DUBAI, 16 July 2006 — Reiterating its strong grip on fundamentals, Emaar Properties has announced record revenue and net profits of AED5.079 billion ($1.383 billion) and AED3.053 billion ($831 million) respectively, for the half year ended June 30, 2006. The revenue and profit for the second quarter of 2006 (April to June) were AED 2.840 billion ($773 million) and AED1.536 billion ($418 million) respectively.
Emaar’s net profits for the first six months of the year gained by 21 percent over the record first-half 2005 results of AED2.533 billion ($690 million). Revenues for the half year grew 8 percent over half-year 2005 results of AED4.717 billion ($1.284 billion).
Net profits grew 1 percent over the first quarter 2006 results of AED1.517 billion ($413 million), and by 27 percent over the net profit of AED1.208 billion ($329 million) in second quarter 2005.
Second quarter 2006 gross profit rose to AED1.681 billion ($458 million), an increase of 13 percent from AED1.487 billion ($405 million) during the first quarter of 2006, and 40 percent from AED1.199 billion ($326 million) in the second quarter of 2005.
Annualized Earnings per Share (EPS) for the period is AED1.04 compared to the actual EPS of AED0.85 for 2005.
“Our global expansion program is on overdrive and aligned with our vision of becoming one of the most valuable companies in the world in the next four years,” said Mohamed Ali Alabbar, chairman of Emaar Properties. “The second quarter results are indicative of the robustness that marks Emaar’s fundamentals. As a company committed to its shareholders, we want to go the extra mile and enhance investor confidence through value-added projects.”
During the first half of 2006, Emaar announced a number of international projects of development value AED79.04 billion ($21.52 billion).
Following the enactment of the Dubai Property Law early this year, sales for both residential units and land plots strengthened in Dubai. The second quarter’s outstanding performance also mirrors the expansion of the company into new markets, a consolidation of its presence in North Africa and groundbreaking diversification into education and healthcare.
“Emaar gains its momentum for growth from Dubai, which has made rapid strides in all sectors driven by the vision of UAE Vice President and Prime Minister and ruler of Dubai Sheikh Mohammed ibn Rashid Al-Maktoum,” said Alabbar. “As the regional hub for trade and commerce, property development, information technology, media and knowledge resources, Dubai fuels the growth of companies like Emaar.”
In line with Emaar’s expansion plans, in June, the Emaar board of directors approved the company’s acquisition of John Laing Homes, the second largest privately held homebuilder in the US. This first US foray of Emaar reiterates the real estate developer’s projected Vision 2010 of becoming one of the most valuable companies in the world through careful expansion and diversification.
The AED3.856 billion ($1.050 billion) acquisition of John Laing Homes was funded from the proceeds of Emaar’s July 2005 rights issue, which doubled the capital of the company to AED6.1 billion ($1.66 billion).
In the second quarter, Emaar further consolidated its Vision 2010 strategy through a series of planned expansions.
Emaar, the single largest private sector developer in Saudi Arabia, with the SR100 billion ($26.6 billion) King Abdullah Economic City, expanded operations in the Kingdom. The company partnered with Al Oula Development to build Jeddah Hills, a a SR41 billion ($11.2 billion) community project. Second quarter growth also saw Emaar announcing plans to develop the AED6.9 billion ($1.88 billion) Marina Al Qussor project in Tunisia.
