Emaar says net profits up 384 per cent
Emaar Properties PJSC on Sunday announced that its net profits for the first six months of this year to June 30 climbed 384 per cent, to a record AED 2.533 billion (some US$690 million).
The figures represent a substantial increase on the AED 523 million for last year’s first half.
Revenues for the half year showed similar growth moving up 94 per cent to AED 4.717 billion, from AED 2.433 billion for the same period for 2004. Annualised Earnings Per Share (EPS) reached AED 1.83, compared to AED 0.39 for the same period last year.
Mr. Mohamed Ali Alabbar, Chairman of Emaar Properties, said: “Emaar has delivered on its promises and on its projects and in the process boosted value for our shareholders. Today, Emaar is not only one of the biggest real estate companies in the world it is also one of the most profitable.”
Up to June 30, 2005, Emaar delivered more than 10,000 homes to owners and launched more than 50 real estate projects.
During the last quarter Emaar has launched La Colecc’ion II and Alvorada at Arabian Ranches, Park Island at Dubai Marina, Parklands and Fairways at Emirates Living. Recently, Emaar also launched the Al Hambra and Montgomerie Maisonettes which overlook the Montgomerie Golf Course.
During this period, The National Housing Programme under the direction and initiative of HH Sheikh Mohammed bin Rashid Al Maktoum was launched to provide 10,000 residential homes to UAE Nationals to be developed by Emaar.
In May 2005, Emaar also witnessed the signing of an agreement with Giorgio Armani SpA for the development of a unique international collection of ‘Armani Hotels and Resorts.’
Mr. Alabbar added: “This has been an excellent performance, one inspired by the leadership, support and motivation of HH General Sheikh Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and the UAE’s Defence Minister. His Highness’ influence has been instrumental in ensuring that today, Emaar is one of the world’s leading developers.”
On Saturday, Emaar won support from shareholders for its 1:1 rights issue which will result in an increase in the number of shares from 2,835,500,000 to 5,671,000,000. The rights issue premium price for each share of AED 1 per share has been fixed at AED 4 to be paid in four installments. The funds raised will underpin Emaar’s international business expansion and Dubai operations. The company also announced a 15 per cent bonus share issue on the existing number of shares as part of the total package to the rights issue. Share holders also approved to raise the limit of foreign ownership in the company’s equity to 49 percent.