EMAAR profits rise by record 150%
Company's earnings per share (EPS) up by 137%, guaranteed to delight investors.
Emaar Properties, one of the leading property developers in the world and the region's largest, today announced record annual profits of AED 1.691 billion for the year ended December 31, 2004.
This corresponds to a net profit increase of AED 1.015 billion or 150%. Net profit for fiscal 2003 was AED 676 million.
Property revenues increased by AED 1.527 billion or 41% to AED 5.248 billion for the year ended 31 December 2004, as compared to AED 3.721 billion for the year 2003.
Significantly, the Earnings Per Share increased by AED 0.37 per share or 137%, from AED 0.27 per share for the year 2003, to AED 0.64 per share for the year ended 31 December 2004.
Striking a buoyant note on the company’s performance, Mohamed Ali Alabbar, chairman, Emaar Properties said: “Our performance in 2004 has been largely driven by the successful completion and delivery of a number of phases of our residential and commercial developments. The sheer speed with which we have been able to lead and grow the market has been a true challenge and I commend the EMAAR team for this great achievement.
“The real estate market in Dubai experienced unprecedented growth in 2004. All residential units in the launches announced this year have been sold successfully. During the past year EMAAR handed over 8,000 homes to owners and launched nearly 40 real estate projects, including the prestigious Burj Dubai development.
“Demand for our quality world class communities continues to be driven by strong interest in property acquisition by Gulf nationals, expatriate residents and overseas investors. With more development projects coming on stream and ambitious plans for the year ahead, EMAAR expects to maintain growth in 2005 and further build on the financial strength of the company.
“Our aspiration is to build EMAAR into a world-class brand that is not only symbolic of the success of Dubai and the UAE but is a benchmark for the real estate sector the world over,” Alabbar said.
The success of EMAAR is symbolic in the company’s iconic world class development, the Burj Dubai tower, which was officially launched in 2004 in the presence of HH General Sheikh Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Defence Minister.
The world’s tallest tower is located in the Burj Dubai development. The Dubai Mall, the world’s largest shopping and entertainment complex; The Residences’ exclusive upscale apartments and the stylish antiquity of The Old Town, lakes, landscaped parks and the 3.5kms Boulevard that binds together what will be Downtown Dubai – are all integral to this development that will be the pride of the region.
The company’s 2004 financial results are a testimony of it’s ability to take the EMAAR brand to new markets. The past year saw the company push forward a new expansion strategy pursuing collaborations with partners and targeting opportunities in Saudi Arabia, Egypt, Jordan, Libya, Morocco, Lebanon, Turkey, India as well as other international markets.
In early 2004, the company announced the signing of the letter of intent to establish a worldwide group of luxury hotels and vacation resorts in partnership with Giorgio Armani. The first ‘Armani Hotel’ will be an integral part of the Burj Dubai tower, which opens in 2008.
The company also established a joint venture with Al Oula Real Estate to set up Emaar Middle East to focus on developments in Saudi Arabia and other GCC countries. EMAAR also signed a deal with the Andhra Pradesh state government to set up commercial, residential and leisure facilities along with a convention centre in the south Indian city of Hyderabad.
EMAAR has been the pioneer in driving growth in the regional real estate market including introducing the concept of gated communities, property purchase on freehold as well as innovative marketing and financing initiatives. In a short span of eight years, the company has reinforced the benefits of the public joint stock company culture and has dominated the financial market in the UAE. EMAAR stock is part of the newly created Dow Jones/DIFC Arabia Titans Index and currently represents 5.7% of this index, which comprises 50 blue-chip companies located throughout the region.
In June last year, the company’s shareholders ratified the board of directors resolution to split the share’s nominal value from AED10 to AED 1 per share to enhance and protect the interests of the shareholders and the company by allowing the shares to be available and affordable to investors.
“We are always on the lookout for new strategic initiatives, which build value for our shareholders. Real estate markets are evolving across the Middle East and Saudi Arabia in particular. These evolutions challenge us to greater heights,” Alabbar concluded.