Emaar Properties PJSC, the world's Number 1 real estate company by market capitalisation, today announced results for the third fiscal quarter for the period ended September 30, 2005. Net profit for nine months soared to AED 3.690 billion (€0,91 bln) compared to AED 1.039 billion (€0,26 bln) in the same period a year ago, or a growth of 255 per cent.
Revenue grew 77 per cent to AED 6.757 billion, up from AED 3.808 billion for the same period in 2004. In annualized terms, this equates to an earnings per share of AED 0.86 (2004: AED 0.24 per share).
Today's announcement represents the continued growth of profitability for the Company, which has diversified its portfolio and has significantly increased its reach into international markets on the back of a successful rights issue.
The 10-day subscription period for Emaar's 1:1 rights issue, which opened on August 4, to increase its shares from 2,835,500,000 to 5,671,000,000, closed at the end of business on August 15, 2005. Priced at AED 5, an AED 4 premium, a share, the issue has attracted immense interest from its shareholders. More than 70 per cent of subscriptions were received in cash. The remaining 30 per cent was paid for by post-dated cheques.
Emaar Chairman Mohamed Ali Alabbar said: "As one of the Middle East's most successful public companies in the region, our innovative approach to real estate and a desire to provide world class, master planned lifestyle communities is the driving force behind our expansion and continued growth.
"This has been another excellent performance, inspired by the leadership, support and motivation of HH General Sheikh Mohammed Bin Rashid Al Maktoum, Dubai Crown Prince and UAE Defence Minister. His Highness' influence has been instrumental in ensuring that today, Emaar is one of the world's leading developers.
"We have delivered shareholder value that is the benchmark for companies operating in an open market situation and have even out-performed the results of companies that work in a monopolistic market. Our success in Dubai is only the beginning of the Emaar story and we have new chapters to establish in several parts of the globe."
The third quarter period witnessed the signing of Emaar's first UAE agreement outside Dubai. The AED 12 billion Umm Al Quwain Marina development, an agreement between Emaar Middle East and the government of Umm Al Quwain, will create a vast master planned waterfront community offering more than 9,000 homes.
During this period, Emaar signed an AED 14.5 billion deal to develop Emaar's first large-scale project in Egypt - Cairo Heights. A residential, commercial and recreation community, Cairo Heights is expected to reshape the face and lifestyle of the historic Egyptian capital. The groundbreaking deal represents the first step in a series of international projects to be announced by the property major.
Emaar also announced plans to aggressively expand the retail sector with investments of over AED 15 billion to develop approximately 100 malls in the mega emerging markets of the Middle East, North Africa and the Indian subcontinent. Incorporating a fully owned subsidiary, Emaar Malls, the roll out of world class shopping malls in the UAE, Saudi Arabia, Jordan, Syria, Lebanon, Algeria, Morocco, India and Pakistan will start within the next few years. The Company is already fast developing the world's largest shopping destination the 12 million square feet Dubai Mall in the Burj Dubai Development.
Emaar's most ambitious project to date, the Burj Dubai Development saw several high profiles launches during this time. From the corporate side with its Burj Dubai Business Hub announcement and also the residential with The Residences villas and penthouses as well as The Lofts - the first properties along the Burj Dubai Boulevard to be launched, the Development launched five elements of Dubai's new downtown.
With construction work progressing at a rapid pace Emaar's iconic 'super' tower Burj Dubai climbed to its twelve storey height and will average one floor per