Dubai's largest real estate developer saw shares rise rose 2.1 percent before shareholder meeting
Shareholders of Emaar Properties , Dubai's largest real estate developer, met on Tuesday and approved the board's recommendation to distribute a 10 percent cash dividend for 2012.
Before the meeting, Emaar shares rose 2.1 percent on Tuesday, extending strong gains in recent days, partly on speculation by some investors that shareholder pressure might prompt management to raise the dividend, traders said.
Emaar's revenue from sale of apartments more than doubled last year, offseting a sharp drop in sales of commercial units that is struggling to recover three years after the emirate's property market collapse.
The builder of the world's tallest tower generated a revenue of AED2.5bn from sales of condominiums last year, compared with AED1.1bn in 2011.
However, income from sale of commercial units, plots and others dropped significantly to AED682.2m compared with AED2.7bn in the prior-year.
Emaar is one of the better performing companies in Dubai's real estate sector with its focus on retail and hospitality segments helping it see through the emirate's real estate crash which resulted in a 50 percent slump in prices.
Dubai itself has witnessed a gradual recovery in its property market largely buoyed by return of speculative buyers in the home sales segment.
Last year, Emaar handed over some 1,100 homes and more than 140,000 sq ft of commercial office space in Dubai as well as over 700 homes and more than 122,000 sq ft of commercial space in its international markets.
Emaar launched several projects including Panorama at The Views, The Address The BLVD in Downtown Dubai, and luxury villas and town houses in Arabian Ranches.
How can sales be up,rents be up,and income drop to almost 1/4 of what it was before while claiming a recovery in the real estate market? Labour costs are low as their builders are underpaid foreign imported construction workers. There are no income taxes as well on profits. Something is beyond not right here.