By Anil Bhoyrul
UAE conglomerate hit by falling property prices, focuses on retail and hospitality units
Dubai developer Emaar Properties, builder of the world’s tallest tower, said on Wednesday its Q3 profit fell seven percent to AED612m ($167m).
Net profit for the three months to September 30, 2010 stood at AED687m, down from AED 655m in the third quarter of 2009 and missing analysts estimates.
Revenue for the quarter stood at AED2.782bn, 43 percent higher than the same period a year earlier.
Cost of revenues, however, more than doubled in the quarter to AED1.75bn from AED852m in the year-earlier period, taking a toll on profits.
The company said that approximately 45% of the total units in Burj Khalifa, the world’s tallest building, have been handed at the end of the third quarter, 2010.
In a statement, the company said it was now putting greater emphasis on its shopping malls and hospitality businesses.
Emaar chairman Mohamed Alabbar said: “Our strategic developments in shopping malls and hospitality are now yielding strong recurring revenues, which highlights our commitment to investing in the long term.”