better-than-expected performance from the property development segment made up for the weaker than forecast performance from the mall retail and hospitality segments,” said Ayub Ansari, an analyst with Sico Bahrain.

“The standout performance was from Emaar’s 79 per cent owned subsidiary Emaar Development, which reported a 73 per cent year-on-year growth in profitability, boosted by accelerated revenue recognition from properties under development.”

Sico is forecasting a full-year net profit rise of 7 per cent to Dh6bn for this year.

Emaar Development reported a 73 per cent year-on-year jump in the second quarter net income to Dh997 million, beating analysts' forecasts, as "strong" demand for its residential projects boosted revenues.

Emaar Malls, the retail unit of Emaar Properties, posted a 15 per cent increase in second-quarter net income, though quarterly footfall was little changed.

Shares of Emaar Properties closed 0.4 per cent down to Dh5.1.