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Thu 30 Oct 2014 03:26 PM

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Emaar's malls unit posts 55% jump in Q3 net profit

Listed subsidiary Emaar Malls Group says it made quarterly profit of more than $87m

Emaar's malls unit posts 55% jump in Q3 net profit

Dubai's Emaar Malls Group (EMG), a unit of Emaar Properties that listed on the emirate's main stock market in October, reported a 55.2 percent rise in third-quarter net profit on Thursday.

The retail and malls unit of Dubai's largest developer made a quarterly profit of AED321.18 million ($87.5 million), up from AED206.97 million in the corresponding period of 2013.

Quarterly revenue was AED649.88 million versus AED542.74 million a year ago.

Emaar Properties said in August it would pay a special dividend of AED9 billion to its shareholders after EMG went public, using cash raised from the offering and other dividends paid by EMG to the parent firm prior to listing.

In a separate Emaar Properties statement on Thursday, the developer said it will hold a shareholder meeting on November 24 in which a proposal to distribute the cash dividend, equivalent to 1.27 dirhams per share, would be discussed.

The statement added shareholders registered as of December 4 would be entitled to this dividend, which is significantly above the 0.14 dirhams a share Emaar paid as a dividend for 2013.

According to analysts, the cutoff date implies Emaar could pay the dividend that month, which would be ahead of its annual dividend payout in early 2015.

Many traders had assumed the malls-related dividend would be paid at the same time as the annual dividend, so Thursday's statement could boost Emaar's shares when trading resumes on Sunday.

Both statements came after market hours. Shares in EMG had finished the day flat, while Emaar Properties slumped 3.4 percent, against a wider market decline of 1.7 percent.

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