Dubai : Emaar Properties yesterday reported a 98 per cent jump in net profit to Dh327 million last year compared to Dh165 million in 2008.
The fourth-quarter 2009 net operating profit stood at Dh923 million, 41 per cent higher than the third-quarter's Dh655 million and 149 per cent higher than fourth quarter 2008's Dh370 million, the company said in a statement.
Emaar's total revenue, however, declined 21 per cent to Dh8.41 billion in 2009 from Dh10.71 billion in 2008.
Net operating profit for the full year also fell 45 per cent from 2008.
Revenues for the last three months of 2009 reached Dh2.98 billion, 53 per cent higher than third-quarter 2009 revenue of Dh1.948 billion and 94 per cent higher than the fourth quarter 2008's Dh1.53 billion.
Expenditure
Total expenditure stood at Dh4.31 billion last year, a 21 per cent decline from Dh5.48 billion in 2008.
Losses from discontinued operations and impairment of assets declined 55 per cent to Dh1.84 billion from Dh4.07 billion in 2008.
"The company also recorded lower fee income on property transfers due to discontinuance of such charges and lower net interest income due to utilisation of cash resources to complete investment assets [malls and hospitality] during the year," a statement said.
Although the profitability levels were maintained for the core businesses, Emaar said its net operating profit fell due to provisions made by the company's financial subsidiaries, Amlak Finance and Dubai Bank towards their loans and advances portfolio.
"The results were stronger than we expected," said Majid Azam, Mena (Middle East and North Africa) real estate analyst at HC Securities.
"The results were driven by stronger revenues, stronger deliveries of units as well as rental income which saw substantial growth in 2009 due to Dubai Mall and Marina Mall coming online," he added.
The company delivered around 3,100 units last year, lower than the 4,900 delivered in 2008.
However its hospitality and mall subsidiaries were significant contributors to its revenue stream, with the Dubai Mall attracting more than 37 million visitors in its first year of operation.
Commitment
Emaar Chairman Mohammad Al Abbar said the company focused on the completion of existing projects across global markets.
"The crowning achievement in our track record of successful project management and delivery is the inauguration of the Burj Khalifa.
"From delivering the world's tallest building to the world's largest shopping centre, and further strengthening our ability to built world-class communities, such as Downtown Dubai, we have proved our commitment to deliver."
Emaar stated that its focus during 2010 would be on middle-income housing in emerging markets, citing India, Egypt and Pakistan and on its international projects.
Azam said, "Next year, the delivery of units in Burj Khalifa will see a substantial growth of rental of income. Hospitality income should also grow as economies start to recover which will in turn reflect on tourist numbers coming to Dubai."
