Dubai: Emaar’s 2016 bottom-line numbers is getting a lift from the release of the insured sum related to the fire that broke out at its Address Hotel in Downtown late on December 31, 2015.
After weeks of speculation that a deal has been struck with its insurer, Emaar on Monday (February 6) confirmed in a statement on Dubai Financial Market that the deal was done.
This would allow it to “recover” Dh1.22 billion from the concerned insurer, Arab Orient Insurance. This then sets up the developer to write back the Dh301 million it had set aside as provision in its books over the fire damages. This Dh301 million will now be recorded as income in its full-year 2016 numbers, offering a further boost to the results, which are imminent.
The damaged Address property is likely to open in the second half of this year.
Emaar’s mall operations announced its 2016 numbers last week. For the first three quarters of last year, the parent company reported a 19 per cent increase in net profit to Dh3.62 billion. At or above the Dh5 billion would give a lot of shine for Dubai’s property market, more so after it passed through an extremely difficult trading period.
Nakheel last week issued robust profits of just under Dh5 billion, continuing to record gains from its leasing portfolio expansion.
In the fourth quarter, Emaar had the first round of residential launches through its joint venture banner Emaar South, which focuses on mid-market housing at Dubai South. Those units were instantly sold out.