Dubai: Emaar Properties, developer of the world's tallest tower Burj Khalifa, proposed a 10 per cent cash dividend, worth Dh600 million, to shareholders during a chaotic annual general meeting (AGM) in Dubai on Monday.
Although the shareholders sought a 20 to 30 per cent dividend, the management argued against it, citing a Dh4 billion short-term loan repayment this year.
"We can't distribute more than 10 per cent to the shareholders as we have financial obligations that we need to meet, which I'm not sure if we will reschedule. We cannot default on loan payments," Chairman Mohammad Al Abbar said.
Emaar's 24 per cent revenues came from entertainment and shopping malls, including its flagship property Dubai Mall.
Emaar Properties' investments outside the UAE have risen in value to Dh22 billion, Al Abbar told the shareholders.
Dubai's biggest developer by market value has Dh14.9 billion in reserves and its total equity is valued at Dh31 billion while total assets are valued at Dh62.5 billion, its financial report shows. Its bank balance and cash in hand stand at Dh5 billion, which prompted shareholders to seek a bigger dividend.
Emaar posted a 62 per cent fall in fourth-quarter earnings, hit by a write-down of assets and impairments in its financial portfolio. Shareholders disagreed on the appointment of auditing firm Ernst and Young, demanded the appointment of Deloitte instead.
In 2010, Emaar recorded a net operating profit of Dh3.034 billion, 31 per cent higher than the net operating profit of Dh2.324 billion.
