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Thu 5 Mar 2015 10:12 AM

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Dubai's Emaar Properties proposes 15% cash dividend for 2014

Burj Khalifer developer reported a 14% rise in Q4 net profit on this week

Dubai's Emaar Properties proposes 15% cash dividend for 2014
(AFP/Getty Images)

The board of Dubai's Emaar Properties proposed a 15 percent cash dividend for 2014, it said in a statement on Thursday.

The board recommended AED0.15 ($0.0408) per share to shareholders, the same as the cash payout proposed for 2013, and did not match the 10 percent bonus share issue for the prior year.

The dividend will be approved at the annual general meeting set for April 15, according to a bourse statement.

The builder of the world's tallest tower reported a 14 percent rise in fourth-quarter net profit on Sunday.

The developer, in which Dubai's government owns a minority stake, made a net profit of AED861 million in the three months to December 31, Emaar said in a statement. That compares with a profit of AED756 million in the year-earlier period.

Quarterly revenue was AED2.85 billion, up from AED2.76 billion a year earlier.

With a portfolio of 12 hotels and resorts consisting of over 1,900 rooms, Emaar's hospitality and leisure business recorded 2014 revenue of AED1.681 billion, 17 percent of the total revenue and 11 percent higher than 2013.

Mohamed Alabbar, chairman of Emaar Properties, said: "2014 was a robust year for Emaar as we recorded positive growth across each of our three core businesses - property, shopping malls and hospitality - as well as in our international markets.

"We created long-term value for our stakeholders through our record results, buoyed by the upbeat performance of Dubai's growing economy.

"Our focus for the future is to develop smart communities that support the Dubai Plan 2021 announced by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, to establish Dubai as a pivotal hub in the global economy."

He added: "Emaar's 2015 strategy for sustained value creation is to focus on world-class project delivery in Dubai and our international markets through professional project management supported by the highest standards in customer service. We are committed to strengthening the economic impact of our projects led by innovative approaches that will build Dubai's competitiveness as the world's leading investment and lifestyle destination."

Emaar made an annual profit of AED3.29 billion in 2014. This compares with a profit of AED2.57 billion in 2013.

As of December 2014, Emaar said it has handed over 38,600 residential units including over 22,000 apartments and over 16,600 villas in Dubai and other international markets. In Dubai alone, over 33,000 residential units have been handed over to date, including over 20,500 apartments and around 12,500 villas.

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The Consultant 4 years ago

Can AB and other business media please stop parroting this Emaar press release figure of a 15% dividend. It's only 15% if you bought the shares at par, which of course no one did.

The 15 fil per share dividend works out as slightly less interesting yield of around 2% based on the current share price.