Emaar Development remains upbeat in face of profit dip

A rendering of Dubai Creek Harbour, an Emaar project. (Supplied)
Updated 14 November 2018
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Emaar Development remains upbeat in face of profit dip

  • Dubai property market under pressure
  • Union Properties post Q3 loss

DUBAI: Property developer Emaar Development has said investor interest in its pipeline of residential projects remains “strong,” while posting a decline in net profit for the third quarter compared to the same quarter last year.
The company recorded a Q3 net profit of 682 million dirhams ($185.67 million), a 33 percent decline on the 1.02 billion dirhams recorded in the same time period last year, according to a filing on the Dubai stock exchange on Tuesday.
Over a nine-month period, Emaar performed well, with profits rising by 19 percent to reach 2.49 billion dirhams, compared to 2.1 billion dirhams recorded in the same time period last year.
The developer recorded 10 billion dirhams’ worth of residential sales in the first nine months of the year, and has a total sales backlog of 38.5 billion dirhams, which will be recognized as revenue in the next three to four years.
Emaar said it is readying to welcome its first residents next year to its Dubai Creek Harbour development.
This year it launched The Grand, a collection of luxury apartments and penthouses in Dubai Creek Harbour, as well as Socio and Collective, co-living spaces in Dubai Hills Estate, among other projects.
“The strong performance of Emaar Development underlines the strength of Dubai’s property sector, driven by the robust economic fundamentals of the nation,” said Mohamed Alabbar, chairman of Emaar Development and Emaar Properties, in a statement.
Alabbar’s comments come as other market commentators raise concerns about the future of the emirate’s real estate market.
While many hope the rebound in oil prices and the World Expo being held in Dubai in 2020 will reignite the property market, there are signs that property prices will remain flat for some time.
Damac Properties Chairman Hussain Sajwani said at the World Economic Forum event on Monday that 2019 will be “another difficult year,” Arab News reported on Monday.
According to real estate consultancy JLL’s Q3 Dubai report: “The residential market has continued to soften with single digit declines in both sale prices and rents during Q3 2018 despite recent government measures to inject confidence in the market by introducing 10-year residency visas for certain categories of retiree.”
It added: “The lack of new project launches at (the annual property event) Cityscape reflects the subdued investor sentiment and prices are likely to decline further over the next 12 months.”
Union Properties, the developer behind Dubai’s Motor City, also posted its third-quarter results on Tuesday, reporting net profit of 145.6 million dirhams for the first nine months, compared to a net loss of 2.3 billion dirhams in the same period last year.
The results mark a turnaround for the company, which saw its profits hit last year after management had to make provisions to cover previous accounting errors.
The company did, however, post a loss attributable to the shareholders of the company in Q3 of 61.8 million dirhams.


Disney again makes history with takings above $7bn for 2018

Updated 11 December 2018
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Disney again makes history with takings above $7bn for 2018

  • Box office gross marks second biggest year for Disney
  • Latest offering "Mary Poppins Returns" expected to dominate box office

LOS ANGELES: Walt Disney Studios is again ending the year on a high note, posting more than $7 billion in global box office earnings, thanks to hits such as "Black Panther" and "Avengers: Infinity War."
"This is only the second time in history any studio has surpassed the $7 billion mark, after Disney's own industry-record 2016 global gross of $7.6 billion," the company said in a statement on Monday.
"The Studios' estimated international box office gross through December 9 is an estimated $4.069 billion, marking our second biggest year and the third biggest in industry history," it added.
Disney's success comes as the studio is set to release "Mary Poppins Returns" on December 19, which is expected to top the box office during the holiday season.
"To date, four of the top eight worldwide releases of the year are from The Walt Disney Studios, including the top two global and top three domestic releases," the company said.
"Avengers: Infinity War," made by Disney's Marvel subsidiary, led the way, earning $2 billion alone. It is followed by superhero movie "Black Panther," which earned $1.35 billion worldwide.
"Incredibles 2," made by Pixar, another Disney subsidiary, earned $1.24 billion.
Other top box office earners for 2018 are "Ant-Man and The Wasp," "Solo: A Star Wars Story," and "Ralph Breaks the Internet," which has held the number one spot at the North American box office for the third consecutive week.