Emaar first-half profits climb 384 per cent to record AED 2.533bn (AED 1.208 bn for Q2)

Published July 17th, 2005 - 12:57 GMT

Emaar Properties PJSC today 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.

 

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.”

 

Timely delivery of key phases of Emaar’s residential developments and sustained demand in the domestic real estate market have buoyed the company’s financial performance. 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.”

 

 

 Yesterday, the Company 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.

Notes for editors

About Emaar Properties PJSC
Emaar Properties, a Dubai-based Public Joint Stock Company, is listed on the Dubai Financial Market. The company has witnessed tremendous growth since its inception in 1997 and boasts a rapidly growing tenant base. In June 2005, the company crossed the historic 10,000 mark on the number of homes handed over to satisfied customers. Currently, it has several major real estate projects under various stages of development in Dubai including Arabian Ranches, Dubai Marina, Emirates Hills, The Views, The Meadows, The Springs, The Lakes, The Greens and Emaar Towers. The company also owns and manages the Gold and Diamond Park. Emaar has started construction on its most ambitious project to date, the Burj Dubai Development, which comprises the Burj Dubai, The Dubai Mall, The Boulevard, The Old Town, Old Town Island, The Residences, Burj Views, man-made lakes and landscaped parks and gardens. The company also has joint ventures and projects across the region covering Saudi Arabia, Egypt, Jordan, Libya, Morocco, India and Pakistan.

 

While continuing to actively pursue expansion in its core business of innovative, high quality real estate development, Emaar has diversified into related business lines to further build value for its 41,000 shareholders, which includes the Government of Dubai. Emaar owns and manages three subsidiaries – Dubai Bank, focused on retail and commercial banking; EMRILL, a joint venture with the UK-based Carillion which provides innovative property and facilities management services; and Sahm, its IT services arm. Emaar is also the majority shareholder in Amlak Finance, UAE’s first mortgage finance company.

 

The company is part of the Dow Jones Arab Titans Index and the No. 1 real estate company in terms of market capitalisation.

 


 


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