Listed UAE property companies report 30% rise in combined first-quarter profits

Aldar Properties announced a 4 percent rise in its first-quarter profit to 668 million dirhams, from 641 million dirhams, in what the emirate’s largest developer described as a “strong start to the year.” (Courtesy Aldar)

DUBAI: The aggregate profits of the UAE’s 13 publicly listed property companies rose by almost 30 percent in the first quarter, state-run news agency WAM reported.
The real estate companies’ profits surged to 4.35 billion dirhams ($1.18 billion), from 3.36 billion dirhams a year ago, during the period ended March, which beat “expectations of industry analysts” and led the “market in terms of dividend distributions, thanks to a consistently growing demand,” the report added.
At the Dubai Financial Market, the eight listed property companies reported profits worth 3.65 billion dirhams during the first three months of the year, 36.2 percent higher compared with the 2.68 billion dirhams in the same period of 2017. The data was consolidated from the financial figures released by the companies.
Emaar Properties, the UAE’s biggest listed property developer, was the best performer with a 1.5-billion-dirham profit for the first quarter as topline numbers were boosted by higher contributions from its shopping malls and hospitality businesses.
The Dubai developer has launched a few projects this year: Dubai Creek Harbour, Downtown Dubai, Dubai Hills Estate, Emaar South, Emaar Beachfront, Arabian Ranches and Dubai Marina.
Emaar Development, the real estate arm of Emaar, earlier said its net profit increased by about 62 percent to 819 million dirhams during the three months to end-March, from 506 million dirhams a year earlier.
Over at the Abu Dhabi Securities Exchange, the combined income of the five listed property companies rose 3.8 percent to 704 million dirhams during the first quarter from 678 million dirhams a year ago.
Aldar Properties announced a 4 percent rise in its first-quarter profit to 668 million dirhams, from 641 million dirhams, in what the emirate’s largest developer described as a “strong start to the year.”
“Development sales for the quarter were 681 million dirhams, driven by sales of existing developments under construction, with over 80 percent of all projects under development sold as at March 31,” Aldar said in a statement.
The developer also launched Reflection at the end of the quarter, a boutique development on Reem Island which consists of 374 units.
Aldar and Emaar entered into a joint venture last March to develop 30 billion dirhams worth of pipeline projects, initially focusing on Emaar Beach Front in Dubai and Saadiyat Grove at Saadiyat Island in Abu Dhabi.